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10th Year No. 12

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PROCLAMATION NO. 377/2003LABOUR PROCLAMATION

WlffiREAS, it is esential to ensure that worker-em-ployer relations. are governed by the basic principles of rightsand obligations with a view to enabling workers andemployers to maintain industrial peace and work in the spiritof harmony and cooperation towards the all-round develop-mentofourcountry;

WHEREAS, it has been found necessary to guaranteethe right of workers and employers to form their respectiveassociations and to engage, through their lawful electedrepresentatives, in collective barganing, as well as to lay downthe procedure for the expeditious settlement of Labourdisputes, which arise between workers and employers;

WHEREAS, it is necessary to strengthen and define bylaw the powers and duties of the organ charged with theresponsibility of inspecting, in accordance with the law,labour administration, particularly l",bour conditions, oc-cupational safety, health and work environment;

WHEREAS, it has been found necessary to revise theexisting Labour law providing for the basic principles whichgovern worker-employer relations and for labour conditionstaking into account the political, economic and social policiesof the Government and in conformity with the internationalconventions and other legal commitments to which Ethiopiais a party with a view to translating into practice the objectivesreferred to above;

NOW, THEREFORE, in accordance with Sub-Article 1and 3 of Article 55 of the Constitution of the FederalDemocratic Republic of Ethiopia, it is hereby proclaimed asfollows:

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PARTONEGENERAL

1. Short TitleThis Proclamation may be cited as the "LabourProclamation No. 377/2003."

2. DefinitionsIn this Proclamation:1) "employer" means a person or an undertaking who

employs one or more persons in accordance withArticle 4 of this Proclamation;

2) "undertaking" means any entity established under aunited management for the purpose of carrying onany commercial, industrial, agricultural, construc-tion or any other lawful activity;Any branch carrying on the activities of an under-taking which is designated separately and whichenjoys operational or organizational autonomy shallbe deemed to be a separate undertaking;

3) "worker" means a person who has an employmentrelationship with an employer in accordance withArticle 4 of this Proclamation;

4) "minister" or "ministry" means the Minister orMinistry of Labour and Social Affairs respectivelyor Bureau of Regional Labour and Social Affairs.

5) "work rules" means, subject to the provisions ofthisProclamation and other relevant laws, an internalruels which govern working hours, rest period,payment of wages and the method's of measuringwork done, maintenance of safety and the prevention",of accidents, disciplinary measures and its im-plementation as well as other conditions of work;

6) "conditions of work" means the entire filed ofrelations between workers and employers and shallalso include hours of work, wage, leave, paymentsdue to dismissal, workers health and safety, compen-sation to victims of employment injure, dismissalbecause of redundency, grievance procedure and anyother similar matters.

7)' "Region" means any region as per Article47 oftheConstitution of Federal Democratic Republic ofEthiopia~ For the purpose of this Proclamtion it alsoinclude Addis Ababa and Dire Dawa Adminis-tration.

3. Scope of Application1) Without prejudice to Sub-Article (2) ofthis Article,

this Proclamation shall be applicable to employmentrelations based on a contract of employment thatexist between a worker and and an employer.

2) This Proclamation shall not be applicable to thefollowing employment relations arising out of acontract of employment:(a) contracts for the purpose of upbringing, treat-

ment, care or rehabilitation;(b) contracts for the purpose of educating or

training other than apprentice;(c) managerial employee who is vested with

powers to lay down and execute managementpolicies by law or by the delegation of theemployer depending on the type of activitiesof the undertaking with or without theaforementioned powers an individual who isvested with the power to hire, transfer, sus-pend, layoff, assign or take disciplinarymeasures against employees and includeprofessionals who recommend measures to betaken by the employer regarding managerialissues by using his independent judgement inthe interest of the employer;

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(d) contracts of personal service for non-profitmaking purposes;

(e) contracts refating to persons such as members ofthe Armed Force, members of the Police Force,employees of state administration, judges ofcourts of law, prosecutors and others whoseemployment relationship is governed by speciallaws;

(f) contracts relating to a person who performes anact, for consideration, at his own business orprofesional responsibility.

3. Notwithstanding the provisions of Sub-Artice (1) ofthis Article:(a) unless the Council of Ministers by regulations

decides, or an itnernational agreement to whichEthiopia is a signatory provides otherwise,employment relation between Ethiopiancitizens and foreign diplomatic missions orinternational orgamzations operating within theterritory of EthIopia shall be governed by thisproclamation;

(b) the Council of Ministers may, by regulations,determine the inapplicability of thisProclamation on employment relations es-tablished by religious or charitable or-ganizations:

c) the Council of Ministers shall issue regulationgoverning conditions of work applicable topersonal services.

PART TWOEmployment Relations

CHAPTER ONEContract of Employment

SECTION ONEFormation of Contract of Employment

4. Element of a Contract of Employment1) A contract of employment shall be deemed formed

where a person agrees directly or indirectly toperform work for and under the authority of anemployer for a difinite or indefinte period ot piecework in return for wage.

2) A contract of employment shall be stipulated clearlyand in such manner as that the parties are left with nouncertainty as to their respective rights andobligations under the terms thereof.

3) A contract of employment shall specify the type ofemployment and place of work the rate of wages,method of calculation thereof, manner and intervalof payment and duration of the contract.

4) A contract of employment shall not be concluded forthe performance of unlawful or immoral activities.

5) The contract of employment shall not lay down lessfavourable conditions for the employee than thoseprovided for by law, collective agreement or workrules.

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5. FormUnless otherwise provided by law, a contract of em-ployment shall not be subject to any special form.

6. Contract of Employment made in writingSubject to the provisions of the relevant law, a writtencontract of employment shall specify the following:1) the name and address of the employer;2) the name, age, address and work card number, if any,

of the worker;3) the agreement of the contracting parties made in

accordance with Article 4 Sub-Article (3) of thisProclamation; and

4) the signature of the contracting parties.

7. Contract of Employment Not Made in writing1. Where the contract of employment-is not made in

written form, the employer shall, within 15 daysfrom the conclusion of the contract, give the worker awritten and signed statement containing therequirements specified under Article 6 of thisProclamation.

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2) If the written statement referred to in Sub-Article (1)of this Article is not wholly or partly objected to bythe worker within 15 days from the date of receipt, itshall be deemed a contract of employment concludedbetween the worker and the employer.

8. Failure to Comply ConditionFailure to comply with the requirements of the provisionsof Article 6 or 7 shall not deprive the worker of his rightsunder this Proclamation.

SECTION TWODuration of Contract of Employment

9. Contractof Employment for an Indefinite periodAny contract of employment shall be deemed to havebeen concluded for an indefinite period except for thoseprovided for under Article 10 hereunder.

10. Contract of Employment for Definite Period or PieceWork.1) A contract of employment may be concluded for a

definite period or for piecework in the case of:(a) the performance of specified piece work for

which the employee is employed;(b) the replacement of a worker who is temporarily

absent due to leave or sickness or other causes;(c) the performance of work in the event of

abnormal pressure of work;(d) the performance of urgent work to prevent

damage or disaster to life or property, to repairdefects or break downs in works, materials,buildings or plant of the undertaking;

(e) an irregular work which relates to permanentpart of the work of an employer but performedon an irregular intervals;

(f) seasonal works which relate to the permanentpart of the works of an employer but performedonly for a specified period of the year but whichare regularly repeated in the course of the years;

(g) an occasional work which does not form part ofthe permanent activity of the employer butwhich is done intermittently;

(h) the temporary placement of a worker who hassuddenly and permanently vacated from a posthaving a contract of an indefinite period;

(i) the temporary placement of a worker to fill avacant position in the period between the studyof the organizational structure and its implemen-tation.

2. A contract of employment under Sub-Article l(h)and (i) of this Article shall not exced 45 consecutivedays and shall be done only once.

11. ProbationPerio!1) A person may be employed for a probation period for

the purpose of testing his suitablity to a post in whichhe is expected to be assigned.

2) A worker re-employed by the same employer for thesamejob shall not subject to probation.

3) When the parties agree to have a probation period,the agreement shall be made in writing, In such acase, the probation period shall not exceed forty-five(45) consecutive days.

4) Unless the law or work rules or collective agreementprovides otherwise, the worker shall have during theprobation period, the same rights and obligationsthat a worker who has completed his probationperiod has.

5) If the worker proves to be unfit for the job during hisprobation, the employer can terminate the contract ofemployment without notice and being obliged to payseverance payor compensation;

6) A worker on probation may terminate his contract ofemployment without notice.

"'.

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7) If the worker continues to work after the expiry ofthe probation period, a contract of employment forthe intended period or type of work shall be deemedto have been concluded from the beginning of theprobation period.

SECTION THREEObligation of the Parties

12. Obligations of an Employer

An employer shall in addition to special stipulations inthe contract of employment have the followingobligations:1 (a) to provide work to the worker in accordance with

the contract of employment and(b) unless otherwise stipulated in the contract of

employment, to provide him with implementsand materials necessary for the perforamance ofthe work; .

2) to pay the worker wages and other emoluments inaccordance with this Proclamation or the collectiveagreement;

3) to respect the worker's human dignity;4) to take all the necessary occupational safety and

health measures and to abide by the standards anddirectives to be given by the appropriate authoritiesin respect of these measures;

5) to defray the cost of medical examination, of theworker whenever such medical examination isrequired by law or the approriate authority.

6) to keep a register containing the relvant particularsspecified in Article 6, hereof weekly rest days, publicholidays and leave utilized by the worker, healthconditions and employment injury of the worker andother particulars required by the Ministry;

7) upon termination of a contract of employment orwhenever the worker so requests, to provide theworker, free of charge, with a certifcate stating thetype of work he performed, the length of service andthe wages he was earning;

8) to observe the provisions of this Proclamation,collective agreement, work rules, directives andorders issued in accordance with law, and.

9) to record and keep of information as required by thisProclamation, and any other information necessaryfor the Ministry to carryout its powers and duties,and submit same within a reasonable time whenrequested by the Ministry.

13. Obligations of the Workers

Every worker shall have the following obligations:1) to perform in person the work specified in the

contract of employment;2) to follow instructions given by the employer based

on the terms of the contract and work rules;3) to handle with due care all instruments and tools

entrusted to him for work;4) to report for work always in fit mental and physical

conditions;5) to give all proper aid when an accident occurs or an

imminent danger threatens life or property in hisplace of work without endangering his safety andhealth;

6) to inform immediately the employer any act whichendangers himself or his fellow workers or whichprejudice the interests of the undertakings;

7) to observe the provisions of this Proclamation,collective agreement, work rules and directivesissued in accordance with the law.

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14. Unlawful Activity

1. It shall be unlawful for an employer to:(a) impede the worker in any manner in the

exercise of his rights or take any measureagainst him because he exercises his right;

(b) discriminate against female workers, in mat-ters of remuneration, on the ground of theirsex;

(c) terminate a contract of employment contraryto the provisions of this Proclamation;

(d) coerce any worker by force or in any othermanner to join or not to join or to cease to be amember of a trade union or to vote for oragainst any given candidate in elections fortrade union offices;

(e) require any worker to execute any work whichis hazardous to his life;

(t) discriminate between workers on the basis ofnationality, sex, religion, political outlook orany other conditions.

2. It shall be unlawful for a worker to:(a) intentionally commit in the place of work any

act which endangers life and proprty;(b) take away property from the work place

without the express authorization of the em-ployer;

(c) report for work in a state of intoxication;(d) except for mv /AIDS test, refuse to submit "',

himself for medical examination whenrequired by law or by the employer for goodcause.

(e) refuse to observe sfety and accident preven-tion rules and to take the necessary safetyprecautions,

SECTION FOUR,:;Modification of Contract of Employment

15. Conditions of Modification

Conditions of a contract of employment which are notdetermined under this Prroclamation, may be modified

.by:1) collective agreement;2) work rules issued in accordance with this

Proclamation; or3) written agreement of the parties.

16. Amalgamation, Division ar Transferof OwnershipWithout prejudice to Article 15 of this Proclamationamalgamation or division or transfer of ownership of anundertaking shall not have the effect of modifying acontract of employment.

SECTION FIVETemporary Susppension of Right

and ObligationArising out of Contract of Employment

17. General1) Rights and obligations arising out of a contract of

employment may be temporarily suspended in themanner provided for in this section.

2) Temporary suspension of rights and obligationsarising out of a contract of employment shall notimply termination or interruption of the contractprovided, however, a contract of employment shallinterrupt the obligation of;

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flPlr"'~m- f'h1J;m- 'l.H. tJO:J> 0:\1\ OOlJ.+1'I\m- fp'1r+'} OP'lrm- I\f, 0011':t- hI\O:t-:: hlPttD-9" 1\P'1rfOlJ.+COm-'} 1P1r"'~ tD1. P't-m- ooool\it hI\O:t-::

9" /JIre;: v-I\:t-fP'1r 6J'}~.,:t- itl\"7*l1'

1)r- 10:" 1\1\

~. fP'1r m-A fOlJ.*llOm- OhlPtm- mf.9" 01P1r.,.~ m- h Fl7i.,:t-; mf,9" O,n6J 0.,.1.

"""m-

oolPl:t- tDf,9" O..,.Ol:t- it9"9".,:t- tDf,9" O.,.tp'Pf.m1lj~' OOlJ.1.l6Jit9"9".,:t-: f.1f'iA;

(a) the worker to perform the work;(b) the employer to pay wages, other benefits and

allowances unless otherwise provided for in thisProclamation or in the collective agreement.

..

18. Grounds for SuspensionThe following shall be valid grounds for the suspension,in accordance with Article 17, of this proclamation:1) leave without pay granted by the employer upon

request by the worker;2) leave of absence for the purpose of holding office in

trade unions or other social services;3) detention for a period not exceeding 30 days,

provided that the employer is notified within 10days or is supposed to know of the detention;

4) national call;5) full or partially suspension due to force majeure of

the activities of the employer for a period of not lessthan 10 consecutive days;

6) financial problems, not attributable to the fault of theemployer, that requires the suspension of the ac-tivities of the employer for not less than 10consecutive days.

19. Duty to InformWhen rights and obligations arising out of a contract ofemployment are suspended in accordance with Sub-ar-ticle 5 or 6 of Article 18, the employer shall inform theMinistry in writing within 3 days of the occurrence of the"ground for suspension. '

20. Determination by the Ministry1) The Ministry shall determine the existence of a good

cause for suspension within 3 days after receipt ofthe written information pursuant to Article 19.

2) Where the Ministry finds that there is no good causefor suspension it shall order the resumption of thework and payment for the days on which the workerwas suspended.

3) The party who is aggrieved by the decision of theMinister in accordance with Sub-Articles (1) and (2)of this Article may, within five working days, appealto the competent labour court.

21. Effect of Confirmation or Authorization of Suspensioon1) Where the Ministry confirms or proves the existence

of good causes for suspension, it shall fix theduration of the suspension, provided, however, thatthe duration shall not exceed a maximum of90 days.

