Probation Period under the Ethiopian Labour Proclamation No. 1156/2019

Probation period is crucial in employment contracts, allowing both employers and employees to evaluate suitability before committing to a long-term relationship. In Ethiopia, the Labor Proclamation No. 1156/2019 outlines the regulations governing probation period. This article provides a detailed overview of probation period as per the Ethiopian Labor Proclamation, highlighting key provisions and practical implications.

Definition and Duration of Probation Period

Article 11 of the Ethiopian Labor Proclamation No. 1156/2019 defines the probation period as a timeframe allocated for testing an employee’s suitability for a specific position.

  • Maximum Duration: The probation period shall not exceed 60 working days. This extension from the previous limit of 45 days allows employers sufficient time to evaluate an employee’s performance and fit for the role​​.

Rights and Obligations During the Probation Period

Both employers and employees have specific rights and obligations during the probation period to ensure a fair trial phase.

Employee Rights

  1. Fair Treatment: Employees on probation must be treated fairly and not discriminated against based on race, color, gender, religion, political opinion, national origin, or social status (Article 14).
  2. Wages and Benefits: Employees must receive the agreed-upon wages and any benefits stipulated in the employment contract, similar to regular employees (Article 12).
  3. Termination Notice: If an employer decides to terminate the employee during the probation period, they are not required to provide notice or severance pay. However, if the employee continues to work beyond the probation period without any formal communication of termination, they are considered a regular employee (Article 11)​

Employer Rights

  1. Assessment: Employers have the right to assess the employee’s performance, skills, and overall fit for the role during the probation period.
  2. Termination: Employers can terminate the employment if the employee is deemed unsuitable without providing notice or severance pay during the probation period (Article 11).

Conversion to Regular Employment

Upon successful completion of the probation period, the employee automatically transitions to regular employment status, indicating the employer’s satisfaction with the employee’s performance.

  • Written Confirmation: It is advisable for employers to provide written confirmation of the successful completion of the probation period and the transition to regular employment status. This documentation helps avoid misunderstandings and establishes a clear record.

Practical Implications of the Probation Period

Understanding and utilizing the probation period’s legal framework is essential for both employers and employees:

  1. Clear Expectations: Both parties should clearly understand the probation period’s objectives, duration, and assessment criteria, helping to set clear expectations and reduce potential conflicts.
  2. Performance Reviews: Regular performance reviews during the probation period provide valuable feedback to employees and help employers make informed decisions.
  3. Legal Compliance: Employers must ensure compliance with the Labor Proclamation’s provisions to avoid legal disputes and ensure fair treatment of employees.

The probation period is a vital component of employment relationships, allowing for the assessment of compatibility and performance. The Ethiopian Labor Proclamation No. 1156/2019 provides a comprehensive legal framework for probation period, ensuring the rights and obligations of both employers and employees are upheld. By understanding and adhering to these regulations, employers can make informed hiring decisions, and employees can benefit from fair treatment and clear expectations.

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