PROCLAMATION NO. 104/1998
PRIVATE EMPLOYMENT AGENCY PROCLAMATION
WHEREAS, The participation of individuals and private entities in the employment services has become necessary;
WHEREAS, it has particularly become necessary to protect the rights, safety and dignity of Ethiopians employed and sent abroad;
NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as the “Private Employment Agency Proclamation No. 104/1998”.
In this Proclamation, unless the context otherwise requires;
1) “Private Employment Agency” means any person, independent of government bodies, which performs one or two of the following employment services without directly or indirectly receiving payments from the worker;
(a) services of matching offers of and application for local employment without being a party to the employment contract;
(b) services of making a worker available locally or abroad to a third party by concluding a contract of employment with such a worker.
2) “License” means a certificate of competence issued by the competent authority to a private employment agency enabling the agency to engage in employment service activities;
3) “Worker” shall have the meaning as defined in the Labour Proclamation No. 42/1993.
4) “Competent Authority” means the Ministry or a Regional Authority responsible for the implementation of labour laws in the Region;
5) “Minister” or “Ministry” means the Minister or Ministry of Labour and Social Affairs respectively.
6) “Person” means any natural or juridical person.
7) Provisions of this proclamation set out in the masculine gender shall also apply to the feminine gender.
3. Scope of Application
1) Notwithstanding the provisions of Article 3(2)(d) of the Labour Proclamation No. 42/1993, Proclamation No. 42/1993 shall, for the purpose of this proclamation, be applicable to an Ethiopian employed to work abroad for personal services of non-profit making purposes.
2) Without prejudice to Article 172 of the Labour Proclamation No. 42/1993, any Ethiopian may be allowed to go and work abroad only through the private employment agency unless the Minister permits the direct recruitment by an employer.
3) Any labour dispute and other dispute arising under Article 15 of this Proclamation between the agency providing a service specified in Article 3(1)(b) of this Proclamation and the worker may be settled in accordance with Proclamation No. 42/1993.
4) This Proclamation shall not relieve any private employment agency of its obligations imposed by other laws.
4. Requirement of License
Any person who wishes to operate a private employment agency shall have to obtain a license from the following authorities;
1) without prejudice to Sub-Article 3 of this Article, from the Regional Authority responsible for the implementation of labour laws, if the employment service is confined within that region;
2) from the Ministry if the employment service is to be rendered in two or more regions;
3) from the Ministry if the employment service is to hire and send abroad an Ethiopian worker to a third party.
5. Condition required to obtain a license
Any person who applies to operate a private employment agency in accordance with this Proclamation shall fulfill the following:
1) present a document that shows he has a business registration for the operation of a private employment service;
2) if he is providing a service of hiring and sending a worker abroad in accordance with this proclamation to present a document that shows he has fulfilled the obligations of guarantee specified in Article 14 of this Proclamation;
3) pay a license fee to the competent authority the amount of which shall be determined by the regulation issued in accordance with this Proclamation;
4) present a chart that shows the organizational structure and the list of members involved in the employment service activities;
5) notify the address of his office and of his representative;
6) present other relevant documents as may be required by the competent authority.
6. Issuance of License
The competent authority shall, upon the fulfillment of the required conditions to obtain a license under this Proclamation, issue a license to the applicant.
A person punished for his engagement in an illegal employment activity shall not qualify for a license to operate a private employment agency.
8. Validity of License
A license issued in accordance with this Proclamation shall be valid for two years subject to renewal every year.
9. Opening of Office
1) Any private employment agency shall open an office for the operation of its activities.
2) A private employment agency which hires and sends Ethiopians abroad for work shall have a branch office or a representative in the country where he sends the worker.
10. Displaying of License
Any private employment agency shall display the license issued to him in accordance with this Proclamation in his office visible to other people.
11. Transfer of Office
Any private employment agency shall notify the competent authority prior to transferring his office to another place.
12. Obligation of a Private Employment Agency
1) In addition to the obligations specified in this proclamation and other laws, a private employment agency shall have the following obligations:
(a) to prepare and submit for approval to the competent authority a procedure regarding the recruitment and registration of job-seekers;
(b) to pay the required fee for issuance, renewal and replacement of the license determined by the regulation issued in accordance with this Proclamation:
(c) notify the competent authority prior to closing his office;
(d) to submit the contract of employment to the competent authority for approval and registration of a copy thereof if the agency provides the service specified in Article 2(1)(b) of this Proclamation.