2) Where the Ministry is convinced that the employercannot resume its activities with the maximumperiod set under Sub-Article (1) of this Article, theworker shall be entitled to the benefits specifiedunder Article 39 and 44.

22. Effects of Expiry of the Period of Suspension

The worker shall report for work on the working dayfollowing the date of expiry of suspension; and theemployer shall reinstate a worker who so reports forwork.

CHAPTER TWOTermination of Employment Relations

23. General1) A contract of employment shall only be terminated

upon initiation by the employer or worker and inaccordance with the provisions of the law or acollective agreement or by the agreement of the twoparties.

1Jr Iif.if~ ~I\ ),;J&+ ,;JtLlIJofI1'CII ftJi;+ I~ +'} Iifji 'H".

~.

Federal Negarit Gazeta - No, 12 26111February 2004-Page 2460

f1\11: 1:C~T hl\."m- ;JC oo+"+A OJ~9"ooh~LA OJ~9" f'1l\o.T~T OO1lT mf. 1\."00"'''1\ ii: f fP t- m-A 1 f"7* ~ l' m-m. T 1\~Cf ~m-9"::

HCii: 1\11:ffPt- m-A1 O,"h..,OJ~9" Oil9"9"~T oolP~T ill\"7*~1'

1)!!' O,"h..,O"'f.~11m- oolP~T ffPt- m-A1 ill\"7*~1'ffPt- m-A htLlJ O;f':f O"'OOl\h-l:T 9"h11T ~*~lI)tM

Ii' I\"'OJ(}~ 1.tI. OJ~9" fPt- f"'f.~1 ffPt- m-A Om-I\-

f"'OJ{}~m- 1.tI. OJ~9" fPt- {}JA:";~. 1Pt-"'~m- 'fPT;r' IPt-"'~ m- 1\.., '111 '11\m- ,"h.., 00 IP~ T OIf1o~;f'

""1I\A;!!. Oooh(}C OJ~9" 01\." 9"h11T 1:C~-I: I\HI\cf:;f'm-

""H;J;

~. h~A OJ~9" ~I\- H"ct f1\t}A ~~T 0001:~""

9"h11T 1Pt-"'~m- 1\00fPt-T 1\1\00:FI\- ""~;J11';

t;~. ffPt- m-A1 Oil9"9"~T ill\"7*~1':., ','

Ii' "''P'P~ OJ1Cf:f ffPt- m-"=fm-1 Oil9"9"~T "7*~1'

~:f"I\-; ITCf9"1Pt-"'~m- O,"h..,f"'(}maJ.1 0011-1:1I\oo.,.m- f"7.1f.C1m- il9"9"~T f,"h.., m-m.T 1\~Cf~m-9"::

~. ffPt- m-A il9"9"~T oo*~1' f"7.'l.c;m-c; OIPt-.,.~m-9" ,,~ 1\il1~~ f"7.IT~m- f"'f.~1m- il9"9"~TO~th-lf: (t1T1 ~m-::

HClf: o-I\TffPt- m-A1.0"''P'P~ OJ1Cf:f1\F,7i~T ill\"7*~1'

1tJ.il HClf:1\11:01\1P& 1\F,7i~T f"7.f.~'" ffPt- m-A oo*~1'

t;?;. m:"""Ii' ffPt- m-A hlPt-"'~m- m'1~: OJ~9" flPt-"'~m-1

foofPt-T :flt-;f' h"7.ool\h-l: "'A~ 0-).;f'9''f :

OJ~9" h1:C~-I: 1:C~;f'If 1\*9" OJ~9" ffPt- h1:"il:J>11.;JC ""1-~T '1":fm- 9"h11"''f 1I:F t\.*~1'~:f"A::

~. f"7.h.,.I\-T ffPt- m-A1 1\"7*~1' "'10. 9"h11"''f1T~m- t\..f>m"- 1\~:fl\-9";

.

V) 1Pt-"'~m- OIPt-.,.~:f "7..,OC 1\'1A 001T).

OJ~9" 0"7..,0"- ,"h;JIf "'''''1~:f .,.t}~~ 001T).;1\) 1Pt-"'~m- flPt-.,.~:f "'m& ITCf 1\00fPt-T

ooLI\.,. OJ~9" oofPt--I:;

th) 1Pt-"'~m- 01\1P&m- ,,~ :"&.;f' "7:"~o- m~9"Olf:C1: o.T O+~O hil OJ~9" 01\." hi1 .,.t}~~001T).;

(0) flPt-"'~m- 1Ith.~(}11 : ~;t- : th~"7Cf:"f TI\-l;t} /1\ool\t}hT: f ;J1I:F o-).;t- : HC :+1\9": f 0..,. {}11 ~"~~T : fHC th~.., : hC..,,,c;

OJ~9" "7..,Ot-If 1\*9"::

1)~' 11\"7i1m1+ct1 ffPt- m-A i11\"7*~1'jj. O"'1I~T i19"9"~T 01\." 1\\1.:\1 t}A"'OJ{}~Oi1.,.+C;~

ffPt- m-A1 11\"7~m1+ct1 "7*~1' f"7.:FI\m-

O"7.h.,.I\-T 1I:F ~m-:: ,V) 11\Oct 9"h11Tc; "7i1m1+ct1 hf"'(}mm-

(warning) Ooof.;J19" ffPt- (}f}T 1\t\"7hOC;t\) Ooof.~m- t\1\9"i1T ffPt- +c;T m~9" 01\11:

mc m-i11' Om:"""m- t\1\fPC f fPt- +c;:,. m~9"01\11: f}OOT m-i11' Om:""'"m- t\1P"" ffPt-+c;T 1t\Oct 9"h11T hfPt- oo:"~T ;

th) h1f.1'~-I: h1lf.T OFt-m-"~ f"7;t-t\A m~9"f"7fi£1'OCOC.,...,f1C ooL'l.9" ;

2. The amalgamation or division or transfer of owner-ship of an undertaking shall not have the effect ofterminating a contract of employment.

SECTION ONETermination of Contract of

Employmentby Law or by Agreement

24. Termination of contractof Employment by LawA contract of employment shall terminate on thefollowing grounds:1) on the expiry of the period or on the completion of

the work where the contract of employment is for adefinite period or piece work.

2) upon the death of the worker.3) upon the retirement of the worker in accordance

with the relevant law.4) when the undertaking ceases operation permanently

for due to bankruptcy or for any other cause.5) when the worker is unable to work due to partial or

total permanent incapacity.

25. Termination of contract of Employment by Agreement1) The parties may ~eminate their contract of em-

ployment by agreement provided, however, thatwaiver by the worker of any of his rights under thelaw shall have no legal effect.

2) Termination by agreement shall be effective andbinding on the worker only where it is made inwriting.

SECTION TWOTermination of contract of Employment at the Request

of the Contracting PartiesSUB-SECTION ONE

Termination of contractof Employment by the Employer

26. General1) A contract of employment may only be terminated

where there are grounds connected with theworker's conduct or with objective circumstancesarising out of his ability to do his work or theorganizational or operational requirements of theundertaking.

2) The following shall not be deemed to constitutelegitimate grounds for the termination of a contractof employment:(a) his membership in a trade union or his

participation in its lawful activities.(b) his seeking or holding office as a worker's

representative;(c) his submission of grievance against the em-

ployer his participation in judicial or other.proceedings;

(d) his nationality, sex, religion, political outlook,martial status, race, colour, family respon-sibility, pregnancy, lineage line & desendentsfrom an .

.

27. Termination of contract of employment without Notice1) Unless otherwise determined by a collective

agreement ,a contract of employment shall be ter-minated without notice only on the followinggrounds;(a) repeated and unjustified tardiness despite war-

ning to that effect;(b) absence from work without good cause for a

period of five consecutive working days or tenworking days in any period of one month or

. thirty working days in a year;(c) deceitful or fradulent conduct in carrying out

his duties having regard to the gravity of thecase; .

'I~' !{if.!ift.?i ~y."MA ";J~'} ;JlLffJ 4!'I'C I~ VII'!:'} IJ; ""} I!tr1:& 'HI". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2461

ou) f&-f1.'} m~9" ffb" (}m- -OA~'?'� nov7i.."OOlJ'}~:lD-9" f"lPt.m- '}-nt."" m~'J° 1'}tI-n

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IP) IP&--"~:m- P't-,lD-'} I\OUP't-."', "1'I\":J' 'hfl\m-

fP't-. m-m.1: 111\0IJ*t.'I' n1-0t..), it'J°9"H'm~'J° np'&- J.'.,}O- m~'J° no-l\1: m1{i"1'ou'?t1I1"" h,,'m(}"lD- f9°C"" '1'&-""c.' ovm'}

0:J'"1' c"1.(f'} ;

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(1I'7.f*C'I'O"'- 'LH. f P' &- lD-'" fOlJ.* t. 'l'0""') 'J°tn

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1\) 1P&-'I'~lD- Om.'}""" ou;1'mn m~'J° n"t}A

1'~"" 9"n'} f"'- OP' &- m-'" f1'flJI\0""'} '?1..:1'

I\OUL?t'J° I\tll\<I:;1'lD- fOlJ~"1'A (flj c"1.1~;

ell) Yo'C~1: mJ.'. 1\,/\ {l:J' c"1.t,mc 1P&-1'~m- mJ.'.

"Jtf1. {1:1' .,..,m-C' l\ovP'&-"" L:J>f.~ "~(f'}c"1.<l>C;

ou) 1P&-1'~lD- fftllD- fP'&- ovf,-n ooot 'J°n'}f""

(}_(}t.1''� IP&-'I'~m-') mJ.'. 1\,/\ P' &- °'1t,mcfOlJ~Y:A lflj c"1.1~;

~. f~C~1:,} Yo'C~:1'ce "*9" m~'J° fP'&- 'h'}it:J>().0 OIJ.ou 1\h."t, fOlJ.h ,1'"'..,. 'JOn'}f.,."f f P' t-. m-A '}OOlJitm'}otf 1\0IJ*t.'I' oot 9"n'}f"" ~lf'l"';

u) 1P&-.,.?f"1' f"'(}OIJ~I1:fm-'} P' &-lJ'"1' OhkA'J°If., 000-1\- 0<1>'1';1''1 I\tll\<I:;1'm- fOlJ_fit.f.9"

flP&-1'?f"1' :,..,,, fOlJ,fith""A o-~:1' c"1.h(}"";

(d) misappropriation of the property or fund of theemployer with intent to procure for himself orto a third person undue enrichment;

(e) returning output which, despite the potential ofthe worker, is persistently below the qualitiesand quantities stipulated in the collectiveagreement or determined by the agreement ofthe two parties.

(f) responsibility for brawls or quarrels at the workplace having regard to the gravity of the case;

(g) conviction for an offence where such convic-tion renders him incapable for the post which heholds;

(h) responsibility for causing damage intentionallyor through gross negligence to any property ofthe employer or to another property which isdirectly connected with the work of the under-taking;

(i) commission of any of the unlawful activitiesreferred to in Article 14 Sub-Article (2);

0) absence from work due to a sentence of im-prisonment passed against the worker for morethan 30 days;

(k) commission of other offences stipulated in acollective agreement as grounds for terminatinga contract of employment without notice.

2. Where an employer terminates a contract of em-ployment in accordance with this Article, he shallgive written notice specifying the reasons for and thedate of termination.

3. the right of an employer to terminate contract ofemployment in accordance with this Article, shalllapse after 30 working days from the date theemployer knows the ground for the termination.

4. the grounds for suspension of a worker from dutybefore terminating the contract of employment of theworker in accordance with this Article may bedetermined by collective agreement, providedhowever, that the duration for suspension shall notexceed thirty working days.

28. Termination of contract of Employment with Notice1) The following grounds relating to the loss of

capacity of, and situations affecting, the worker shallconstitute good cause for terminating a contract ofemployment with notice:(a) the worker's manifest loss of capacity to per-

form the work to which he has been assigned; orhis lack of skill to continue his work as a resultof his refusal to take the opportunity of trainingprepared by the employer to upgrade his skill orafter having been trained, his inability toacquire the necessary skill;

(b) the worker is for reasons of health or disability,permanently unable to carry out his obligationsunder the contract of employment;

(c) the worker's unwillingness to move to a localityto which the undertaking moves;

(d) the post of the worker is cancelled for goodcause and the worker cannot be transferred toanother post;

2. the following grounds relating to the organizationalor operational requirements of the undertaking, shallconstitute good cause for the termination of acontract of employment with notice;(a) any event which entails direct and permanent

cessation of the worker's activities in part or inwhole resulting in the necessity of a reduction ofthe work force;

.,jt Ij'(,!if~!{ 4..1..&.A ~.?t"', .?tt.lfJ 4!'I'C 1!{ rta-t"" 1~ +1 litf:li '}.9". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2462

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r &. hlll!I\<k 1l4C.-r t)Atr., Il.,.C I ff\1il-r&.h7i1r&.CD- 1l.t-h;J-;J-f. hl1\.,. I't.~.(- fr&.CD- ODm1

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f+ODI\hi:-r1 flP&.+?f".f :,..,It r., rCq-rODh+Anf.'iCIl-r9"::

I' IltLtJ n1"'R" 1o-il n1"'R" IiiI "ff\1il-r&.h7i1r&." lII!I\-r :t.1~I OD1.,.(-I fflll-C th"L.(-I ffl:t.Cm~l1I fCD-Y"''(-l1I '(-A'(-f.I fOD."tl +h"e; 1\.1\9"+ODItItf. r&. fODr&.-rI fODI\aJ1'I flll!il'i-'i--rIflll!~ile; fODm.,1 p'&.1 f.aJ.9"&.A::

(b) withou~ prejudice to the provisions of Sub-Article 6 of Article 18, fall in demand for theproducts or services of the employer resultingin the reduction of the volume of the work andprofit of the undertaking and thereby resultingin the necessity of the reduction of the workforce;

(c) a decision to alter work methods or introducenew technology with a view to raise produc-tivity resulting in the reduction of the workforce.

..

3. Where the cancellation of a post affects a number ofworkers thereby constituting a reduction of workforce in accordance with Sub-Article (1) of Article29, the termination shall take place in compliancewith the requirements laid down in sub-article (3) ofArticle 29.

29. Reduction of Workers .

1) In this Proclamation "reduction of work force"means reduction of the work force of an undertakingfor any of the reasons provided for in sub-article (2)of Article 28 affecting a number of workersrepresenting at least ten percent of the number ofworkers employed or, in the case of an undertakingwhere the number of workers employed is betweentwenty and fifty, a reduction of workers affecting atleast five employees over a continuous period of notless than ten days.

2) The phrase "number of workers" referred to in Sub-Article (1) of this Article means the average numberof the workers employed by an employer concernedwithin the twelve months proceeding the date whenthe employer took measures of reduction of workers.

