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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 Termination is legal given certain fulfilments, where it generally needs to be justified by objective reasons such as redundancy or disciplinary procedures and must follow the due process. If an employee is unlawfully terminated, the employer is liable to various financial obligations which includes severance pay and compensation for damages incurred. Notice is a pre-requirement on both ends of the parties in cases of employment terminations..