Temporary Suspension in Employment Contracts under Ethiopian Labor Law

Temporary Suspension in Employment Contracts under Ethiopian Labor Law

In the dynamic world of employment, there are instances where the rights and obligations of an employment contract may need to be temporarily suspended. Understanding the legal framework and practical implications of such temporary Suspension is crucial for both employers and employees. This article provides a comprehensive guide to the temporary suspension of employment rights and obligations, complete with practical examples.

General Overview of Temporary Suspension

Temporary suspension of rights and obligations in employment does not terminate or interrupt the employment contract. Instead, it pauses specific duties:

1. Employee’s Duty to Work: The employee is not required to perform their job duties during the suspension.
2. Employer’s Duty to Pay: The employer is not obligated to pay wages or other benefits, unless otherwise stipulated by law or a collective agreement.

Grounds for Temporary Suspension of Employment Rights and Obligations

Several valid grounds justify the temporary suspension of employment rights and obligations. These include:

1. Leave Without Pay: Granted by the employer upon the employee’s request.
2. Trade Union or Social Service Leave: For holding office in trade unions or engaging in social services.
3. Detention: If the employee is detained for up to 30 days, provided the employer is informed within 10 days.
4. National Call: When the employee is called for national duty.
5. Force Majeure: Full or partial suspension due to unforeseen events beyond control, lasting at least 10 consecutive days.
6. Financial Problems: Suspension due to financial difficulties not attributable to the employer, lasting at least 10 consecutive days.

Duty to Inform and Legal Procedures

For temporary suspension based on force majeure or financial problems, the employer must inform the Ministry or the appropriate authority in writing within three working days of the suspension’s cause.[1]

Ministry or Appropriate Authority’s Decisions

Upon receiving the employer’s notice, the Ministry https://mols.gov.et/or the appropriate authority must determine the validity of the suspension within three working days. If no decision is communicated within this period, the suspension is automatically deemed approved. Conversely, if the suspension is found unjustified, the employer must resume work and compensate the employees for the suspension period. Aggrieved parties may appeal to the competent labor court within five working days.

Confirmation or Authorization of Suspension

If the temporary suspension is validated, its duration should not exceed 90 days. Should the employer be unable to resume activities within this period, the employment contract will be terminated, entitling the employee to benefits as per Articles 39 and 44 of the Proclamation.

Expiry of Suspension Period

Upon the suspension’s expiry, the employee must report to work on the next working day. The employer is obligated to reinstate the employee to a relevant position without adversely affecting their job status or wage.

Practical Examples of Temporary Suspension

1. Leave Without Pay: An employee requests a three-month unpaid leave to pursue further education. The employer grants this leave, temporarily suspending the employment contract without terminating it. The employee’s job position and benefits are protected during this period.
2. Detention: An employee is detained for 20 days. The employer is informed within the stipulated 10 days and temporarily suspends the employment contract. Upon release, the employee resumes work without losing job position or seniority.
3. Force Majeure: A natural disaster causes significant damage to an employer’s facility, leading to a 15-day suspension of operations. The employer notifies the appropriate authority, and the suspension is confirmed. The employer and employees resume normal operations once the facility is restored.

The temporary suspension of employment rights and obligations is a vital mechanism to address various circumstances without terminating the employment relationship. By understanding and adhering to legal provisions, both employers and employees can navigate these suspensions effectively. This comprehensive guide aims to clarify the legal framework and practical aspects, ensuring informed decision-making in the employment sector.

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[1] If the Ministry or appropriate authority confirms good causes for suspension, they must set the duration of the suspension, not exceeding 90 days. If the competent authority determines the employer cannot resume activities within the specified period, the contract of employment ends, and the worker is entitled to benefits per Articles 39 and 44 of this Proclamation.