New Directive Tightens Rules for Foreign Employment Agencies

Oct 18 , 2025

The Ministry of Labour & Skills has issued a directive under the Ethiopian foreign employment framework, setting clear standards for agency size, capital, and operations. Depending on their level, newly established agencies can serve between 10 and over 100 workers a day. Office space requirements range from 100sqm to 700sqm, tied to operational scale. Level-one agencies must hold a paid-up capital of 20 million Br and place a security deposit of 250,000 dollars or its birr equivalent. Lower-level agencies are required to maintain at least five million birr in capital and a 50,000-dollar deposit. Each agency is required to submit quarterly reports through the Ethiopian Labour Market Information System (E-LMIS) within 15 days of each quarter’s start, detailing the number of workers deployed abroad. Operational limits also apply: level-one agencies may create up to 20 employment links in a single destination country, with no cap on countries of origin. Lower-tier agencies may form up to four links and source from no more than two origin countries. Agency staffing must align with scale, ranging from at least 10 workers to over 60 at the highest level.