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New Labour Proclamation - Proclamation No. 1156/2019
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 2.56 MB
 09-02-2021

WHEREAS, it has been found necessary to lay down a working system that guarantees the rights of workers and employers to freely establish their respective associations and to engage, through their duly authorized representatives, in social dialogue and collective bargaining, as well as to draw up procedures for the expeditious settlement of labor disputes, which arise between them;


WHEREAS, there is a need to create a favorable environment for investment and achievement of national economic goals without scarifying fundamental workplace rights by laying down well-considered labour administration; and determine the duties and responsibilities of governmental organs entrusted with the power to monitor labor conditions; occupational health and safety; and environmental protection together with bilateral and tripartite social dialogue mechanisms, political, economic and social policies of the Country;


WHEREAS it has been found necessary to reformulate the existing labour law with a view to attaining the aforementioned objectives and in accordance with the and in conformity with the international conventions and other legal commitments to which Ethiopia is a party;


NOW, THEREFORE, in accordance with Article 55 (1) and (3) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

Members of parliament have ratified the Commercial Code on March 2021, marking the first time in over six decades that the Code has seen any major revisions. Revised after 62 years, the new Code allows for the legal recognition of holding companies and single-member companies, as well as allowing virtual shareholder meetings. The new Code also introduces a variety of insolvency procedures in addition to bankruptcy, including preventive restructuring proceedings and simplified reorganization proceedings. It also incorporates new clauses that provide protection for minority shareholders on corporate transparency and disclosure, improved rights, and more stringent stipulations of responsibilities on the part of corporate boards. The changes made are expected to improve the ease of doing business in the country.

You can download the official version of this code (Amharic Version) here.