Why Understanding Labour Law Matters

Why Understanding Labour Law Matters

A thorough understanding of Ethiopian Labour law is essential for both employers and employees. Labour Proclamation No. 1156/2019 ensures compliance with legal obligations, protects workplace rights, and fosters a cooperative environment. Employers who adhere to Labour laws can minimize legal risks, while employees can advocate for their rights effectively. The Ethiopian Labour law reinforces the relations of employees and employers and advocates for the professionalism of the work place and equitable treatment of individuals in places of work within the Labour Proclamation No. 1156/2019. The law encompasses fundamental provisions on employment contract and working conditions, leave and working hours, employment and settlement of disputes, and grievance handling procedures and mechanisms in local context practices.

Employment Contracts

This law stipulates that employment contracts are written, that it contain the principal duties of the employee, payment, the working hours, and duration of employment. This practice enforces every employee/employer to be aware of the terms and conditions in advance in case there are any ambiguities in the future. Oral agreements, while less common, are permissible for certain short-term employment arrangements they pose certain legal risks.

Working Hours and Overtime

The law prescribes a standard work of 48 hours a week and generally organized in such a way that an employee works for eight hours and a total of six days in a week. Any employee who works beyond these hours shall receive overtime compensation at a rate of between 1.5 times to 2 times the normal hourly rate wages depending on the day of the week or time of day worked e.g. late –night shifts, weekends, or public holidays. The Ethiopian Labour law also recognizes certain Leave and Rest Days, to ensure the work and life balances. All Employees have the right to: Annual Leave Sick Leave Maternity Leave

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