Employment law

Labour Proclamation No. 1156-2019



163. Period of Limitation

1/Unless a specific time limit is provided in this Proclamation or other relevant laws, an action arising from an employment relationship shall be barred after one year from the date on which the right becomes exercisable.

2/ Any claim by a worker to be reinstated shall be barred after three months from the date of termination of the contract of employment.

3/Claim by a worker for payment of wage, over time or any other payment shall be barred after six months from the date it becomes due.

4/ Any claim by a worker or employer for any payment arising from termination of employment contract shall be barred unless an action is brought within six months from the date of termination of the contract of employment.

5/ The relevant law shall be applicable to the period of limitation which is not covered under this Proclamation.

164. Calculation of Period of Limitation

1/ Unless otherwise specifically provided for in this Proclamation, the period of limitation shall begin to run from the date following the date when the right may be exercised.

2/ Whenever the last date of a period of limitation falls on a non- working, it shall expire on the following working day.

165. Interruption of a Period of Limitation

A Period of limitation shall be interrupted by:

1/ Any action taken before an authority responsible for the determination of labour disputes until a final decision is given;

2/ Any action taken before the competent authority responsible for the enforcement and implementation of this Proclamation until a final decision is given in writing;

3/ The written admission of the other party as to the validity of claim’; provided, however, that a period of limitation interrupted on such ground may not be interrupted for more than three times in the aggregate.

166. Waiver of Limitation

Any party may waive his right to raise a period of limitation as a defense; provided, however, that a waiver of such right made before the date of expiry of the period of limitation shall have no effect.

167.Discretion of the Competent Authority

1/ The organ responsible for the determination of labour disputes may accept an action after the expiry of a period of limitation if it ascertains that the delay is due to force majeure; provided, however, that such ground shall not be acceptable unless the action is brought within ten days from the date the force majeure ceases to exist.

2/Without affecting the generality of the provisions of sub-article (1) of this Article, the following shall be considered as force majeure for disregarding a period of limitation:

a) Illness of the worker;

b)Transfer of the worker to a place out of his residence in fulfillment of job tasks;

c) Call of the worker for national service.


PRIORITY OF CLAIMS 168. Priority over other Debts

Any claim by a worker emanating from employment relations shall have priority over other payments or debts.

169. Procedure of Payment of Claims

1/In the event that the under taking is liquidated, execution officers or other persons authorized by law or the Court to execute such liquidations hall have the duty to pay the claims referred to in Article 168 of this Proclamation with in thirty days following the decision of the competent authority.

2/ Where the claims are not satisfied within the time limit set forth in sub-article (1) of this Article due to lack of asset, they shall be paid as soon as the necessary resource are available.

170.Lien of Home Workers Where an under taking is liquidated or ceases to operate, home workers may exercise alien on goods in their possession that they have produced for the under taking and such lien shall be of equal value with their claims. Such measure shall be deemed an action taken to enforce the right provided for in Article168 of this Proclamation

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11 replies »

  1. their is conflict between article 68 (d) English description and the Amharic meaning and also against article 75(1)

  2. What if the employer give termination with notice while the undertaking is relocated or actually continue at another location by closing its activity at the location where the employee was working. The post of the employee is also continue as it is at new location.

  3. I have a Question why modified 377/2003 or what is the defference between 377/2003 and 1156/2019 labor proclamation

  4. what if aan employee issued a 30 day leave warning but the employer fired the employee before the expiry of the 30 day warning paying him only 15 days salary? is it under lawful termination or unlawful termination?

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