2) In addition to the obligations provided for in sub-Article (1) of this Article, a private employment agency which sends a worker for work abroad shall have the following obligations:
(a) to submit a legal document establishing a branch office or appointing a representative abroad in accordance with Article 9(2) of this Proclamation and notify the address of same;
(b) provide the necessary orientation to the worker with regard to the work and the country of his employment before the contract of employment is signed;
(c) where the worker wishes a full or partial remittance of his wage to his country, to facilitate same in accordance with the laws of the country of employment;
(d) to submit a report to the Ministry annually or as may be required regarding the situation of the worker in the country of employment;
(e) to respect the moral and culture of the society while performing the activity;
(e) to respect the morel and culture of the society while performing the activity;
(f) to submit for approval to the Ministry prior to extending or modifying the contract of employment and notify the Ministry upon termination of the contract;
(g) upon termination of the contract of employment or whenever the worker so requests, to provide the worker, free of charge, with a certificate stating the type of work he performed, the length of service and the wage he was earning;
(h) to keep a register containing the name, age, educational level, qualification, type of work, position, the amount of wage, duration of the validity of the contract and other particulars which may be required by the Ministry and notify same to the Ministry as may be required;
(i) notify to the Ethiopian Embassy nearest to the country of employment of the workers sent abroad and cause their registration by same Embassy.
13. Suspension or Cancellation of License
Without prejudice to Article 18(2) and (3) of this Proclamation, the competent authority may suspend or cancel a license on the following grounds:
1) where it is found that the license has been issued to the private employment agency based on deceitful document;
2) where it is found that the private employment agency or his representative has received payment in cash or in kind from the worker; or
3) where it is found that the private employment agency has violated other provisions of this Proclamation or regulations and directives issued in accordance wit this Proclamation as well as other laws.
14. Requirement of Guarantee
1) Any private employment agency which sends a worker abroad for work in accordance with this Proclamation shall, for the purpose of protecting the rights of the worker, deposits the following amount of money in cash or its equivalent in a confirmed and irrevocable bond from a recognized financial institutions;
(a) for up to five hundred workers 30,000 US dollar or its equivalent in Ethiopian birr;
(b) for five hundred and one to one thousand workers 40,000 US dollar or its equivalent in Ethiopian birr;
(c) for above one thousand and one workers 50,000 US dollar or its equivalent Ethiopian in Birr.
2) Where the guarantee fund deposited in accordance with sub- Article (1) of this Article is used up or reduced for the protection and enforcement of the rights of the worker the private employment agency shall replenish the fund within ten days.
3) The Ministry may release the guarantee fund within 3 months upon the termination of the employment contract and the fulfillment of the legal rights of the worker sent abroad by the private employment agency unless a claim connected with the worker’s rights and benefits is pending before an authorized body empowered to adjudicate such claim.
15. Protection of the Worker’s Right
1) A contract of employment concluded between the private employment agency which sends workers abroad and a worker shall fulfill the minimum working conditions laid down in the laws of Ethiopian and shall in no circumstance be less favorable to an Ethiopian than the rights and benefits of those who work in a similar type and level of work in the country of employment.
2) The Private employment agency shall, in addition to the rights and benefits provided for in sub-Article (1) of this Article, be responsible to ensure the rights, safety and dignity of the worker.
1) The competent authority shall have the power to enter the office of any private employment agency during any working hour without prior notice, to examine or inquire relevant documents.
2) The competent authority shall be responsible to supervise and control that the rights of the worker, employed by the agency which provides a service mentioned in Article 2(1)(b) of this Proclamation, are not infringed where the license is returned before the date of its expiry.
The private employment agency and the third party shall jointly and severally be responsible or liable for violation of the contract of employment concluded with the worker to provide the service mentioned in Article 2(1)(b) of this Proclamation.
Unless the provisions of the Penal Code provides more severe penalties, any person:
1) without having obtained a license in accordance with this Proclamation:
(a) who performs employment services in Ethiopia, is punishable with imprisonment for a term of not less than three years and not exceeding five years and a fine Birr 10,000 (Ten thousand Birr).
(b) who sends an Ethiopian national abroad for work, is punishable with imprisonment for term of not less than five years and not exceeding ten years and a fine birr 25,000(twenty five thousand Birr).
2) Who violates this Proclamation and regulation and directives issued in accordance with this Proclamation apart from what are specified in Sub-Article(1) of this Article and without prejudice to Article 13 of this Proclamation, is punishable with imprisonment upto two years or a fine upto birr 10,000(Ten thousand Birr).
3) Where the human rights, and physical integrity of an Ethiopian sent abroad for work have been injured, the punishment mentioned in sub-Article (1)(b) of this Article may be increased from 5 to 20 years regorous imprisonment and a fine upto Birr 50,000(Fifty thousand Birr).
19. License Fees
The amount of fees required for a license issued in accordance with this Proclamation shall be determined by the regulations of the Council of Ministers.
Article 176 of the Labour proclamation No. 42/1993 is hereby deleted and replaced by the following new Article.
“No persons or entity shall perform employment services for consideration from a worker.”
21. Power to Issue Directives
The Minister may issue directives necessary for effective implementation of this Proclamation.
22. Effective Date
This Proclamation shall enter into force as of the 5th day of March, 1998.
Done at Addis Ababa, this 5th day of March, 1998.
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA