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The termination relating to persons such as members of the armed force, members of the police
force, employees of state administration, judges of courts law, and other governments employees.
• Absence from duty for a total five days in six months period while being warned in writing of
such a problem; and where the absence cannot be classified in any of the leaves provided under
the Proclamation;
• Misappropriation of the property or fund of the employer with intent to procure for himself or
to a third person unlawful enrichment;
• Performance result of a worker, despite his potential, is persistently below the qualities and
quantities stipulated in the collective agreement or determined by the agreement of the parties;
• Being responsible for brawls or quarrels at work, having regard to the gravity of the case;
• Conviction for an offence where such conviction renders him incompatible for the post which he
holds
• Being responsible for causing damage intentionally or through gross negligence to any
property of the employer or to another property which is directly connected with the
work of the Undertaking;
• Commission of any of the prohibited acts under Article 14 (2) of this Proclamation
• Absence from work due to a court sentence passed against the worker for more than
thirty days;
• Commission of other violations stipulated in a collective agreement as grounds for
terminating contract of employment without notice.
• In addition of above they contain military and police termination from their organization.
• Any loss of capacity of work referred to in Sub-Article (1) (a) of this Article shall, unless otherwise
provided by a collective agreement, be verified by a periodical job performance evaluation.
• The following grounds attributable to the organizational or operational requirements of an
undertaking shall constitute good causes for the termination of a contract of employment with
prior notice.
• Any event which entails direct and permanent cessation of the worker's activities in part or in
whole resulting in the necessity of a terminating a contract of employment;
• Without prejudice to the provisions of Article 18 (5) and (6) demand fall for the products or
services of the employer resulting in the reduction of the volume of the work or profit of the
undertaking and thereby requiring termination of a contract of employment;
• A decision to alter work methods or introduce new technology with a view to raise productivity
resulting in termination of a contract of employment
• Where the cancellation of a job position affects a workforce in accordance with Article
29 (1) of this Proclamation, the termination shall be undertaken in compliance with the
requirements laid down in accordance with Article 29 (3).
Reduction of Workforce
• In this Proclamation “reduction of workforce” means termination of workforce of an undertaking
for any of the reasons provided for by Article 28 (3) of this Proclamation affecting a number of
workers representing at least ten percent of the number of workers employed or, in the case
where the number of workers employed in an undertaking is between twenty and fifty,
termination of at least five employees over a continuous period of not less than ten days.
• The expression “number of workers” referred to in Sub-Article (1) of this Article means the
average number of the workers employed by an employer concerned within the twelve months
preceding the date when the employer took measures of reduction of workers
• Whenever a reduction of workforce takes place in accordance with Article 28 (3) of this
Proclamation, the employer shall conduct consultation with a Trade Union or workers’
representatives in order to retain workers having skills and higher rate of productivity in their
posts. In case of comparable skill and rate of productivity, the workers to be affected first by the
reduction shall be in the following order:
• The reduction shall affected first workers except those that are listed under (d) up to (e) of this
Sub-Article;
Exceptions
• The procedure laid down in this Proclamation shall not apply to the reduction of workers
due to normal decrease in the volume of a construction work as a result of its successive
completion unless the reduction affects workers employed for parts of the work before
the work for which they are employed.
• For the purpose of Sub-Article (1) of this Article, “construction work” includes the
construction, renovation, upgrading, maintenance and repair of a buildings, roads, rail-
way lines, dams and bridges, installation of machinery and similar works
• Where the employer has committed any act contrary to human dignity and morals or other acts
punishable under the Criminal Law against the worker;
• Where the workers has been a victim of sexual harassment or sexual violence by the employer
or a managerial employee;
• In the case of imminent danger threatening the worker’s safety or health, where the employer,
having been made aware of such danger, failed to act within the time limit in accordance with
the early warning given by the competent authority or appropriate trade union or the worker
himself to avert the danger;
• Where the employer has repeatedly failed to fulfill his basic obligations towards the worker as
prescribed under this Proclamation, collective agreement, work rules or other relevant laws
• Where a worker terminates his contract of employment for reasons referred to under sub-
article (1) of this Article, he shall inform the employer in writing the reasons for termination
and the date on which the termination is to take effect
Period of Limitation
A worker's right to terminate his contract of employment in accordance with Article 32 (1) of this
Proclamation shall expire after fifteen working days from the date on which the act occurred or ceased
to exist.
• The worker’s manifested loss of capacity to performs the work to which he has been
assigned or his lack of skill to continue his work.
• If the worker ,for reason of health permanently ,is unable to carry out his obligations
under the contracts of employment,
• When the post of the worker is canceled for good causes and the worker cannot be
transferred to another post.
• The notice of termination by the employments shall be hand to the worker in person.
Where it is not possible to find the worker or he refuse to receive the notice, it shall be
affixed on the notice on the notice board in the work place of the worker for ten
consecutive days.
periods of notice
Periodes of notice means the number of days the the employer should give for the worker before
termination of the contract .This Periods of notice range from one to three months based on the period
of services of the worker.
1. One month in the casr of worker who has completed his prohobition period of service not
exceeding one year.
2. Two months in the case of a worker who has a period of service above one year to nine years.
3. Three months in the case of a worker who has a period of service of more than nine years.
4. The months in the case of worker who completed his probation and whose contract of
employment is terminated due to reduction of work force.
Reduction of work
The other grounds of tarmination of employment contract in Ethiopia is Reduction of workers.Reduction
of workers can be made when the following requirements are fulfilled.
1. Fall in the demand for the products or services of the employment resulting in the reduction of
the volume of the work and profit of the undertaking & there by resulting in the necessity of the
work force.
2. A decision to alter work methods of introduced new technology with aview to raise productivity
resulting in the reduction of work force
3. Any event which entails direct and permanent cessation of the worker's activities in part or in
whole resulting in the necessity of a reduction of the work force.
• In the case of equal skill and rate of productivity ,the workers to be affected first by the
reduction shall be in the following order.
d. Workers representatives.
e. Expecting mothers