3) Whenever a reduction of work force takes placeaccording to Sub-Article (1) of Article 28, theemployer in consultation with trade union orrepresentative shall give for workers having skillsand higher rate of productivity priority of beingretained in their posts and, in the case of equal skilland rate of productiviy, the workers to be affectedfirst by the reduction shall be in the following order(a) subject to the provisons of (b) -(e) of this Sub-

Article, those having the shortest length ofservice in the undertaking;

(b) those who have fewer dependants;(c) ti!ose not covered under Sub-Article 3 (a) and

(b) of this Article;(d) those who are disabled by an employment

injury in the undertaking;(e) workers' representatives;(t) expectant mothers;

",

30. Exceptions1) The procedure laid down in this Proclamation shall

not apply to the reduction of workers due to normaldecrease in the volume of a construction work as aresult of its successive completion unless the reduc-tion affects workers employed for parts of the workbefore the work for which they are employed iscompleted.

2) In sub-article (1) of this Article, "constructionwork" includes the construction of a building, road,rail-way line, sea port, dam, bridge, installation ofmachinery and similar works of transformation,extension, repair or maintenance.

.,,, lIit!!f~[ IJ.6-A ~;Jt:" ;JtLlfJ4l1'CIII fl1-1;:"I~ +1 Iitf1J 'H". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2463

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SUB-SECTION TWOTermination by the Worker

31. Termination of Contract of Employment with NoticeWithout prejudice to Article 32 of this Proclamation, anyworker who has completed his probation period, may, bygiving thirty days prior notice to the employer, terminatehis contract of employment.

32. Termination of Contract of Employment without Notice1) The following shall be good cause to terminate a

contract of employment without notice;(a) if the employer has committed against the

worker any act contrary to his human dignityand morals or other acts punishable under thePenal Code;

(b) if, in the case of imminent danger threatning theworker's safety or health, the employer, havingbeen made aware of such danger, failed to actwithin the time limit in accordance with theearly warning given by the competent authorityor appropriate trade union or the worker himselfto avert the danger;

(c) if the employer has repeatedly failed to fulfillhis basic obligations towards the worker asprescribed under this Proclamation, collectiveagreements, work rules or other relevant laws.

2. Where a worker terminate his contract of em- '-'.ployment for the reasons referred to under SubArticle (1) of this Article, he shall inform theemployer in writting the reasons for termination andthe date on which the termination is to take effect.

33. Period of LimitationA worker's right to terminate his contract of employmentin accordance with Sub-Article (1) of Article 32 shalllapse after fifteen working days from the date on whichthe act occurred or ceased to exist.

CHAPTER THREECommon Provisions with Respect to

Termination of Contract of EmploymentSECTION ONE

Notice to Terminate a Contract of Employment

34. Procedure for Giving Notice1) Notice of termination required under the provisions

of this Proclamation shall be in writing. The noticeshall specify the reasons for the termination of thecontrat and the date on which the termination shalltake effect.

2) Notice of termination by the employer or hisrepresentative shall be handed to the worker inperson. Where it is not possible to find the worker orhe refuses to receive the notice, it shall be affixed onthe notice board in the work place of the worker for10 consecutive days.

3) Notice of termination by the worker shall be handedto the employer or his representative or delivered tohis office.

4) Notice of termination given to a worker by anemployer in accordance with Article 17 during thetime in which the contract of employment is suspen-ded shall be null and void.

1~' eif.jH~:s!! ~1vt-t:\ ~;Jt..,. ;JnlTJ ~1'C IIIfll'I;'''' I:s +1 Iitfii 'H". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2464

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35. Period of Notice1) Unless otherwise provided for in this Proclamation,

the period of notice given by the employer shall be asfollows:(a) one month in the case of a worker who has

completed his probation and has a period ofservice not exceeding one year;

. (b) two months in the case of a worker who has aperiod of service above one year to nine years.

(c) three months in the case of a worker who has aperiod of service of more than nine years;

(d) two months in the case of a worker who hascompleted his probation and whose contract ofemployment is terminated due to reduction ofwork force.

2) Not withstanding the provisions of Sub- Article (1) ofthis Article, the period of notice for a contract ofemployment for a definite period or piece work shallbe agreed upon by the parties in the said contract.

3) The period of notice fixed in this Proclamation shallrun from the first working day following the date onwhich notice is dully given.

4) The obligations of the parties deriving from thecontract of employment shall continue in forceduring the period of notice.

SECTION TWOPayment of Wages and other Payments on

Termination of Contract of Employment

36. Period of PaymentWhere a contract of employment is terminated, wagesand other payments connected with wages due to theworker shall be paid within seven working days from thedate of termination, provided, however, that the time ofpayment may be extended where the worker delays,because of his own fault to return property or any sum ofmoney which he received from or is due to the employer.37. Amount in Dispute

In the event of a dispute as to the amount claimed bythe worker the employer shall pay the worker thesum not in dispute within the time limit specifiedunder Article 36.

38. Effects of DelayWhere an employer fails to pay the sum due to the workerwithin the time limit specified under Article 36, thecompetent labour division of a court may order theworker to be paid his wage for the period of delay uptothree month's wage except where the delay is due tocauses beyond the control of the employer.

''',

SECTION THREESeverance pay and Compensation

39. General1) A worker who has completed his probation:

(a) Where his contractof employment is terminatedbecause the undertaking ceases operation per-manently due to bankruptcy or for any otherreason.

(b) Where his contract of Employment is ter-minated by the initation of the employer againstthe provision of law.

(c) Where he is reduced as per the conditiondescribed under this proclamation.

(d) Where he terminate his contract because hisemployer did things which hurts the workershuman honor and moral or the thing done by theemployer is deemed as an offence undex: thepenal code.

1~' lit!!f~~ l..1.t.A ~;Jt:r' ;JtLlIJ +''I"CII f'1'f:"" I~ +,Iitfji ~'9'" Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2465

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. (e) V.'here he terminate his contract because theemployer being informed of the danger thatthreats the security and health of the worker didnot take measures, or

(f) Where his contract of employment is terminatedbecause of reason of partial or total disabilityand is certified by medical board.Shall have the right to get severance pay fromthe employer

2) Where a worker dies before receiving severance pay,the severance pay shall be paid to his dependantsmentioned under Article 110(2).

3) The distribution of payment of severance pay todependents in accordance with this article shall beeffecte.d in the same manner as the payment ofdisablement benefit.

40. Amount of Severance PayThe severance pay referred to in Article 39 shall be:1) thirty times the average daily wages of the last week

of service for the first year of service; for the serviceof less than one year, severance pay shall becalculated in proportion to the period of service.

2) in the case of a worker who has served for more thanone year, payment shall be increased by one-third ofthe said sum referred to in sub-article 1of this Articlefor every additional year of service, provided that thetotal amount shall not exceed twelve month's wageof the worker.

3) Where a contract of employment is terminated inaccordance with Articles 24(4) and 29, the workershall be paid, in addition to payments under sub-articles 1 and 2 of this Article, sum equal to 60multiplied by his average daily wage of the last weekof service.

41. Compensation for Terinination of Contract of Em-ployment with out NoticeA worker who terminates his contract of employment inaccordance with Article 32(1) shall be entitled, inaddition to the severance pay referred to in Article 40, to apayment of compensation, which shall be thirty times hisdaily wages of the last week of service. This provisionshall also apply to a worker covered by the relevantpension law.

SECTION FOUREffects of Unlawful Termination of Contract of Employment

42. GeneralWhere an employer or a worker fails to comply with therequirements laid down in this Proclamation or otherrelevant law regarding termination, the termination shallbe unlawful.

43. Reinstatement or Compensation of a Worker in the Caseof Unlwful Termination1) Where a contract of employment is terminated

because of those grounds mentioned under sub-article (2) of Article 26, the employer shall beobliged to reinstate the worker, provided, that theworker shall have the right to payment of compen-sation if he wishes to leave his employment.

2) Subject to sub-article 1 of this Article, where aworker's contract of employment is terminatedcontrary to the provisions of Articles 24, 25, 27, 28and 29 of this Proclamation, the labour disputesettlement tribunal may order the reinstatement ofthe worker or the payment of compensation.

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3) Notwithstanding sub-article 2 of this Article, thelabour dispute settlement tribunal may order thedismissal of the worker upon payment of compen-sation even if the worker demands re-instatmentwhere it belives that the continui1.tion of the par-ticular worker employer relations, by its nature islikely to give rise to serious difficulties. Similarly,where a worker who, after obtaining judgment of re-instatement in his favour decline to be re-instated,the labour settlement tribunal may order the dismis-sal of the worker upon payment of full compensationor fair compensation for the inconvenience heincurred having regard to the nature of the work andother circumstances of the case.

4) The compensation to be paid under sub-articles (1),(2) or (3) of this Article shall, in addition to theseverance pay referred to in Articles 39-40, be asfollows; This provision shall also apply to a workerconvered by the relevant pension law.a) one hundred eighty times the average daily

wages and a sum equal to his remuneration forthe appropriate notice period in accordance withArticle 44 in the case of unlawful termination ofa contract of employment for an indefiniteperiod;

b) a sum equal to his wages which the workerwould have obtained if the contract of em-ployment has lasted upto its date of expiry Orcompletion provided, however, that such com-'" r

pensation shall not exceed one hundered eightytimes the average daily wage in the case ofunlawful termination of a contract of em-ployment for a definite period or for piece work.

5) Where the first intance court orders the reinstatementof the worker in accordance with Sub-Articles (1)and (2) of this Article, the court shall order thepayment of back -pay not exceeding 6 months wage.If the decision of reinstatement is confirmed by theappellate court it shall order payment ofback pay notexceeding one year.

44. Exceptions

Notwithstanding the provisions of Article 43, non-com-pliance by the employer with the notice requirementsspecified under Article 35 shall only result in thepayment by the employer, wages in Leu of the noticeperiod, in addition to any other compensation providedfor under Article 40 of this Proclamation.

45. Liability of the Worker to pay compensation1) A worker who terminates his contract of em-

ployment contrary to the provisions of Article 31 or35(2) shall be liable to pay compensation to theemployer.

2) The compensation payable by the worker in accor-dance with Sub-Article (1) of this Article, shall notexceed thirty days wages of the worker.

CHAPTER FOURSpecial ContractsSECTION ONE

Home Work Contract

46. Formation of Contract

1) There shall be a home work contract when a personhabitually performs work for anemployer in hishome or any other place freely chosen by him inreturn for wages without any direct supervision ordirection by the employer.

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2) An agrc.ment for the saleof raw materialsor tools byan employer to a home worker and the resale of theproducts to the employer or any other similararrangements made between the employer and thehome worker shall be deemed a homework contract.

3) The contract concluded between a home worker andan employer shall be deemed to be made for adefinite period or piece-work.

4) The Minister may, in consultation with the concer-ned organs, prescribed by directives the provisionsof this Proclamation that shall apply to homeworkers and manner of their applications.

47. Keeping of RecordsAn employer who employs a worker on the basis of ahome work contract shall keep a register containing thefollowing and other relevant particulars;1) full name, age, marital status and address of the

worker;2) the address where the work is to be carried out;3) the type, price, quality and quantity of material

supplied by the employer to the worker;4) the type of work, quality and quantity ordered;5) the time and place of delivery of the product or

material;6) amount and manner of payment.

SECTION TWOContractof Apprenticeship

48. Formation of Contract1) There shall be a contract of apprenticeship when an

employer agrees to give a person complete andsystematic training in a given occupation related tothe function of his undertaking in accordance withthe skills of the trade and the person in return agreesto obey the instruction given to carry out the trainingand works related thereto.

2) The contract of apprenticeship shall be concludedwith the person whose age is not less than fourteenyears.

3) The contract of apprenticeship and its modificationsshall be valid only where it is made in writing andattested to by the Ministry.

.49. Contents of the Contract

A contract of apprenticeship shall specify at least thefollowing:1) The nature and duration of the training of appren-

ticeship;2) the remuneration to be paid during the training;3) the conditions of work.

50. Obligations of the Parties1) The apprentice shall diligently follow the training

and endeavour to complete it successfully.2) The employer shall not assign the apprentice on an

occupation, which is not related and does notcontribute to his training.

51. Termination of a Contract1) A contract of apprenticeship shall terminate on the

following grounds:(a) at the expiry of the period fixed for the

apprenticeship;(b) by giving notice by either of the contracting

party;(c) when the apprentice terminates the contract

without notice.

'~'r

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2. The employer may terminate the contract of appren-ticeship by giving notice referred to under Sub.Article (1) (b) of this Article, where:(a) he is no longer able to discharge his

obligations on account of change of work orother causes beyond his control; or

(b) the apprentice violates the disciplinary rules ofthe undertaking; or

(c) the apprentice is permanently incapable ofcontinuing his training or completing histraining within the specified time limit.

3. The apprentice may terminate the contract of appren-ticeship by giving notice of termination referred tounder Sub-Article (1) (b) of this Article, where;(a) the employer fails to observe his obligations

under the contract or this Proclamation, or(b) the apprentice has good cause relating to his

health or family or other similar grounds.4) The apprentice may terminate the contract without

giving notice in accordance with Sub-Article (1) (c)of this Article where:(a) he proves, by appropriate medical certificate,

that he cannot discharge his obligations withoutseriously endangering his health; or

(b) the employer unilaterally changes the terms ofthe contract.

5) The provisions of this Proclamation regardingseverance pay, compensation and reinstatement shallnot be applicable to contracts of apprenticeship.

52. CertificateThe employer shall, upon the termination of the contractof apprenticeship, give to the apprentice a certificate,which indicates the occupation he has been trained in,the duration of the training and other similar particulars.

PART THREEWages

CHAPTER ONEDetermination of Wages

"'-,

53. General1) "Wages" means the regular payment to which the

worker is entitled in return for the performance of thework that he performs under a contract of em-ployment.

2) For the purposes of this Proclamation, the followingpayments shall not be considered as wages:(a) over-time pay;(b) amount received by way of per-diems, hardship

allowances, transport allowance, transfer ex-penses, and similar allowance payable to theworker on the occasion of travel or change ofhis residence;

(c) bonus;(d) commission;(e) other incentives paid for additional work

results;t) service charge received from customers.

54. Conditions of Payments for Idle Time1) Unless otherwise provided for in this Proclamation

or the relevant law, wages shall be paid only for workdone.

2) Nowithstanding Sub-Article (1) of this Article, aworker shall be entitled to his wage if he was ready towork but, because of interruptions in supply of toolsand row materials or for reasons not attributable tohim was not able to work.

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CHAPTER TWOMode and Execution of Payment'

55. General

Wages shall be paid in cash, provided, however, thatwhere the employer and worker so agree, it may be paidin kind. Wages paid in kind may not exceed the marketvalue in the area of the payment in kind and in no casemay exceed 30% of the wages paid in cash.

56. Execution of Payments

1) Unless otherwise agreed, wages shall be paid onworking day and at the place of work.

2) In case where the day of payment mentioned in Sub-Article (1) of this Article falls on Sunday or a publicholiday, the day of payment shall fall on thepreceeding working day.

57. Payment in Person

Unless otherwise provided by law or collectiveagreement, wages shall be paid directly to the worker or ,to a person delegated by him.

58. Time of Payment

Wages shall be paid at such intervals as are provided forby law or collective agreement or work rules or contractof employment.

59. Deduction from Wages

1) The employer shall not deduct from, attach or setoffthe wages of the worker except where it is provided'otherwise by law or collective agreement or workrules or in accordance with a court order or a writtenagreement of the worker.

2) The amount in aggregate that may be deducted at anyone time, from the worker's wage shall in no caseexceed one-third of his monthly wages.

60. Keeping Record of Payment

1) The employer shall keep a register of paymentspecifing the gross pay and method of calculation ofthe wages, other variable remunerations, the amountand type of deduction, the net pay and other relevantparticulars, unless there is a special arrangement, onwhich the signature of the worker is affixed.

2) The employer shall have the obligation to make theregister accessible and to explain the entries there of,to the worker at his request.

3) The fact that worker has received without protest thenet amount indicated on the register shall notconstitute waiver of his right to any part of his wagesthat was due.

PART FOURHours of work, weekly Rest and public Holidays

CHAPTER ONEHours of work

SECTION ONENormal Hours of Work

61. Maximum Daily or weekly Hours of Work

1) Normal hours of work shall not exceed eighthours(8) a day or fourty-eight( 48) hours a week.

2) In this proclamation, "Normal hours of work"means the time during which a worker actuallyperforms work or avails himself for work in accor-dance with law, collective agreement or work rules.

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62. Reduction of Normal Hours of Work

1) The Minister may, issue directives reducing normal

hours of work for economic sectors, industries oroccupations where there are special cunditions ofwork.

2) Reductions of normal hours of work under thisproclamation shall not entail reduction in the wagesof the worker.

63. Arrangement of Weekly hours of work

Hours of work shall spread equally over the working daysof a week, provided, however, where the nature of thework so requires hours of work in anyone of the workingdays may be shortened and the differences be distributedover the remaining days of the week without extendingthe daily limits of eight hours by more than two hours.

64. A veraging of Normal Hours of Work

Where the circumstances in which the work has to becaITied on are such that normal hours of work cannot bedistributed evenly over the individual week, normalhours of work may be calculated as an average over aperiod longer than one week, provided, however that theaverage number of hours over a period shall not exceedeight hours per day or forty eight hours per week.

65. bxcJusion

Unless otherwise provided in a collective agreement orwork rules the pr6visions of this proclamation shall notapply to commercial travelers or representatives.

'''-''f

SECTION TWO

Overtime

;j;'k m.pl\.I\.I

66. General

j!. {HlU htp~ .f:'l;J'1.911' Oow/..} h<l'en(}'1m- f<"'"1) Work done in excess of the normal daily hours of

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~. 01\,4'X' :!;?!: ~~[: he; :!.:~ o.,-en(i'1en, OIJ,P/"}2) Work done within the limits referred to in Articles

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67. Circllmst~nces in which Overtime Work is premissible

1) A worker may not be compelled to work over-time,however, over-time may be worked whenever theemployer cannot be expected to resort to othermeasures and only where there is:-

(a) accident, actual or threatened(b) force-majeure;(c) urgent work;(d) Substitution of absent workers assigned on

work that runs continously without interrup-tion.

2) Notwithstanding the provisions of sub-article 1 ofthis Article, overtime work of an individual workerdue to an urgent work shall not exceed 2 hours in adc:.yor 20 hour in a month or 100 hours in a year.

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68. Overtime Payment'". . .

1) In addition to his normal wage, a worker ~ho worKsover-time shall be entitled at least to thefoHowiri~'payments. .

(a) in the case of work done between six o'clock (6a.m.) in the morning and ten o'clock{lOp.m.)in the evening, at the. rate of one and .{)nequarter (1114)multiplied by the ordinary hourlyrate;

(b) in the case of night time work bet~een ten

o'clock in the evening (10 p.m.) and sixo'clock in the morning (6 a.m.), at the rate ofone ~nd one half (lln) multiplied by theordinary hourly rate;

'.(c) in the case of work done on weekly r~st day, at

the rate of two (2) multiplied by the ordinaryhourly rate;

(d) in the case of work done on public holiday, at

the rate of two and one half (21fl)multipfied bythe ordinary hourly rate.

.

2. Payment for over-time work shall be effected on theday fixed for wage pay day.

CHAPTER.TWOWeekly Rest .

'-"f

69. General

1) A worker shall be entitled to a weekly rest periodconsisting of not less than twenty-four non-interrup-ted hours in the course of each period of seven days.

2) Unless otherwise determined by a collectiveagreement, the weekly rest period provided fot insub-article (1) of this Article shall, whenever pes-sible;(a) fall on a Sunday;(b) be granted simultaneously to all of the workers

of the undertaking.

'\3) The weekly rest period shan be calculated as to

include the period from 6 a.m. to the next'6 a.m.

70. Special Weekly Rest Day

1) Where the nature of the work or the serviceperformed by the employer is such that the weeklyrest cannot fan on a Sunday another day maybemade a weekly rest as a substitute.

'"

.,

2) The provisions of sub-article (1) of this Article shallbe applicable to the following and similar activhies:

.

(a) work that has to supply the necessities oflifeotmeet the health, recreational or,' ctdt,uralrequirements of the general public; .' '

(b) essential public services such as elecmcity!water, communication, transport andsii!liIarothers;

,

(c) work which, because of its nature or fortechnical reasons, if interrupted or postponedcould cause difficulties or damages.

71. Work Done on Weekly Rest Days

1) A worker may be required to work on any weeklyrest day only where it is necessary to avoid serious,interference with the ordinary working of, ~he ,

undertaking in the case of:

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(a) accident, actual or threatened;(b) force majeure; .

(c) urgent work to be done. "2) Subject to the provision of Article 68(c), a worker

who,by virtue of the provisions of this Chapter,works on a weekly rest day, shall be entitled to aweekly rest period; provided, however, that he shallbe compensated in the form of money if his contract

,. of employment is terminated before he is granted thecompensatory rest period.

72. Application

1) The provisions of this chapter shall not apply to

commercial travellers or representatives.2) The Minist~r may issue directives determining the

special application of the provisions of this Chapterto workers who are directly engaged in the carriageof passengers and goods.

CHAPTER THREEPublic Holidays

73. General

Public holidays observed under the relevant law shall bepaid public holidays

74. Non-Reduction of Wages for Public Holidays

1) A worker who is paid on a monthly basis shall incure

no reduction, in,his wages on account of having notworked on public holiday.

2) The payment of wages'on a public holiday to a

worker other than the payment mentioned undersub-article (1) of this Article shall be determined byhis contract of employment or collective agreement.

75. PaYf!1ent fOf wQrk on I!ublic Holidays

1) A worker shall be paid his hourly wages multipliedby two for each hour of work on a public holiday.

2) Where a public holiday coincides with another

publi~ holiday or falls on a rest daydesignated bythis 'proclamlltion or any other special law, the. ! .workers shall be entitled to only one payment forworking on such a day.

""-"f

PARTFIVELeave

CHAPTER DNEAnnual Leave

76. General

~) An agreement by a worker to waive in any mannerhis right to annualleave shall be null and viod.

2) Unless otherwise provided in this Proclamation, it is

prohibited to pay wages in lieu of the annualleave.

77. Amount of Animal Leave

I) A worker pursuant to this Article shall be entitled to

uninterrupted annual leave with pay which shall inno case be less than:a) fourteen (14) working days for the first one year

of service;b) fou~een, q4) working daysplus one working

day for every additional year of service.

'I~' i{iQ!x<:-r ~1..M\ '1,;Jt.} ::m.ffJ <I!'I'CIi{ fi)'f:'} It. +1 liixji '}.9".

~.

Federal Negarit Gazeta - No. 12 261hFebruary 2004-Page 2473

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-u-.

2) Notwithstanding the provisions of sub-article (1) of

this Article, addditional annual leave with pay, forworkers engaged in a work which is particularlyardous or the condition in which it is done is un-healthy, may be fixed in a collective agreement.

3) The wage a worker receives during his annual leave

shall be equal to what he would have received if hehad continued to work.

4) For purpose of determining the qualifying period of

service required for the entitlement of an annualleave, 26 days of service in an undertaking shall bedeemed to be equivalent to one month of em-ployment.

5) A worker whose contract of employment is ter-

minated under this Proclamation is entitled to his payfor the leave he has not taken.

6) Where the length of service of a worker does not

qualify for an annual leave provided for in thisArticle, the worker shall be entitled to an annualleave proportion to the length of his service.

78. Granting of Leave

1) A worker shall be granted his first period of leave

after one year of service and his next and subsequentperiod of leave in the course of each calendar year.

2) An employer shall grant a worker his leave in

accordance with a leave schedule in the course of thecalendar year in which it becomes due.

3) The leave schedule referred to in sub-article (2) of

this Article shall be drown up by the employer withdue regard as far as possible to:a) the wish of the worker; andb) the need for maintaining the normal functioning

.of his undertaking.

'''.

79. Dividing and Postponding Annual Leave

1) Nothwithstanding the provisions of ArtiCle 77, if a

worker requests and the employer agrees, his leavemay be granted in two parts.

2) Annual leave may be postponed when the worker

requests and the employer agrees.3) An employer may, for reasons dictated by the work

conditions of the undertaking, postpone the date ofkave of a worker.

4) Where a worker falls sick during his annual leave,

Articles 85 and 86 of this Proclamation shall apply.5) Any leave postponed in accordance with sub-articles

(2) and (3) of this Article, shall not be posponed for

more than two years.

80. Recalling of a worker on leave

1) A worker who is on leave may be recalled only

where unforeseen circumstances require hispresence at his post.

2) A worker who is recalled from leave shall be entitled

to a payment covering the remainder of his leave,excluding the time lost for the trip.

3) The employer shall defray the transport expenses

incurred by the worker as direct consequences of hisbeing recalled and per-diem.

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CHAPTER TWOSpecial Leave

81. Leave for Family Events

1) A worker shall be entitled to leave with pay for threeworking days when;a) he concludes marriage; orb) his spouse or descendants or ascendants or

another relative, whether by affinity or consan-guinity upto the second degree dies.

2) A worker shall be entitled to leave without pay forupto 5 consecutive days in the case of exceptionaland serious events.

82. Union Leave

Leaders of trade unions shall be entitled to leave with payfor the purpose of presenting cases in labour disputes,negotiating collective agreements, attending unionmeetings, seminars or training courses. The manner ofgranting such leave may be determined in a collectiveagreement.

83. Leave for Special Purposes

1) A workers who appears at hearings before bodiescompetent to hear labour disputes or to enforcelabour laws shall be granted leave with pay only forthe time utilized for the said purpose.

2) A worker who exercises his civil rights or duties"-,shall be granted leave with pay, only for the timeutilized for the said purpose.

3) The manner in which educational or training leave isto be granted and the form and extent of the financialassistance to be given may be determined in acollective agreement or work rules.

84. Notification

A worker wishing to take leave in accordance with theprovisions of this Chapter shall notify the employer inadvance and present the necessary supporting evidencewhen the employer requests him.

CHAPTER THREESick Leave

85. Duration of Leave

1) Where a worker, after having completed hisprobation, is rendered incapable of work owing tosickness other than resulting from employmentinjury, he shall be entitled to a sick leave.

2) The leave referred to in sub-article (1) of this Articleshall, in no case, be more than six months countedconsecutively or separately in the course of anytwelve moths period starting from the first day of hissickness.

3) Where a worker absents himself from work ongrounds of sickness, he shall, except where theemployer is in a position to be aware of the sicknessor it is impractical, notify the employer the dayfollowing his absence.

4) Unless the collective agreement provide otherwise. aworker shall be entitled to a sick leave uponpresenting a valid medical certificate given by amedical organization recognized by the Govern-ment.

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86. PaymentThe period of sick leave provided for in Article 85 shallbe granted in the following manner:1) the first one month with 100% of his wages;2) the next two months with 50% of his wage;3) the next three months without pay.

PART SIXWorking Condition of Women and

Young Workers

CHAPTER ONEWorking Conditions of Women

87. General

i ) Women shall not be discriminated against as regardsemployment and payment, on the basis of their sex.

2) It is prohibited to employ women on type of workthat may be listed by the Minister to be particularlyardous or harmful to their health.

3) No pregnant woman shall be assigned to night workbetween 10 p.m. and 6 a.m. or be employed onovertime work.

4) No pregnant woman shall be given an asignmentoutside her permanent place of work, provided,however, she shall be transferred to another place ofwork if her job is dangerous to her health orpregnancy as ascertained by a medical doctor.

5) An employer shall not terminate the contract ofemployment of a women during her pregnancy anduntil four months of her confinement.

6) Notwith standing the provisions of sub-article (5) of '"this Article, the contract of employment may beterminated for reasons specified under Articles 25,27 and 29 (3) if it is not related to giving of birth andpregnancy,

88. Maternity Leave1) An employer shall grant leave to a pregnant woman

worker without deducting her wages, for medicalexamination connected with her pregnancy,provided, however, that she is obliged to present amedical certificate of her examination.

2) A pregnant woman worker shall, upon the recom-mendation of a medical doctor, be entitled to a leavewith pay.

3) A woman worker shall be granted a period of 30consecutive days of leave with pay preceding thepresumed date of her confinement and a period of 60consecutive days of leave after her confinement.

4) Where a pregnant woman worker does not deliverwithin the 30 days of her prenatal leave she is entitledto an additional leave until her confinement inaccordance with sub-article 2 of this Article. Ifdelivery takes place before the 30 days period haselapsed, the post-natal leave under sub-article 3 ofthis Article shall commence.

CHAPTER TWOWorking Conditions of Young Workers

89. General1) For the purpose of this Prpclamation, "Young

worker" means a person who has attained the age of14 but is not over the age of 18 years.

2) It is prohibited to employ persons under 14 years ofage.

3) It is prohibited to employ young workers which onaccount of its nature or due to the condition in whichit is carried out, endangers the life or health of theyoung workers performing it.

4) The Minister may prescribe the list of activitiesprohibited to young worker which shall include inparticular:

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(a) work in the transport of passengers and goodsby road, railway, air and internal waterway,docksides and warehouses involving heavyweight liftings, pulling or pushing or any otherrelated type of labour;

(b) work conncected with electric powergeneration plants transformers or transmission,lines;

(c) underground work, such as mines, quarries andsimilar works;

(d) work in sewers and digging tunnels.5) The provision~f sub-article (4) of this Article shall

not apply to work performed by young workersfollowing courses in vocational schools that areapproved and inspected by the competent authority.

90. Limits of Hours of Work

Normal hours of work for young workers shall notexceed seven hours a day.

91. Night and Overtime Work

It is prohibited to employ young workers on:1) night work between 10 p.m. and 6 a.m.;2) overtime work;3) weekly rest days; or4) public holidays.

PART SEVENOccupational Safety, Health and Working Environment

CHAPTER ONEPreventive Measures

92. Obligations of an EmployerAn employer shall take the necessary measure tosafeguard adequately the health and safety of theworkers; he shall in particular:1) comply with the occupational health and safety

requirements provided for in this Proclamation;2) take appropriate steps to ensure that workers are

properly instructed and notified concerning thehazards of their respective occupations and theprecautions necessary to aviod accident and injury tohealth; ensure that directives are given and alsoassign safety officer; establish an occupational,safety and health committee of which the commit-tee's establishment, shall be determined by a direc-.tive issued by the Minister;

3) provide workers with protective equipment, clothingand other materials and instruct them of its use;

4) register employment accident and occupationaldiseases and notify the labour inspection of same;

5) arrange, according to the nature of the work, at hisown expenses for the medical examination of newlyemployed workers and for those workers engaged inhazardous work, as may be necessary.

6) ensure that the work place and pernrises do not causedanger to the health and safety of the workers;

7) take appropriate pre-executions to insure that all theprocesses of work shall not be a source or cause ofphysical, chemical, biological, ergonomical andpsychological hazards to the health and safety of theworkers;

8) implement the directives issued by the appropriateauthority in accordance with this Proclamation.

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93. Obligations of a workerA worker shall:1) co-operate in the formulation of work rules to

safeguard the workers health and safety, and im-plement same.

2) inform forthwith to the employer any defect relatedto the appliances used and injury to health and safetyof the workers that he discovers in the undertaking.

3) report to the employer any situation which he mayhave reason to believe could present a hazard andwhich he c~not avoid on his own any accident orinjury to health which arises in the course of or inconnection with work.

4) make proper use of all safeguards, safety devicesand other appliance furnished for the protection ofhis health or safety and for the protection of thehealth and safety of others.

5) obey all health and safety instructions issued by theemployer or by the competent authority.

94. Prohibition

No worker shall:1) interfere with, remove, displace, damage or destroy

any safety devices or other appliances furnished forhis protection or the protection of others; or

2) obstruct any method or process adopted with a view

to minimizing occupational hazard.

CHAPTER TWOOccupational Injuries

SECTION ONELiability

95. General

1) Subject to the provisions of the relevant pension law,the provisions of this Chapter shall apply to workerswhere an employment injury is sustained by aworker during or in connection with the performanceof his work.

2) For the purpose of this Proclamation, "occupationalinjury" tneans an employment accident or oc-cupational disease.

96. Liability Irrespective of Fault

1) The employer shall be liable, irrespective offault, foremployment injuries sustained by his worker andsuch liability shall be determined in a accordancewith the provisions of this Chapter.

2) The employer shall not be liable for any injuryintentionally caused by the injured worker himself;any injury resulting from the following acts inparticular shall be deemed to be intentionally causedby the worker:(a) non-obedience of express safety instructions or

non-observance of the provisions of accidentprevention rule specifically issued by the em-ployer; or

(b) reporting to work in a state of intoxication thatprevents him from properly regulating his bodyor understanding.

3) The provsions of sub-article (1) of this Article shallnot affect the right of a worker to claim damages inaccordance with the relevant law where an oc-.cupational injury is a result of fault on the part of theemployer.

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97. Occupational AccidentFor the purpose of this Proclamation "Occupationalaccident" means any organic injury or functional disor-der sustained by a worker as a result of any causeextraneous to the injured worker or any effort he makesduring or in connection with the performance of his workand includes;(a) any injury sustained by a worker while carrying out

the employer's order, even away from the workplace or outside his normal hours of work;

(b) any injury sustaiyed by a worker before or after hiswork or duing any interuption of work if he ispresent in the work place or the premises of theundertaking by reason of his duties in connectionwith his work;

(c) any injury sustained by a worker while he isprecceding to or from place of work in a transportservice vehicle provided by the undertaking whichis avilable for the common use of its workers or in avehicle hired and expressly destined by the under-taking for the same purpose;

(d) any injury sustained by a worker as a result of anaction of the employer or a third party during theperformance of his work.

98. Occupational Disease1) For the purpose of this Proclama~ion an "oc-

cupational disease" means any pathological con-dition whether caused by physical, chemical orbiological agents which arises as consequence of:(a) the type of work performed by the worker; or(b) the surroundings in which the worker is obliged

to work duirng a certain period prior to the datein which the disease become evident.

2) Occupational disease shall not include endemic orepidemic disease which are prevalent contracted inthe area where the work is done, except in the case ofworkers exclusively engaged in combating suchdiseases by reason of their occupation.

3) The minister shall in consultation with the concernedauthority issue, directives which contain scheduleslisting diseases to be of occupational origin. The saidschedule shall be revised at least every five years.

4) The occurrence of any of the deases listed in therelevant schedule on any worker having been en-gaged in anyone of the corresponding types of workspecified therein, shall by itself, constitute sufficientproof of the occupational origin of the disease.

5) Notwithstanding sub-article (4) ofthis Article, proofshall be premitted to establish the occupationalorigin of a disease not listed in the relevant scheduleand of diseases listed when they manifest themselvesunder conditions different from those establishing apresumption of their occupational origin.

6) In the absence of proof to the contrary, any diseasewhich occurs frequently only to persons employed incertain occupations shall be presumed to be of anoccupational origin where the worker suffering fromsuch a disease was engaged insuch 3n occupationand the existence of the disease is ascertained by amedica] doctor.

7) The date on which an occupation] disease becameevident, i.e. the first date on which the workerbecame incapacitated or the date of the first medicaldiagnosis of the disease or the date of the injuredworker's death, shall be considered as the date onwhich an employment injury occurred.

'IX' ~ir.!i~{~!i &uY..MA 't;J{,'} ;J/L"I '1~'1'C:r:~ \,11'1;')' L'; ,"'} nn:t4 'Ho.

~I.:'

Federal Negarit Gazeta - No, 12 26thFebruary 2004-Page 2479

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8) Where a worker after being cured from an occupationaldisease listed in the relevant schedule, contracts thedisease again as a result of his being engaged in anyoneof the corresponding work specified in the said list, itshall be presumed that he has contracted a freshoccupational disease.

SECTION TWODegree of Disablement

99. General I

1) "disablement" Jmeans any employment injury asaconsequence of which there is a decrease or loss ofcapacity to work.

2) Disablement shall have the followiwng effects:

(a) temporary disablement(b) permanent partial disablement(c) permanent total disablement and(d) death.

100. Temporary DisablementTemporary disablement results from the reducation for alimited period of time of the worker's capacity for workpartially or totally.

101. Permanent Partial or Total Disablement1) "Permanent partial disablement" means incurable

empoyment injury decreasing the injured worker'scapacity.

2) "Permanent total disablement" means incurableemployment injury, which prevents the injuredworker from engagding in any kind of remuneratedwork.

3) Injuries which, although not resulting in incapacityfor work, cause serious mutilation or disfigurementof the inujured person shall be considered per-manent partial disablement, for the purpose ofcompensation and other benefits.

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/if-/i'

/i~~'Assessment of Disablement

; \ The degree of permanent total or partial disablement

shall he fixed in accordance with the assessmenttable of disablement prescribed by directives issuedby the Minister.

2) The degree of disablement shall be assessed inaccor-dance with the assessment table provided for in sub-article (1) of this Article, by a competent medicalboard. The board shall determine the extent of thedegree of disablement as far as possible withintwelve months form the date of injury,

3) Disablement which has been assessed may bereviewed in accordance with sub-articles (1) and (2)of this Article where the worker's condition de-teriorates or improves or is wrongly diagonised:(a) on the initation of the appropriate authority, or(b) at the request of the worker or employer

concerned.4) Where the result of the review warrants it, the rights

of the worker to a disablement benefit shall berecognized or withdrawn or that the rate payableincrease or reduced, as the case may be.

5) Where a worker who suffered an imployment injurysustains a further employment injury, hisdisablement shall be reassessed in light of his newcircumstances.

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CHAPTER THREEBenefits in the Case of Employment Injuries

SECTION ONEGENERAL

103. Payment of BenefitsInjury benefits shall be paid in accordance with theprovisions of this Chapter.

104. Special Obligation1) An employer shall have to execute the following

obligations:(a) to provide the injured works with first aid in

time;(b) to carry the injured worker by an appropriate

means of transport to the nearest medicalcenter;

(c) to notify the occurrence to the appropriate

organ in accordance with the directives issuedby the minister.

2) The employer shall have the obligation to pay the

funeral expenses specified under Article 110 (1)(b).

SECTION TWOMedical Benefits

105, Types of Benefits

Where a worker sustains employment injury, theemployer shall cover the following expenses:1) general and specialized medical and surgical care;2) hospital and pharmaceutical care;3) any necessary prosthetic or orthopedic appliances.

106. Duration of BenefitMedical benefits shall be withdrawn in accordance withthe decisions of the Medical Board.

SECTION THREEVarious Kinds of Cash Beneftis

107. General1) A work who has sustained employment injury shall

be entitled to :(a) periodical payment while he is temporarily

disabled;(b) disablement pension or gratuity or compen-

sation where he sustains permanentdisablement;

(c) survivors' pension gratify or compensasion to

his dependant where he dies.2) Periodical payment may be suspended where a

worker who has claimed or is receiving same:(a) refuses or neglects to submit himself to

medical examination or in any way inten-tionally obstructs or unnecessarily delays suchexamination;

(b) behaves in a manner calculated to retard his

recovery; or(c) violates the directives issued by the com-

petent authority for the conduct of injuredworkers.

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3) As soon as the circumstances that occasioned thesuspension ceases, the periodical payment shallrecommence, provided, however that there shallbe no entitlement to back-pay for the period ofsuspensIOn.

108. Periodical Payment1) The employer shall pay for one year the

periodical payment mentioned in Article 107 (1)(a).

2) The Periodical payments referred to in sub-Ar-ticle (1) of this Article shall be at the rate of fullwage of the worker previous average yearlywages during the first three months following thedate of injury, not less than 75% (seventy five percent) of the worker previous average yearlywages during the next three months following thedate of injury and not less than 50% (fifty percent) of his previous average yearly wages for theremaining six months.

3) Periodical payments shall cease whichever of thefollowing takes place first:(a) when the worker is medically certified to be

no longer disabled;(b) on the day the worker becomes entitled to

disablement pension or gratuity;c) twelve months from the date the worker

stopped work.

109. Disablement Payments1) Unless otherwise provided for in a collective

agreement disablement benefits payable to workersof state enterprises covered under this Proclamationshall be in accordance with the insurance schemearranged by the undertaking or pensions law.Where the undertaking does not have any insurancearrangement, the pension law shall apply toworkers covered under public pension law.

2) An employer shall pay a lump sum of disablementcompensation to workers who are not covered bythe pension law.

3) The amount of the disablement compensasion to bepaid by the employer shall be:(a) where the injury sustained by the worker is

permanent total disablement, a sum equal tofive times his annual wages;

b) where the injury sustained by the worker isbelow permanent total disablement a sumproportionate to the degree of disablementcalculated on the basis of the compensasionprovided for in Sub-Article (3) (a) of thisArticle.

4) Where a worker who has sustained permanentdisablement was at the date of the injury onapprentice, his disablement compensasion payablein accordance with Sub-Article (2) of this Article,shall be calculated by reference to the wages whichhe would probably have been receiving as aqualified workman after the end of his studies.

110. Dependants' Benefits1) Where a worker or an apprentice dies as a result of

an employment injury, the following benefits shallbe payable:(a) dependant's compensation in accordance with

the provisions of Sub-Articles (2) and (3) ofthis Article; and

(b) subject to the provisions of a collectiveagreement or work rules, payment for funeralexpenses which shall be not less than twomonth wages of the worker.

2) The following shall be considered dependants:

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(a) the worker's widow or widower;(b) children of the deceased worker who are under

eighteen years of age;(c) any parent who was being supported by the

deceased worker.3) The amount of the dependants compensation for

workers not covered by the Public servants pensionlaw, shall be a Sum equal to five times the annualsalary of the deceased and for those stipulatedunder Sub-Art 2 of this Article by the employer atonce;(a) 50% (fifty percent) for the deceased worker's

lawful husband or wife;(b) 10% (ten percent) each for the deceased

worker's children who are below the age offifteen years old;

(c) 10% (ten percent) each for the deceasedworker's parents who were being suported byhim;

4) If the total of dependents' compensation calculatedin accordance with Sub-Article 3 ofthis Article is inexcess of one hundred percent (100%) of the totalamount to be divided, the amount of compensationof each dependent shall be proportionately reducedby the amount required to reduce the total amountpayable to one hundred percent (100%) of the saidtotal amount. If the total of dependents compen-sation is less than one hundred percent (100%) ofthe total amounts to be divided, the amounts ofcompensation of each dependent shall be propor-tionately increase by the amount payable to onehundred percent (100%).

111. Burden of ProofThe benefits referred to in Article 110 shall not bepayable where the worker dies after twel ve months fromthe date of the injury, unless it is proved that the injurywas the principlal contributory cause of his death.

112. Benefits not Taxable1) The benefits paid in accordance with the provisions

of this Section shall be free from any kind of tax.2) The benefits payable under the provisions of this

Section shall not be assigned, attacched or deductedby way of setoff.

PART EIGHTCollective Relations

CHAPTER ONETrade Unions and EmplQyers Associations

113. The Right to Form Organizations1) workers and employers shall have the right to

establish and form trade unions or employersassociations, respectively and actively participatetherein:

2) In this Proclamation:(a) "trade Union" means an organization formed

by workers;(b) "employers association" means an or-

ganization established by employers;(c) "federation" means an organization es-

tablished by more than one trade unions oremployers associations.

(d) "confederation" means an organization es-tablished by more than one trade unionsfederations or employers federations.

114. Formation of Organizations1) A trade union may be established in an undertaking

where the number of workers is ten or more;provided however that the number of members ofthe union shall not be less than ten.

'1~' 1{i\:~X'ii-e ~'(>Dt.A ~:)t.} ."lILal '/:'I'C II{ 1'11'/:')' :(::~ ,,..t Hixtt; 'HIO.

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Federal Negarit Gazeta - No. 12 26'h February 2004-Page 2483

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2) workers who work in undertakings which have less

than ten workers may form a general trade union,provided, however, that the number of the members

of the union shall not be less than ten.3) Trade unions may jointly form federation and

federations may jointly form confederations.4) Employers associations may jointly form em-

ployers federation and employers federations may

jointly form employers confederation.5) No trade union or employers association may form

a confederation without forming federations.6) Any federation or confederation of trade unions or

employers associations may join international or-

ganizations of trade unions or employers.7) No work may belong to more than one trade union

at any given time for the same employment.Where

this provision is not observed, the latest member-

ship shall cancel any previous membership, and the

formalities of membership were simultaneous they

shall all be without effect.8) Notwithstanding Sub-Article 4 of this At1icle, any

employer may join an 'established employers

federation.

