Civil Code > TITLE XVI CONTRACTS FOR THE PERFORMANCE OF SERVICES 1

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TITLE XVI CONTRACTS FOR THE PERFORMANCE OF SERVICES

Chapter 1. Contract of employment in general

Art. 2512 – Definition.

A contract of employment is a contract whereby one party, the employee, undertakes to render to the other party, the employer, under the latter’s direction, for a determined or undetermined time, services of a physical or intellectual nature, in consideration of wages which the employer undertakes to pay him.

Art. 2513 – Public servants and State employees.

(1) The provisions of this Chapter shall not apply to the relations of public authorities with public servants.

(2) Unless otherwise provided in special laws, the provisions of this Chapter shall apply to contracts of employment concluded by industrial or commercial undertakings administrated by the State or its administrative or technical departments.

Art. 2514 – Special categories.

Nothing shall affect the special provisions applicable to certain categories of employees having a particular legal status.

Section 1. Formation of contract

Art. 2515 – Formation of contract.

The formation of a contract of employment shall not be subject to any special formalities.

Art. 2516 – Collective agreements. – 1. Principle.

Employers or associations of employers, on the one hand, and trade unions of employees, on the other hand, may lay down, in collective agreements, the conditions which shall be included in all individual contracts of employment subject to the authority of such collective agreements.

Art. 2517 – 2. Conditions of validity and duration.

(1) The collective agreements mentioned in Art. 2516 shall not be valid unless made in writing and confirmed by the competent public authorities.

(2) They may, notwithstanding any contrary stipulation, be determined at any time after the expiration of a year by giving six months notice.

Art. 2518 – 3. Effect.

(1) The terms of an individual contract of employment which are inconsistent with a collective agreement shall be of no effect unless they are more favourable to the employee.

(2) The void terms of an individual contract of employment shall be supplemented by the terms laid down in the collective agreement.

Art. 2519 – Standard agreements. – 1. Principle.

(1) The public authorities may draw up standard agreements for different kinds of contacts of employment.

(2) Standard agreements thus drawn up shall not be valid unless they are duly published.

Art. 2520 – 2. Effect.

(1) Individual contracts of employment shall be deemed to be made in accordance with the terms of the standard agreements.

(2) The parties may, in writing, depart from the terms of the standard agreements.

Art. 2521 – Staff regulations of an undertaking.

(1) Staff regulations drawn up by the employer for his undertaking shall not bind the employee unless they are reduced to writing and notified to him before the commencement of his employment.

(2) Any penalties inflicted by the employer on the employee, by virtue of these regulations, may be modified by the court where they are contrary to law or equity.

Art. 2522 – Terms unfovaourable to the employee.

(1) Terms in a contract of employment which are less favourable to the employee than the provisions of this Title shall not be valid unless they are expressly authorized by law.

(2) They shall be made in writing or they shall be of no effect.

Section 2. Work of employee

Art. 2523 – Personal character of the obligation.

The employee shall personally carry out the work to be undertaken, unless the contract or circumstances require otherwise.

Art. 2524 – Obligation of care.

(1) The employee shall carry out his work with care.

(2) He shall be liable for any damage he intentionally causes his employer, or for his negligence or imprudence.

(3) In order to assess the liability of the employee, regard shall be had to the nature of the work to be undertaken, the degree of training, the abilities and the qualities of the employee that the employer knew or should have known.

Art. 2525 – Obedience at work.

The employee shall obey the orders of the employer relating to the execution of the work where such orders are not contrary to the contract, the law or morals and obedience to them entails no danger.

Art. 2526 – Work to be done. – 1. Principle.

The employee shall perform the work for which he has been employed.

Art. 2527 – 2. Change of work.

(1) Unless otherwise agreed, the employer may at any time, where the interest of the undertaking so requires, assign a different work to the employee, provided that this entails for the employee no reduction in his wages nor a substantial change in his rank.

(2) Where the new work carries a sage higher than that for which the employee has been engaged, the employer shall be entitled to that wage.

Art. 2528 – 3. Overtime.

(1) The employer may require the employee to do more work than has been agreed in the contract.

(2) The employee shall undertake this extra work where he is able to do so and his refusal would be contrary to good faith.

(3) The employee shall be entitled to an additional remuneration fro this extra work, which shall be fixed having regard to the agreed wage and to all circumstances of the case.

Art. 2529 – 4. Piece work or contract work.

(1) The employee who is paid at piece-rates or for the contract may require the employer who engages him to give him an adequate amount of work for the duration of the contract.

(2) Where there is no piece work or contract work available, the employer may employ the employee by the hour or the day.

