Foreign Employers Guarantee Fund Establishment Council of Ministers Regulation No. 434/2018

Council of Ministers Regulation No. 434 /2018 COUNCIL OF MINISTERS REGULATION TO PROVIDE FOR THE ESTABLISHMENT OF THE

 FOREGIN EMPLOYERS’ GUARANTEE FUND

This Regulation is issued by the Council of Ministers pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 916/2015 (as amended) and Article 61(1) and 75(1) of the Ethiopia’s Overseas Employment Proclamation No. 923/2016.

Section One General Provisions

1.Short Title

This regulation may be cited as the “Foreign Employers Guarantee Fund Establishment Council of Ministers Regulation No. 434/2018”.

  • Definition

Unless the Context requires otherwise, in this Regulation:

1/ “Foreign employer” means a foreign governmental organization employing worker through the Ministry or an employer outside Ethiopia having permission to employ worker directly;

2/ “Proclamation” mean Ethiopia’s overseas Employment proclamation No. 923/2016;

3/ Definitions given under Article 2 of the Proclamation will be applicable under this Regulation;

4/ Any provision in the masculine gender includes the feminine.

  • Establishment

The Foreign Employers’ Guarantee Fund (hereinafter “the Fund”) is hereby established as a permanent financial resource to be deposited in a special account to be opened by the Ministry of Finance and Economic Cooperation.

  • Objective of the Fund

The objective of the fund is to create a permanent source of finance to cover workers’ claim that may arise from breach of contract of employment by foreign employers.

  • Source of the Fund

The Fund shall be drawn from the mandatory contribution that any foreign employer is required to pay for each worker it recruits pursuant to Article 61(2) of the Proclamation.

Section Two Administration of the Fund

  • Responsibility to Administer the Fund

The Ministry Shall be in charge of the administration of the Fund pursuant to the responsibility entrusted to it by Article 61(3) of proclamation No.923/2016.

  • Utilization of the Fund

1/ The proceeds of the Fund shall be used to cover unsettled financial claims of workers arising as the result of breach of contract by employers.

2/ The procedure for submission by workers of financial claims arising from breach of contract of employment by foreign employers and for effecting payment accordingly out of the proceeds of the Fund shall be set out by a directive to be issued by the Ministry.

  • Duties and Responsibilities of the Ministry

The Ministry shall:-

1/ ensure that any foreign employer pays the compulsory contribution to the Fund for each worker recruited by him in accordance with Article 61(2) of the proclamation.

2/ make payments to workers filing financial claims as a result of breach of contract of employment in accordance with the directive issued by it pursuant to Article 7(2) of this Regulation.

  • Account of the fund

The proceeds of the Fund shall be deposited in a special account to be opened for the Fund by the Ministry of Finance and Economic Cooperation.

  1. Books of Account of the Fund

1/ The Ministry shall maintain separate, complete and accurate books of account for the account of the Fund.

2/ The account of the Fund shall be audited annually by the Auditor General or by an auditor appointed by him.

Section three

Miscellaneous provisions

  1. Inapplicable laws

Any Regulation, directive or practice which is inconsistent with this Regulation shall not be applicable on matters provided for in this Regulation.

  1. Effective Date

This Regulation shall enter into force on the date of publication in the Federal Negarit Gazette.

Done at Addis Ababa, this 5th day of November, 2018.

ABIY AHMED (DR.)

PRIME MINISTER OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

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