115. Functions of Organizations

Organizations shall have thef.ollowing functions1) observe the conditions of work and fullfill the

obligations set forth in this proclamation; respect

the rights and interests of members in particular,

represent members in collective negotiations and

labour disputes before the competent body when so

requested or delegated;(a) where there exist more than one trade union at

a given enterprise, the trade union which isgoing to bargain a collective agreement and

consult with authorities, is the one which getsS(jC:'+I or more support by all employees of

.' enterprise.(b) "c: organization which deserve the majority

vote should be registered by the ministry.(c) after a certain period of time if an organization

faild to secure the maiority votes' the or-

ganization which won the majority vote getsLegal personality after registration in its prace.

(d) After a certain period of time, if an or-

ganization failed to secure the majority vote,

the organization that won the majority votegets legal personality in its place after regis-

tration.2) esnure that laws regulations, directives and

statements are known to, be observed and im-plemented by members;

3) initiate laws and regulations pertaining employers

and workers; participate actively during their

preparations and amendments;4) discharge other functions provided for in the

constitutions of the organization.

'/1\' i{1Qi~'ii'!i ~oYuMA ~;J"')' ;JlLfIJ </:1'C Xi{ {'II":'} I;f;.,..t Iit!1} '}.9". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2484

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116. Functions of Federations and ConfederationsIn addition to those matters mentioned under Article115 federations and confederations shall have thefollowing functions;1) to strengthen the unity and sprit of co-operation of

their members; participate in the determination orimprovement of the conditions of work at the tradeor industry level as well as to encourage membersto strengthen their participation in the constructionof the national ec<,nomy;

2) to represent their organizations in any conferences;3) to discharge other functions in accordance with

theu- constitutions.

117. Constitution of OrganizationsTrade unions and employers associations shall issuetheir own constitutions. The constitutions may includeinter alia the following;1) name of the organization;2) address of the head office of the organization;3) purpose of the organization;4) date of formation of the organization;5) emblem of the organization;6) qualifications for leadership;7) contribution of its members;8) financial and property administration of the or-

ganization;9) meeting and election procedures;

,

10) disciplinary measures; and11) the conditions for dissolving the organization.12) Status of the property in case of the dissolution of

the organization118. Registration of Organizations

1) Every organization shall be registered by theMinistry in Accordance with this Proclamation;

2) Every organization shall, upon its establishment,submit to the Ministry for registration the followingdocuments:(a) constitution of the organization;(b) a document containing the names; address and

signatures of its leader;(c) in the case of a general union, the names of

undertakings where members are working;(d) where the organization is a federation or a

confederation, the names, address and sig-natures of their leaders and the member tradeunions or employers associations;

(e) name and emblem of the organization;3) The Ministry shall, after examining the documents

and ascertaining that they are duly completed, issuea certificate of registration within fifteen days ofreceiving the application. Where the Ministry doesnot notify its decision within this period, theorganization shall be deemed registered;

4) An organization which is not registered in accor-dance with the provisions of this Proclamation maynot perform activities set forth in this Proclamation;

5) A trade union or employers association registeredby the Ministry in accordance with this Proclamationshall have legal persJnality and in particular, have thecapacity to undertake the following activities;(a) to enter into contract;(b) to sue and be sued;

.,~ ~i'I:!ix.ii'?; ~oS!oM\ ~;Jt:" ;JILIIJ <h'l'C I~ rtH:'} I~~+1 Ii!xji 'H".

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Federal Negarit Gazeta - No. 12 26thFebruary 2Q04---:'-Page2485

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(c) to own, use and tranfer property;(d) to represent members at anylevel, and(e) to perform any legal act necessary for the

attainment of its purposes.

119. Refusal to Register .

The Ministry may refuse to register an organization foranyone of the following reasons.1) Where the organization does not fulfil the

requirements laid down in this Proclamation,regulations and directives issued in accordancewith this Proclamation;

2) where the objectives and the constitution of the

organization are illegal;3) where the name of the organization is similar to

another organization established prior to it or soclosely similar as to confus~ its members and thegeneral public in any manner; or

4) where one or more than one of those elected as

leaders of the organization have been convicted andpunished, within the late ten years, of serious,nonpolitical offences and the organization is notwilling to substitute .them by others.

120. Cancellation of Registration1) The Ministry may apply to the competent court to

cancel the certificate of registration of an or-ganization, on anyone of the following grounds:(a) where the certificate of registration is obtained

by fraud or mistake or deceit;(b) where anyone of the objectives or constitution

9f the organization is found to be illegal underthis Proclamation and the organization is notwilling to remedy or correct the illegalprovisions or conditions, or

(c) where the organization is found to have

engaged in activities which are prohibitedunder this Proclamation or performed actswhich are contrary to its purposes and cons-titution and it is not willing to cease or remedyor eleiminate them.

2) The Ministry may upon request by an organization

ensure that the organization is dissolved in suchmanner as it thinks appropriate.

121. Notice to Cancel Registration organization"1) The Ministry shall before applying for the can-

cellation of theregistration of an organization inaccordance with sub-article 1of Article 120, give tothe concerned organization <:memonth prior noticespecifying the reasons for the cancellation and theopportunity to oppose it. The Ministry may notspecify any reason other than those enumerated insub-article 1 of Article 120.

2) Where the one month period of notice provided for

in sub-article (1) of this Article has expired and theorganization dose not oppose the notice or theopposition is considered groundless by the minis-try, the Ministry may apply to the competent court

for th~ cancellation of registration.

'IX' !{iQix'ii?; 4..$!..M\ '1:Jt.l' :JILfIJ '1:'1'(; X!{ fI1'l;'} X;~ '''') !:iix:iJ; ~'9'" Federal Negarit Gazeta - No. 12 26'" February 2004-Page 2486

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3) without prejudice to sub-article 2 of this Article theMinistry may suspend the organization to refrainfrom the act which is prohibited by theproclamation or contrary to its objectives and theconstitution which may give rise to cancellation ofthe certificate as provided for under sub-article l(c)of Article 120 of this Proclamation.

122. AppealWhere the Ministry refuses registration of the or-ganization, the' organization may appeal to the com-petent court within fifteen days (15) from the date ofthereceipt of the decision in writing. During the hearing,the Ministry shall be given the opportunity to appearbefore the court and forward its opinion.

123. Consequence of Cancellation of Registration or uponrequest by the OrganizationAn organization shall be deemed dissolved where theregistered organization is dissolved by a decision of acourt or upon request by the organization to the Ministryand is dissolved from the day a decision is made.

CHAPETER TWOCollective agreement

SECTION ONEGeneral

124. Definition1) "Collective agreement" means an agreement con-

cluded in writing between one or more represen-tative of trade uinions and one or more employersor agents or representatives of employers or-ganizations.

.

2) "Collective Bargaining" means a negotiationmade. hetween. employers and workers or-ganizations or their representatives concerningconditions of work or collective agreement or therenewal and modifications of the collectiveagreement.

125. Collective bargaining1) Trade union shall have the right to bargain a

collective agreement with one or more employersor their organization in matters provided for inArticle 128.

2) Employer or employer's associations shall have theright to bargain a collective agreement with theirworkers organized in a trade union.

126. Representation .

1) The following shall have the right to representworkers during collective bargaining.(a) Where there is a trade union, the leaders of the

union who are empowered to represent theworkers during collective bargaining.

(b) where there is ageneral trade union, the leadersof the union, who are authorized in accordancewith the constitution of the union.

2) The person who represent the employer shall be theconcerned employer or employers or those who aredeligated by more than one employers associations.

127. AdvisorsAny bargaining party toa collective agreement may beassisted by advisors who render expert advice duringthe negotiation.

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Federal Negarit Gazeta - No. 12 26111February 2004-Page 2487

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128. Subject Matter of a Collective Agreement

Matters concerning employment relationship and con-ditions of work as well as relations of employers andtheir organizations with workers' organizations may bedetermined by collective agreement.

129. Contents of the Collective Agreement

Without prejudice to the generality of Article 128 ofthisProclamation, the following may inter alia, be deter-mined by collective agreement:1) matters left by the provisions of this Proclamation

or other laws to be regulated by collectiveagreement;

2) the conditions for protection of occupational safety

and health and the manner of improving socialserVIces;

3) workers' participation, particularly, in mattersregarding promotion, wages, transfer, reductionand dicipline;

4) conditions of work, the procedure for making work

rules and griveance procedures;5) arrangement of working hours and interval break

times;6) parties covered by the collective agreement and its

duration of validity.

130. Procedure for Collective Bargaining

1) A party wishing to conclude a collective bargaining

may request the other party in writing. It shall alsoprepare and" submit draft necessary for the

. . )

negotIatIon.2) The requested party shall within 10 days of

receiving the request, appear for collective bar-gammg.

3) The parties shall before commencing collectivebargaining draw up the rules of procedure.

4) each party shall have the duty to bargain in good

faith.5) Issues on which the parties could not reach

agreement by negotiations in good faith shall besubmitted to the competent labour disputes set-tlement tribunal.

6) Parties to a collective agreement that is enforce

shall decide to amend or replace their collectiveagreement with in 3 months before the validity dateexpires. Each Party, after having decided to amendor replace the collective agreement, shall finalize itwithin 3 months as of the date of its expiry. If thenegotiation is not finalized with the said period oftime the collective agreement whose validity date isexpired shall cease to be effective,

131. Registration of Collective Agreement

Upon executing a collective agreement, the parties shallsend sufficient copies of the same to the Ministry forregistration.

132, Accession

A collective agreement which has already been signedand registered may be acceded to by others.

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SECTION TWOConditions of Validity of Collective Agreement

133. Duration of Validity of Collective Agreement1) Any provision of a collective agreement which

provides for conditions of work and benefits whichare less favourable than those provided for underthis Proclamation or other laws shall be null andvoid:

2) Unless otherwise decided therein, a collectiveageement shall have a legal effect as from the dateof signature.

3) unless expressly stipulated otherwise in a collectiveageements, no party may challenge the collectiveagreement before 3 year from the date of itsvalidity, provided, however, that;(a) Upon the occurrence of a major economic

change, a challenge to the collectiveagreement may be submitted to the Ministerby either party before the expiry of the fixedtime.

(b) The Minister shall, upon receipt of a challengeto a collective agreement in accordance withthis sub-article 3 (a), assign advisor with aview to enabling the two parties settle thematter by agreement. If the two parties fail tosettle the matter by agreement, Article 142 ofthis ProClamationshall apply.

(c) the parties may at any time change or modifythier collective agreement, provided,however, that without prejudice to the specialconditions set forth in sub-article 3 (a) and (b)of this Article, a party may not be obligedwithout his consent to bargain a collectiveagreement to change or modify it before thesaid time limit expires.

SECTION THREEScope of Application ofa Collective Agreement

134. Scope of Application

1) The provision of a collective agreement shall beapplicable to all parties covered by it.

2) Where the collective agreement is more favorableto the workers in similar matters than thoseprovided for by law, the collective agreement shallprevail. However, where the law is morefavourable to the workers than the collectiveagreement the law shall be applicable.

135. Exception

1) Where a trade union which is a party to a collective

agreement is dissolved, the collective agreement

shall continue to be valid between the employer andthe workers.

2) In the case of amalgamation of two or more

undertakings, unless decided otherwise by the

concerned parties:

'11\' j(iQihi"ii ~.II. ~.~t.), :JtLfIJ "/1'C XI{fll";'} J:;~4'1 Iinj} 'H'" Federal Negarit Gazeta - No. 12 261hFebruary 2004-Page 2489

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(a) where undertakings which have their own

collective agreemnet are dissolved the collec-

tive agreement concluded by more workers

before the dissolution shall be deemed as

concluded by the others and shall be applicable.(b) where only one of the undertakings has a

collective agreement, it shall be applicable to

the undertaking which results from the amal-

gamation,(c) where the number of workers of all of the

undertakings, are equal and they have their own

collective agreements, the one more favorable

in general, shall be applicable.

3. Where an undertakings is amalgamated or devided,

the provisions of Sub-Article (2) of this Article shall,

mutatis mutandis, apply.

PART NINE

Labour Dispute

CHAPTER ONE

General

136. Definitions

In this Proclamation:1) "concilitaion" means the activity conduced by a

private person or persons appointed by the Minis-try at the joint request of the parties for thepurpose of bringing the parties together andseeking to arrange between them voluntary set-tlement of a labour dispute which their ownefforts alone do not produce;

2) "essential public services undertakings" means

those services rendered by undertakings to thegeneral public and includes the following:(a) air transport;(b) undertakings supplying electric power;(c) undertakings supplying water and carrying

out city cleaning and sanitation services;(d) urban bus services;(e) hospitals, clinics, dispensaries and phar-

macles;(f) fire brigade services; and(g) telecommunication services;

3) "labour dispute" means any controversy arising

between a worker and an employer or trade unionand employers in respect of the application oflaw, collective agreement, work rules, em-ployment contract or customary rules and alsoany disagreement arising during collective bar-gaining or in connection with collectiveagreement:

4) "lock-out" means an economic pressure appliedby closing a place of employment in order topersuade workers to accept certain labour con-ditions in connection with a labour dispute or toinfluence the outcome of the dispute;

1R- !(it~f.1 4..~MA ~;Jt"" ;JII/I) -t.'I'C II ftl-f:."f. I:;r; n Iiir.1?; 'J.9". Federal Negarit Gazeta - No. 12 26thFebruary 2004-Page 2490

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5) "Strike" means the slow-down of work by anynumber of workers in reducing their normal out-puton their normal rate of work or the temporarycessation of work by any number of workers actingin concert in order to persuade their employer toaccept certain labour conditions in connection witha labour dispute or to influence the outcome of thedispute.

CHAPTER TWOLabours Courts

137. Establishment of Labour Divisions

1) There shall be set up labour divisions, as may benecessary, at each regional first instance court, eachregional court which hears appeals from regionalfirst instance courts and at the Central High Court.

2) The Minister shall submit the number of labourdivisions to be established in accordance with Sub-Article (1) of this Article to be determined by theappropriate authority.

138. Labour Division of the Regional First Instance Court

1) The labour division of the regional first instancecourt shall have jurisdiction to settle and determinethe following and other similar individual labourdisputes;(a) disciplinary measures including dismissal;(b) claims related to the termination or con-

cellation of employment contracts;(c) questions related to hours of work,

remuneration, leave and rest day;(d) questions related to the issuance of certificate

of employment and release;(e) claims related to employment injury;(t) unless otherwise provided for in this

Proclamation, any criminal and petty offencesunder this Proclamation.

2) The labour division of the regional first instancecourt shall give decisions within 60 days from thedate on which the claim is lodged.

3) The party who is not satisfied with the decision ofthe regional first instance court may, within 30 daysfrom the date on which the decision was delivered,appeal to the labour division of the.regional courtwhich hears appeals from the regional first instancecourt.

