The enactment of legislation in relation to the private organization employee’s pension scheme has been a recent phenomena and it has been governed by the Private Organization Employees Pension Proclamation no. 715/2011.

Regarding the social security scheme given to the employee, article 3 sub-articles 2 (a) and (b) of the proclamation states that employee, who has pension scheme or provident fund before the coming into force of the Proclamation, may either decide to continue to benefit from the pension scheme or the provident fund or agree to be covered by the Proclamation. Also employees of religious organizations and political organizations and persons engaged in the informal sector may, upon their consent, be covered by this Proclamation.

Recently, however, it has become necessary by the government to amend the Private Organization Employees Pension Proclamation no. 715/2011.

The new draft legislation has not yet been approved by the parliament. Yet, it is worth mentioning some of the amendments made under the draft legislation.

Under the draft proclamation;

  • The definition given to “private organization employee” is made to include employees of private organizations hired for not less than one month.
  • Except employees of religious and political organizations, employees who had pension scheme or provident fund and previously decided to benefit from their pension scheme or provident fund will transfer the accumulated contribution to a pension fund of the Private Organizations Employees’ Pension Fund.
  • Where the private organization fails to pay the collected pension contributions within one month, it will be liable to pay the unpaid pension contribution including bank interest.
  • If the employment contract is terminated for any reason, the pension contribution of the private organization’s as well as the employee’s will not be reimbursed.
  • Where a private organization employee gets more than 25% annual average salary increment at any time on the normal salary paid a month before a year, then the 25% annual salary increment will only be added for the calculation of gratuity.
  • A contribution for social health insurance scheme pursuant to Social Health Insurance Proclamation will monthly be deducted from pension benefit.
  • An employee a private organization who has served at least 10 years, if terminates his contract of employment after the coming in to force of this proclamation, he shall receive retirement pension benefit for life upon attaining retirement age.
  • Where a private organization employee who receives retirement benefit is employed in a private organization covered by this proclamation and has not reached the retirement age, his new service shall be added to his previous eservice; provided that if the retirement benefit based on the accumulated service is less than the previous one; without prejudice to his right to receive the previous pension, he shall not receive any type of payment for the new service he provided.

If you have an additional question or comment or need to get a practical legal support in this regard please  Contact us.

“Copyright © 2003-2015 Fikadu Asfaw and Associate Law Office

 

Related notes

 

Note: This guide provides vital information on Ethiopian Investment law and practice and is not intended to substitute professional advice given with full knowledge of the specific circumstances of each case and proficiency in the law of Ethiopia such as might be provided by an Investment Attorney or Investment lawyer in Ethiopia. Such information about Investment in Ethiopia can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.

This article is a recent update to our blog post entitled Investment Opportunities open for Foreign Direct Investment in Ethiopia (posted on July 2013) and it focuses on the issue of various investment sectors reserved only to the government, domestic investors and Ethiopian nationals only. In other words foreign investors are not allowed to engage in the areas of investment listed below. The interpretation of the Investment Proclamation is believed to mean all other except these areas are open for foreign Investments. However, under the new Investment (Amendment) proclamation no. 849/2014, the Investment Board under a special circumstance is given the authority to grant the opening of investment areas which are exclusively reserved for domestic investors.

Areas Exclusively Reserved For the Government

  • Postal service except courier services
  • Transmission and supply of electrical energy through the integrated national grid system: and
  • Passenger air transport services using aircraft with a capacity of more than 50 passengers.

Areas Reserved For Joint-Venture Investment with the Government

  • Production of weapons and ammunition: and
  • Telecommunication service

Areas Exclusively Reserved For Domestic Investors

  • Export of raw coffee, chat, oil seeds, pulses, precious minerals, natural forestry products, hides and skins bought from the market, and live sheep, goats, camel, equines and cattle not raised by the investor;
  • Import trade (excluding LPG and bitumen),
  • Wholesale trade (excluding supply of petroleum and its by-products as well as wholesale trade by foreign investors of their locally produced products).
  • Manufacturing of ice crème and cakes;
  • Manufacturing of plastic shopping bags
  • Finishing of fabrics, yarn, warp and weft, apparel and other textile products by bleach­ing, dyeing, shrinking, sanforizing, mercerizing or dressing;
  • Tanning of hides and skins below finished level;
  • Manufacture of cement;
  • Manufacture of clay and cement products;
  • Tour operation below grade 1;
  • Construction, water well and mining exploration drilling companies below Grade 1;
  • Kindergarten, elementary and junior secondary education by constructing own building;
  • Diagnostic centre service by constructing own building;
  • Clinical service by constructing own building;
  • Capital goods leasing (this does not include leasing of motor vehicles); and
  • Printing industries

