Parliament Legislates Stringent Labour Law

Jul 6 , 2019


[ssba-buttons]

Parliament has a legislated stringent new labour law during its session held on July 4, 2019. Drafted by the Ministry of Labor & Social Affairs, the proclamation aims at creating a conducive environment for investment that leads to the creation of more jobs while productivity is maximised through the protection of workers’ rights. It also aims to address the shortcomings and limitations of the old law, which was 14 years old. The law that spent four years in the making had passed various stages of discussion among stakeholders before it was legislated last week. The Confederation of Ethiopian Trade Unions, Ethiopian Employers Federation, International Labor Organization (ILO), the Federal Attorney General and public enterprises have participated in the drafting process. Among the changes the new bill introduces is allowing for the dismissal of employees who have a record of coming to work late eight times and are absent for five days without cause within a six-month period. The bill also extends the probation period from 45 days to 60 working days. Another significant departure of the new bill is the period of maternity leave. The new law gives 30 working days of pre-labour leave and 90 days of post-labour leave.


Radar

Ethiopia, IFAD Sign 69.2m Dollar Deal to Promote Lowland Resilience

The Ethiopian Government and the International Fund for Agricultural Development (IFAD) have signed a 69.2 million dollar grant agreement to implement Phase II of the Lowland Livelihoods Resilience Project (LLRP II). The grant agreement was signed by Finance Minister Ahmed Shide and IFAD President Alvaro Lario. The project targets climate resilience and improved livelihoods for three million people in pastoral and agro-pastoral communities. Co-financed by the World Bank, LLRP II covers eight reg...


Radar

NBE Expands Diaspora Warning Over Unlicensed Remittance Firms

The National Bank of Ethiopia (NBE) has issued an expanded public warning targeting unlicensed remittance operators abroad, flagging four U.S.-based companies it says are undermining Ethiopia's financial regulations. The warning includes newly disclosed findings and specific cases that underscore growing concerns about illicit cross-border financial activity. Remittance flows remain a vital lifeline for Ethiopia's economy, supporting households and supplying critical foreign currency. But as...


Radar

Stricter Standards Unveiled for Public Auditors, Accounting Firms

The Accounting & Auditing Board of Ethiopia (AABE) has issued a new directive aimed at strengthening oversight and professional standards in the accounting and auditing sector. Grounded in the Financial Reporting Proclamation, the directive addresses long-standing regulatory gaps while preparing the sector for the country's emerging capital market. Key provisions introduce stricter licensing standards for public auditors, professionals permitted to audit public interest entities. Applican...