139. The Labour Division of the Regional Appellate Court

1) The labour division of the regional court which

hears appeals from the regional first instance courtshall have jurisdiction to hear and decide on thefollowing matters:(a) appeals submitted from the labour division of

the regional first instance courts in accordancewith Article 138 of this Proclamation;

(b) objections on question of jurisdiction;(c) appeals submitted against the refusal of the

registration of an organization by the Ministryin accordance with Article 122 of thisProclamation;

'I~' !{i\".ii~~i{iI,J"U\ ~;lt.'l' ,'JI/.ffJ 'II'I'C: Ht fll'I:'} J:~I;''''t :m~:i?; 'HI". Federal Negarit Gazeta - No. 12 261hFebruary 2004-Page 2491

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(lC~ t\.!~c-n f,:Y'I\A II

(d) appeals submitted by an employer who isaffected by the order of labour inspector inaccordance with Article 180 (1) of thisProclamation;

(e) appeals submitted against the decision of theMinistry in accordance with Sub-Article (3)of Article 20.

(f) request submitted for the cancellation of theregistration of an organization in accordancewith Sub-Article 2 of Article 121.

2. The decision of the court on appeal submittedunder Sub-Article (1) of this Article shall be final.

3. The Regional appelate labour division court shallmake decision within 60 days from the date of theappeal lodged in accordance to sub-Article 1 ofthis Article.

140. The Labour Division of the Federal High court1) The labour division of the Federal High Court shall

have jurisdiction to hear and decide on appealsagainst the decision of the Board on question of lawin accordance with Article 154 of thisProclamation.

2) The decision of the court under Sub-Article (1) ofthis Article shall be final.

CHAPTER THREEConciliation

141. Assignment of Conciliator1) When a dispute in respect of matters specified

under Article 142 is reported to the Ministry byeither of the disputing parties, it shall assign aconciliator to bring about a settlement of the case.

2) The Ministry may assign conciliators at theNational and when necessary at the Wereda level.

142. Duties and Responsibilities of the Conciliator1) The conciliator appointed by the Ministry shall

endeavour to bring about a settlement on th'"following, and other similar matters of collectivelabour disputes:(a) wages and other benefits;(b) establishment of new conditions of work:(c) the conclusion, amendment, duration and

invalidation of collective agreements:(d) the interpretation of any provisions of this

Proclamation, collective agreements or workrules;

(e) procedure of employment and promotion ofworkers;

(f) matters affecting the workers in general andthe existence of the undertaking;

(g) claims related to measures taken by theemployer regarding promotion, transfer andtraining.

(h) claims relating to the reduction of workers.2. The conciliator shall endeavour to brring about a

settlement by all reasonable means as may seemappropriate to that end.

3. whenever the concilator fails to settle a labourdispute within 30 days, he shall report'with detailedreason thereof to the ministry and shall serve thecopy to the parties involved. Any party involvedother than those indicated under Sub-Article (1) (a)of this Article may submit the matter to LabourRelation Board. If the dispute as per subArticle 1 (a)of this Article concernes those undertaking des-cribed under Article 136(2) of this proclamationone of the disputing party may submit the case toadhoc Board,

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143. Conciliation and Arbitration1) Notwithstanding the provisions of Article 141 of

this Proclamation parties to a dispute may agree ~osubmit their case to arbitrators or conciliators, otherthan the Minister for settlement in accordance withthe appropriate law.

2) If the disputing parties fail to reach an agreement on

the case submitted to arbitration or concilationunder Sub-Article (1) of this Article the partyaggrieved may take the case to the Board or to theappropriate court.

CHAPTER FOURThe Labour Relations Board

144. Establishment of the Board

1) One or more permanent Labour Relations Boards(here in after referred as permanent Board) may beestablished in Regional Government.

2) The adhoc labour Relation Board (here in afterreferred as adhoc Board) may be established to hear

. and decide disputes that may arise on matters.

specified in sub-article l(a) of Article 142 atundertakings referred to Article 136(2) of thisproclamation.

3) Each permanent or adhoc Board shall be under the

local authority responsible for the implementationof labour laws.

145. Composition of the Permanent or adhoc Board

1) The Board shall consist of a chairman, twoqualified members who have the knowledge andskill on labour relation, appointed by the Minister,four members of whom two represent the tradeunions and two represent employer's associations,and two alternate members one from the workersside and one from the employers side.

2) Employers representatives shall be appointed from

the most representative of employers associationsand workers representatives shall be appointedfrom the most representative of trade unions.

3) The Minister shall assign a secretary and such othernecessary staff to the Board.

.

4) Members and alternate members 'of the Board shallserve on part time basis without remuneration,provided, however, that the Minister may fixstandard fees for attendances at meetings of theBoard.

5) Members and altenate members of the Board shallbe appointed for a term of three (3) years; provided,however, that in making the initial appointments,the terms of one, two and three years, respectively,shall be speicified so that in each subsequent yearthe terms of not more than one-third (1/3) of themembers and altenate members then serving shallexpire in anyone calendar year.

6) The Minister shall dismiss a member in case ofnegligence of duty or meifeasance in office andshall arrange for the appointment of a substitute forthe remaining, unexpired term.

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146. Meeting procedure of the permanent and the adhocBoard1) In the absence of the Chairman another member of

the Board designated by him as Acting Chairman,shall preside over the meetings of the Board. Whereno such member is designated, the member of theBoard with the greatest seniority shall serve asActing Chairman.

2) In the absence Qf a member at any meeting of theboard, the Chairman may designate an alternatemember to replace the absent member at suchmeetings. An alternate members so designatedshall be deemed a member for the meeting forwhich he is designated.

3) Four members of tl)e Board shall constitute aquorum at any meet(ngs provided, however, that aminimum of one member representing workers andone member representing employers shall bepresent.

4) Decision of the Board shall be taken by a majorityvote of the members present. In case of a tie, theChaiman shall have a casting vote.

5) Each decision of the Board shall be signed by allmembers present.

6) Minutes of meetings after approval by the Board,shall be certified by the secretary and shall thereaf-ter constitute the official record of the saidmeetings.

147. Powerofthe permanent and the adhoc Board1) The permanent Board shall have the following

power:(a) to hear labour disputes on matters specified in

sub-article (1) of Article 142, except for (a), toconciliate the parties and to give orders anddecisions:

(b) except for sub-article l(a) of Article 142 tohear cases submitted to it by one of thedisputing parties after the parties fail to reachan agreement in accordance with sub-article(3) of article 142:

(c) to hear cases on prohibited actions referred toin Article 160;

(d) to require any person or organization tosubmit information and documents requiredby the Board for the carrying out of its duties;

(e) to require parties and witness to appear andtestify at hearings;

(t) to administer oaths or take affirmations ofpersons appearing before the Board and ex-amine any such persons upon such oath oraffirmation;

(g) to enter the premises of any working place orundertaking during working hours in order toobtain relevant information, hear witnesses orto require the submission of documents orother articles for inspection from any person inthe premises;

2) The adhoc Board shall have the power to hear labourdisputes on matters specified in sub-article l(a) ofArticle 142, to conciliate the parties and to give anyorders and decisions,

3) Except in cases of emergency the person in charge ofthe premises or the undertaking shall be givenreasonable advance notice before any entry inaccordance with sub-article 1 (g) of this Article.

4) Orders and decisions of the Board shall be con-sidered as those decided by civil courts of law.

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148. Rules of ProcedureThe pennanent or the adhoc Board shall issue its ownrules of evidence and procedure.

149. Hearings of cases

1) Before giving decisions, the permanent or theadhoc Board shaH notify the parties involved andafford them an opportunity to be heard. At leastthree (3) days advance notice of hearing shall begiven to the parties and the notice shall contain inthe date, hour and place of hearing.

2) If any of the parties or any other person properlysummoned to appear at a hearing fails to appear atthe fixed time and place, the Board may proceedwith the hearing. If failure to appear was not thefault of the person involved the Board shall grantthat person a second opportunity to appear beforeit.

3) No apeal may be taken on the Borad's decisiongiven in accordance with Suh..Article (2) of thisArticle.

4) All hearings of the Board sh<1lJhe puhllC unless theChairman for good cause decides otherwise.

5) The permanent or the adhoc Board shall not bebound by the rules of evidence and procedureapplicable to courts of law, but may infonn itself insuch manner at it thinks fit.

6) Trade unions, employers associations and otherparties notified to appear at the hearing may berepresented by their duly authorized represen-tatives or appointed legal council. The Board maylimit the number of such representatives who mayactively participate in a hearing on behalf of anysingle party.

150. Consideration of Matters1) The pennanent or the adhoc Board shall endeavour

to settle by agreement Labour disputes submitted toit, and to this end it shall employ and make use of allsuch means of conciliation, as it deems appropriate.

2) The Board may inappropriate circumstances con-sider not only the interest of the parties immediatelyconcerned but also the interest of the community ofwhich they are apart and may in such circumstancesgr-ant a motion to intervene by the government as

. .amICUScunae.

3) In reaching any decision, the Board shall take intoaccount the substantial merits of the case, and neednot follow strictly the principles of subtantive lawfollowed by civil courts.

151. Decisions

1) The pelmanent or the adhoc Board shall givedecision within 30 days from the date on which theclaim is loged.

2) Decisions of the pennanent or adoc Board shall bemade in writing and signed by the Board memberswho concur therein. Dissenting opionions shallalso be made in writing and signed by the mebers indissent.

3) In every decision of the Board the judgement shallcontain the following:(a) the issue or controversy submitted for decsion;(b) the substance and source of relevant testimony

and evidence received in the course of theproceedings;

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(c) the findings of the fact made and the

evaluation of the evidence which leads the

Board to make such findings;(d) the decision of each issue or controversy;

(e) the action to be taken on the basis of such

decision.4) A copy of the decision of the Board shall be served

upon the parties involved within 5 days from the

date of decision.

152. Effect of Decisions

1) Subject to article 154 of this Proclamation, eachdecision of the permanent or the adhoc Board shallhave immediate effect.

2) Where a decision of the permenent or adhoc Boardrelates to working conditions, it shall be a term ofthe contract of employment between the employerand the worker to whom it applies, and the termsand conditions of employment to be observed andthe contract shall be adjusted in accordance with itsprovisions.

153. Finality of the Board's Findings of Fact

All findings of facts made by the Board shall be finaland conclusive.

154. Appeal1) In any Labour dispute case an appeal may be taken

to the Federal High Court by an aggrieved party onquestions of law, within thirty (30) days after thedecision has been read to, or served upon, theparties whichever is earlier.

2) The court shall have the power to uphold, reverse ormodify the decsion of the Board.

3) The court shall give its decision within thirty daysfrom the date on which the appeal is submitted to itin accordance with Articell of this Article.

155. Offences against the permanet OTthe adhoc Board

1) Whosever in the course of a Board in-quiry,proceeding or hearing in any manner degrades,holds up to ridicule, threatens or disturbs the Boardor any of its member in the discharge of their duties,shall be punishable with simple imprisonment notexceeding six months, or with fine not exceedingBirr 1000 (Birr one thousand.)

2) Where the offence described in sub-article (1) ofthis article is not committed openly or during openhearing the punishment, except in more seriouscases, shall be a fine not exeeding Birr 500 (fivehundred Birr).

3) Proceedings of the Board shall be considered"quasi-judicial proceedings" and the Board "acompetent judicial tribunal" for the purpose ofArticle 442 of the Penal Code, and viloationsthereof shall be punishable as provided there under.

4) The Board may punish any person who committedany ofence described in this Article.

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156. Annual Report

The permaneT\t or the adhoc Board shall submit to theMinister an annual report of its activities.

CHAPTER FIVEStrike and Lock-out

General

1) Workers have the right to strike to protect theirinterest i' the manner prescribed in thisProclamation.

2) Employers have the right to lock-out in themanner prescribed in this Proclamation.

3) The provisions of Sub-Articles 1 and 2 of thisArticle shall not apply to workers and employersof undertakings referred to in Article 136 (2) ofthis Proclamation.

158. Conditions to be fulfi1ed

Before initiating a strike or lock-out partially or whollythe following steps shall be taken:1) Unless otherwise provided in this Proclamation,

the party initiating a strike or lock-out shall giveadvance notice to the other concerned partyindicating its reasons for taking the said action;

2) Both parties should make all efforts to solve andsettle their labour dispute through conciliation;

3) The strike to be taken by the workers should besupported by a majority of the workers concernedin a meeting in which at least 2/3rdof the membersof the trade union were present.

4) Measures should be taken to ensure the ob-servance, by employers and workers, of safetyregulations and accident prevention procedures inthe undertaking.

159. Procedure for Notice

1) The notice under Article 158 (1) shall be given bythe party initiating a strike or lock-out to the otherconcerned party and to the representative of theMinistry in the region or the concerned govern-ment office.

2) The notice specified in Sub-Article (1) shall beserved 10 days in advance of taking action.

160. Prohibited Actions

1) Without Prejudice to the provision of Sub-Article(1) of Article 159, a strike or lock-out initiatedafter a dispute has been referred to the Board or tothe court and 30 days have not elapsed before anyorder or decision is given by the Board or theprescribed period has elapsed before the courtgives decisions is unlawful;

2) It shall be unlawful to refuse to obey, or to take orcontinue to strike or to lock-out against or inconflict with the final order or decision of theBoard or of the court disposing in whole or in partof labour dispute proceedings or to delayunwarrantedly in obeying such Board or courtorder or decisions; provided, however, that thestrike or lock-out initiated, which is not against orin conflict with any such order or decision, butseeks to compel compliances therewith, shall notbe deemed illegal or prohibited.

3) It is prohibited to accompany strike or lock-Dutwith violence, threats of physical force or withany act which is clearly and officially unlawful.

157.

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CHAPTER SIXFees

161. Exemption from Fees

1) No court fees shall be charged in respect of casessubmitted to conciliation and to the LabourRelations Board by any workers or trade union,employer or employers associations in accordancewith Articles 141 and 147.

2) No court fees shall be charged in respect of casessubmitted by any worker or trade union to courts.

PART TENPeriod of Limitation and Priority of Claims

CHAPTER ONEPeriod of Limitation

162. Limitation

1) Unless a specific time limit is provided otherwise inthis Proclamation or other relevant law, an actionarising from an employment relationship shall bebarred by limitation after one year from the date onwhich the claim becomes enforceable.

2) Any claim to be reinstated by a worker arising fromthe unlawful termination of a contract of em-ployment shall be barred after three months fromthe date of the termination of the contract ofemployment.

3) Claims by a worker for payment of wages, overtimeand other payments shall be barred after six monthsfrom the date it become due.

4) Any claims by a worker or employer for any kind ofpayment shall be barred by limitation unless anaction is brought within six months from the date oftermination of the contract of employment.

5) The relevant law shall be applicable to the period oflimitation which is ilot provided for in thisProclamation.