Areas Exclusively Reserved For Ethiopian Nationals

  • Banking, insurance, micro-credit and saving services;
  • Broadcasting and mass media services;
  • Attorney and legal consultancy services;
  • Preparation of indigenous traditional medicines;
  • Advertisement, promotion and translation works;
  • Domestic air transport services using aircraft with a seating capacity of up to 50 pas­sengers; and
  • Packaging, forwarding and shipping agency services.

If you have an additional question or comment or need to get a practical legal support in this regard please  Contact us.

“Copyright © 2003-2015 Fikadu Asfaw and Associate Law Office

Related notes

Note:This guide provides vital information on Ethiopian Investment law and practice and is not intended to substitute professional advice given with full knowledge of the specific circumstances of each case and proficiency in the law of Ethiopia such as might be provided by an Investment Attorney or Investment lawyer in Ethiopia.Such information about Investment in Ethiopia can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.

The Ethiopian Investment Commission (EIC) has announced that it has revoked 216 investment licenses during the first half of 2014/15 fiscal year. This number is notably decreased when compared to the 2,980 revoked licenses in the previous year. The commission has revoked these licenses for three major reasons; 

  1. Failure to comply and proceed according to investment proclamation no. 769/2012
  2. Misusing the investment incentives which are granted by the commission  and
  3. Failure to execute their investments within two years.

Although  the licenses of these investors is revoked by the EIC, it have also approved  the application of  200 new and 53 expansion  investment license for investors who apply with the necessary initial capital  of 200,000 USD for foreign investors  or 150,000 USD for joint venture investors. The estimated capital of these investors has reached over 21 Billion Birr.

The EIC, which became accountable to the FDRE Prime Minister as of June 2014, major objective, is promoting private investors to invest in Ethiopia mainly through Foreign Direct Investment. Accordingly during the past six months 2,000 investors from 42 different countries has visited the commission in order to explore the investment opportunities in Ethiopia. Furthermore the most recent data of the commission shows that 108 projects have joined the Ethiopian market and these investors has given 16,661 employees a job opportunities and investors/companies from China has been front runners based on the number of investment projects they operate in Ethiopia and Companies from India and Sudan follows.

If you have an additional question or comment or need to get a practical legal support in this regard please  Contact us.

“Copyright © 2003-2015 Fikadu Asfaw and Associate Law Office

Related notes

Note:This guide provides vital information on Ethiopian Investment law and practice and is not intended to substitute professional advice given with full knowledge of the specific circumstances of each case and proficiency in the law of Ethiopia such as might be provided by an Investment Attorney or Investment lawyer in Ethiopia.Such information about Investment in Ethiopia can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.

The enactment of copy right laws was initiated to support creativity and protection of such creativity of a person. Copyright and Neighboring Rights Protection Proclamation, no. 410/2004 provides a wide aspects of protections for copy right works in general.

This article focuses on copy right protection for the audio visual works. The requirements for protection of copy right, the owner of economic right, and also the period of protection will be dealt briefly under this article.

Requirements for Protection

According to Copyright and Neighboring Rights Protection Proclamation, no. 410/2004, where the work of the audio visual is original and fixed, the owner of the audio visual work is entitled to protection regardless of the quality and purpose of the work.

In order to obtain a copyright protection, the work has to be original and fixed. However,there are debates as to the scope of fixation. Some argue that fixation can’t guarantee the protection of a work unless it’s communicated with the public. While others argue that as long as the work is expressed in some material form and where it is stored in a way that it can be perceived and communicated, the work should be subject to copyright protection.