163. Calculation of Period of Limitation

1) Unless otherwise specifically provided for in thisProclamation, the period of limitation shall begin torun from the day following the day when the rightmay be exercised.

.

2) Whenever the last day of a period of limitation fallson a day other than a working day, it shall expire onthe next working day.

164. Interruption of A Period of Limitation.A Period of limitation shall be interrupted by

1) any action taken before an authority responsible forthe determination of labour disputes until a finaldecision is given.

2) any action taken before the competent authorityresponsible for the enforcement and application ofthis proclamation until a final decision is given inwriting.

3) the express recognition of the other party's rightprovided, however, that a period of limitationinterrupted on such ground may not be interruptedfor more than three times in the aggregate.

165. Waiver of Limitation

Any party may waive this right to raise as a defence aperiod of limitation after its expiry, provided, however,that, a waiver of such right made before the date ofexpiry of the period of limitation shall have no effect.

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166. Discretion of the Competent Authority1) The authority responsible for the determination of

labour disputes may accept an action after theexpiry of a period of limitation if it ascertains thatthe delay is due to force majuere provided,however, that unless the action is brought withinten days from the date the force majuere cease toexist, it shall not be accepted.

2) Without affecting the generality of the provisionsof Sub-Article (1) of this Article, the followingshall be good calise of disregarding a period oflimitation.(a) illness of the concerned worker;(b) transfer of the worker upon order to a place

other than his residence;(c) call of the concerned worker for nationalserVIce.

CHAPTER TWOPriority of Claims

167. Priority Over Other Debts

Any claim of payment of a worker arIsmg fromemrJloyment relationship shall have priority over otherpayments or debts.

168. Procedure of Payment of Claims1) In the event that the undertaking is liquidated,

execution officers or other persons authorized bylaw or the court to execute such liquidation shallhave the duty to pay the claims referred to in Article167 within thirty days following the decision of the.competent authority.

2) Where the said claims are not met within the timelimit set forth in Sub-Article (1) of this Article dueto lack of funds, they shall be paid as soon as thenecessary funds are available.

169. Lien of HOme Workers

where the under taking is liquadaied or cease to operateHome workers may exercise a lien on goods in theirpossession that they have produced for a employer andsuch lien shall be of equal rank to their claims. Suchmeasure shall be deemed an action taken to enforce theright provided for in Article 167.

PART ELEVENEnforcement of Labour Law

CHAPTER ONELabour Administration

170. Power of the Minister1) The Minister may issue directives necessary for the

implementation of this Proclamation. He may inparticular, issue directives on the following:(a) occupational safety, health and the protection

of working environment;(b) standards of working conditions;(c) classification of hazardous jobs;(d) in consultation with the concerned organs,

type of works which are particularly arduousor dangerous to the health and to thereproductive systems of women workers;

(e) types of works which requires work permitsfor foreigners and in general, the manner ofgiving work permits;

(f) employment of Ethiopian nationals outside ofEthiopia;

(g) in consultation with the concerned organs,types of occupations and works in whichapprenticeship need to be given;

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(h) duration of apprenticeship;(i) theoretical and practical aspects of appren-

ticeships as well as the manner of giving tests; .U) procedure for the registration of job-seekers

and vacancies;(k) procedure for the reduction of work force;(1) undertakings required to have insurance

coverage for the payment of employmentinjury benefit.

2) The Minister shall organize, co-ordinate, follow-up and execute the labour administration systemby establishing an Employment Service, a LabourInspection Service and also a permanent AdvisoryBoard which consists members from the Govern-ment, employers associations and trade unions.

171. Advisory Board

The Advisory Board, is an organ established inaccordance with Sub-Article (2) of Article 170 whichshall study and examine matters concerning em-ployment service, working conditions, the safety andhealth of workers, the labour laws in general and giveadvisory opinion to the Minister. Its duties andresponsibilities shall be determined in the directives tobe issued by the Minister.

SECTION ONEEmployment Service

172. Employment Service. Employment services shall include the following;

1) assist persons who are able and willing to work toobtain employment;

2) assist employer in the recruitment of suitableworkers for their works;

3) determine the manner in which foreign nationalare employed in Ethiopia;

4) determine the. manner in which Ethiopiannationals are employed outside of Ethiopia;

5) Co-operate with the concerned offices and or-ganizations, in the preparation of trainingprogrammes;

6) undertake studies concerning the employed andunemployed manpower of the country;

7) in collaboration with the concerned offices con-duct studies relating to the manner of improvingvocational training at the national level anddistribute same to beneficiary and implement theemployment policy properly.

173. Employment Exchange

Employment Labour exchange shall include thefollowing:1) registration of job-seekers and vacancies;2) selection from among the registered job-seekers

and sending those who fulfill the requirements tocompete for the positions notified by employers;

3) registration by the person assigned for this pur-pose by the Minister, of job seekers who haveattained the age of 14 years and above uponpresenting the necessary documents.

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174. Employment of Foreign Nationals1) Any foreigner may only be employed in any type of

work in Ethiopia w1:lerehe possesses a work permitgiven to him by the Ministry.

2) A work permit shall be given for an employment ina specific type of work for three years and shall berenewed every year. However, the Ministry mayvary the three years limit as required.

3) Where the Ministry ascertains that the foreigner is

not required for the work, the work permit may becancelled,

4) The Minister inaccordance with the law maycharge service charge for the issuance, renewal orreplacement of work permit.

175. Employment of Ethiopian Nationals Abroad

An Ethiopian national may be employed outside ofEthiopia where the Ministry has obtained adequateassurances that his rights and dignity shall be respectedin the country of employment.

176. Prohibition.

No person or entity shall perform employment ex-change activities for consideration.

SECTION TWOLabour Inspection Service

177. Labour Inspection Service

Labour Inspection service shall include the following1) ensure the implementation of the provisions of this

Proclamation, regulations and directives issued inaccordance with the Proclamation, other lawsrelating to labour relations, registered collectiveagreement, and the decisions and orders given bythe authorities responsible to determine labourdisputes;

2) supervise, executive, educate, study, make researchand prepare a standard of work to ensure theimplementation of the provisions issued in accor-.dance with this Proclamation and other lawsregarding working conditions, occupational safety,health and working environment;

3) prepare the list of occupational dieases andschedules of degrees of disablement;

4) classify dangerous trades or undertakings;5) conduct studies, and compile statistical data

relating to working conditions;6) prepare training programmes concerning the

prevention of employment injuries;7) supervise and ensure that where undertakings are

constructed, expanded, renovated or their applian-ces installed, they are not dangerous to the safetyand health of workers;

8) take administrative measures in order to implementthis Proclamation and regulations and directivesissued in accordance with this Proclamation;

9) to seek in the courts or in the authorities responsiblefor determining labour disputes appropriatemeasures for the enforcement of the provisions ofthis Proclamation and of such sanctions as may berequired by its decision rendered in the course of itslawful activities.

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178. Powers and Duties of Labour Inspectors

1) The Minister shall assign Labour Inspectors who

are authorized to carry out the responsibilities offollow-up and supervision of the inspectionservice.

2) The Labour Inspectors shall have an identity card

issued by the Minister bearing the official seal.3) The Labour Inspectors shall have the power to

enter, during any working hours without priornotice, any work place which they may thinknecessary to inspect in order to examine, test orenquire to asscertain observation of the provisions

of Article 177. In particular;(a) to question any person alone or in the presence

of witnesses;(b) to check, copy or extract any paper, file or

other documents;(c) to ensure that the relevant notices are affixed at

the appropriate place of work.(d) to take any sample of any matter in a work

place and to test it to ensure that it does not

cause injury to workers;(e) to take photograph of any worker, and

measure draw or test buildings, rooms, fac-tories, car tools, goods and copy and registered

document in order to ensure the safety andhealth of workers;

4) Where a sample is taken in accordance with Sub-

Article (3)(d) of this Article, the employer shall beinformed in advance, the manager or his represen-

tative and shall have the right to be present.

179. Measures to be taken by Labour Inspection

1) Where the Labour Inspector observes that there is

on or in the premises, plant, installations,machinery, equipment or material of any under-

taking or in the working methods being followed

therein any conditions which constitute a threat tothe health, safety or welfare of the workers of suchundertaking, shall intruct the employer to correct

such condition within a given period of time.2) Upon failure of the employer to take such steps

within the given time after receiving instructions in

accordance with Sub-Article (1) of this Article, theLabour Inspector shall issue to the employer anorder requiring;(a) that alteration in existing conditions which

may be necessarry to remove the threat to thehealth, safety or well-being of the workers be

completed within a stated period of time;(b) that any measures which may be necessary too

prevent imminent danger to the safety orhealth of the workers to be taken immediately.

3. Where the Labour Inspector is in doubt about the

technical or legal danger of any particular case, heshall report thereon to the minister requesting thatappropriate decision be given and orders issuedaccordingly.

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180. ApeaJ

1) Where the employer is dissatisfied with the ordergiven in accordance with Sub-Articles (1) and (2)of Article 179, he may appeal to the authorityresponsible to determine labour disputes courtwithin five working days, provided, however thatthere shall not be a stay of execution where theorder is given to avert an imminent danger pursuantto Article 179 (2)(b).

2) The decision given on the appeal filed in accor-dance with Sub-Article (1) of this Article shall befinal. Where the employer does not appeal withinthe time limit, the decision shall be executed by theappellate court.

181. Restriction on the Functions of Labour Inspectors

1) The Labour Inspectors shall perform their func-tions diligently and impartially. They shall take intoaccount any reasonable suggestions given to themby employers and workers.

2) No Labour Inspector shall at any time, whetherduring or after he left his employment, reveal to anyother person any secrets of manufacturing, com-mercial or other working processes which maycome to his attention in the course of performinghis duties under this Proclamation.

3) No Labour Inspector shall reveal to any personother than the concerned authority in the Ministrythe sources of any complaint brought to hisattention concerning a defect or breach of legalprovision and, in particular, he shall not make anyintimations to any employer or his representativethat his inspection visit was made in response to acomplaint filed with the Labour Inspection Service.

4) A Labour Inspector shall in all cases notify theemployer of his presence on the premises of theundertaking unless he considers that suchnotification may be prejudicial to the efficientperformance of his duties.

5) No Inspector shall supervise any undertaking ofwhich he is an owner or in which he has an interest.

6) A Labour Inspector shall refrain from inteferenceor involvement in labour disputes and collectivebargaining as a conciliator or an arbitrator.

182. Prohibition

The following acts shall be deemed to constitute

obstruction of the Labour Inspector in the performance

of his duties:1) preventing the Labour Inspector from entering a

work place or from staying in the premises;2) refusing to let the inspector examine records or

documents necessary for his functions;3) concealing data relating to employment accidents

and the circumstance in which they occur.4) any other act or omission that delays or interferes

with the exercise of the Labour Inspector's function.

1~ l(if.:;fr 4..1.kA ~..7t"', ..7u.1IJ ~'I'C IH rtJi;"" I~ +, Hif:l} '}.9". Federal Negarit Gazeta - No. 12 261hFebruary 2004-Page 2503

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PART TWELVEPenalty and Transitory Provisions

CHAPTER ONEPenalty Provisions

183. General

Unless the provisions of the Penal Code provide moresevere penalties, the penalties laid down in this Chaptershall be applicable.

184. Offences by an Employer

1) An Employer who:(a) causes workers to work beyond the maximum

working hours set forth in this Proclamation orcontravenes in any manner the provisionrelating to working hours;

(b) infringes the provisions of this Proclamationregulating weekly rest days, public holidays,or leaves; or

(c) contravenes the provisions of Article 19 of thisProclamation; shall be liable to a fine notexceeding Birr 500 (Birr five hundred)

2) An employer who:(a) fails to fulfil the obligations laid down in

Article 12(4) of this Proclamation;(b) Fails to keep records required by this

Proclamation, and provide type of infor-mation at a reasonable time to the Ministry inaccordance with this Proclamation.

(c) violates the provisions of Article 14 (1) ofthisProclamation; or

(d) terminates a contract of employment contraryto Article 26(2) of this Proclamation;shall be liable to a fine not exceeding Birr1200 (Birr one thousand and two hundreds).

185. Common Offencesan employer or a trade union which:1) violates regulations and directives issued in accor-

dance with this Proclamation relating to the safetyof workers and commit and act which expose thelife and health of a worker to a serious danger ordoes not give special protection to women workersand young workers' as provided for in LabourProclamation.

2) fails to bargain in accordance with Article 130(4) ofthis Proclamation;

3) contravenes the provisions of Article 160 of thisProclamation;

4) does not comply with the order given by the LabourInspectors in accordance with this Proclamation orof the provision other laws;or

5) gives intentionally false information and ex-planations to the competent authorities;shall be liable to fine not exceeding Birr 1200 (onethousand and two hundred) or where the offence iscommitted by a worker or the representative of theemployer, a fine not exceeding Birr 300 (threehundred).

186. Violations of the Provisions of this Proclamation

The Labour Inspector may submit cases involvingoffences committed in violation of the provisions of thisProclamation or regulations and directives issued here-under to the authorities competent to determine labourdisputes under Part Nine of this Proclamation.

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187. Period of Limitation

No criminal proceedings of any kind referred to in thisProclamation shall be instituted where one year haselapsed from the date on which the offence wascommitted.

CHAPTER TWOTransitory Provisions

188. Notwithstanding the provisions of Article 190 of this

Proclamation, and before entering into force of thisProclamation;1) directives issued in accordance with proclamation

No. 42/1993 shall remain enforce, in so far as theyare not inconsistent with this Proclamation.

2) collective agreements concluded in accordancewith Proclamation No. 42/1993 shall be deemedconcluded in accordance with this Proclamationhence this Proclamation shall be applicable.

3) Trade unions and Employers Association es-tablished inaccordance with prolcamation 42/1993shall be decemed established in accordance withthis proclamation.

4) Labour disputes pending before any authoritycompetent to settle labour dispute prior to thecoming into force of this proclamation shall besettled in accordance with the law and procedurewhich were enforce before this proclamation cameinto force.

189. Detennination of Degree of DisablementUntil the schedule determining the degree ofdisablement is issued pursuant to Article 102 (1) of thisProclamation the medical board shall continue itsfunctions as usual.

190. RepeaJedLaws

1) The Labour Proclamation No. 42/1993 (as amen-ded) is here by repled.

2. No laws, regulations, directives and decisions shall,in so far as it is inconsistent with this Proclamation,have force and effect in respect of matters providedfor in this Proclamation.

191. Effective Date

This Proclamation shall enter into force on the date of itspublication in Federal Negarit Cazete.Donate Addis Ababa this 26thday of February 2004

GIRMA WOLDE GIORGISPRESIDENT OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETIllOPIA

o()cn'i l'1li" "'-r-t.P ,(-C:fo}- ;J-"""BERHANENA SELAM PRINTING ENTERPRISE

ETHIOPIAN PROCLAMATION

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