Art. 2530 – Tools and materials. – 1. Supply.

(1) Unless the contrary is agreed or customary, the employer shall provide the employee with the tools and materials necessary for his work.

(2) Where the employee provides them himself in whole or in part without being compelled to do so, the employer shall compensate him for them.

Art. 2531 – 2. Obligation of care.

The employee shall preserve with care the things entrusted to him for the execution of his work.

Art. 2532 – Inventions of the employee.

(1) Inventions made by the employee shall belong to him notwithstanding that they have been made during the work done by him in the service of his employer.

(2) They shall however belong to the employer where the employee has been expressly engaged for making researches or inventions.

Art. 5233 – Information concerning the undertaking.

(1) The employee shall, even after the termination of the contract of employment, keep the secrets of the employer of which he has learnt in the course of his work.

(2) He may not make use, to the detriment of his employer, of information he has obtained in the course of his work.

Section 3. Wages due to employee

Art. 2534 – Right to wages.

Any work shall be deemed to be done in consideration of wages, unless it is the custom that the work should be done without payment or the work falls within the professional duties of the person who carries it out.

Art. 2535 – Amount of wages.

(1) The employee shall be entitled to the wages which have been agreed or result from collective agreements or standard agreements binding the employer.

(2) Failing such stipulation, the amount of wages shall be fixed in accordance with the custom of the occupation or the custom of the place where the work is performed.

(3) In the absence of custom, it shall be fixed by the court in accordance with equity.

Art. 2536 – Method of fixing wages.

(1) Wages may be fixed for a given period of time, such as an hour, a day, a week, a fortnight, a month or a year.

(2) They may also consist of a lump sum or be calculated at piece-rates or on the contract for work done, according to the work that the employee delivers to the employer.

Art. 2537 – Share in the profits.

(1) Wages may consist, in whole or in part, of a share in the profits made by the employer, or a percentage of the turnover of the employer, or a percentage of the turnover of the undertaking, or a part of the gains realized by the undertaking or other remuneration of the same kind.

(2) In this case, the employer shall provide the employee, after each assessment, with an account of what he owes him.

(3) The employee may demand that the account so provided be verified by a third party appointed by agreement between the parties or, failing such agreement, by the court.

Art. 2538 – Tips.

Wages may consist, in whole or in part, of the tips given by the customers to the employee or collected, on behalf of his employees, by the employer.

Art. 2539 – Date of payment.

(1) Wages shall be paid to the employees doing work of a physical nature at the end of each calendar fortnight or at the end of such shorter period as may be fixed in the contract.

(2) Wages shall be paid to office or shop employees at the end of each month or at the end of such shorter period as may be fixed in the contract.

(3) Wages shall in any case be paid where the contract of employment comes to an end.

Art. 2540 – Termination of work.

Without prejudice to the provisions of Art. 2541-2543, the employee shall not be entitled to wages for days on which he has not worked.

Art. 2541 – Absence from work.

(1) The employee shall be entitled to his wages, even where he has done no work, where this is due to the fact that the employer has not given him work or has prevented him from working.

(2) The employer may deduct from the wages the savings which the employee has made by not doing his work and the profits that the employee has gained in carrying out some other work.

(3) Where absence from work is not due to his fault, the employer may also deduct from the wages the profits which the employee could have made, acting in good faith, in carrying out some other work.

Art. 2542 – Employee’s sickness. – 1. Principle.

(1) The employee shall be entitled to half his wages where, after having worked for at least three months, he is prevented from working by reason of sickness not intentionally contracted.

(2) The right to wages shall cease at the end of one month where the employee has worked for his employer during one year or more before ceasing his work, and at the end of a fortnight in other cases.

(3) The employer may deduct from what is due the sums which, under a scheme of compulsory national insurance, are paid to the employee on account of the cessation of his work.

Art. 2543 – 2. Piece-rates and tips.

(1) Where wages are paid for piece work or contract work, regard shall be had, in applying Art. 2542, to the average wages paid to employees who, in the undertaking, are doing the same work as the employee absent through sickness.

(2) Regard shall be had also to the average wages paid to the sick employee in the month preceding his cessation of work.

(3) Where all or part of the wages consist of tips, regard shall only be had to tips which are collected on behalf of his employees by the employer, or which are subject in some other way to rules which permit him to control them.

Art. 2544 – Attachment or assignment of wages.

(1) The wages of an employee may not be attached by his creditors except on the conditions laid down in the code of civil procedure.

(2) They may not be assigned by the employee to a third party, except on the same conditions.

Art. 2545 – Advance on wages.

(1) The employer shall grant advances to an employee in need according to the work which has already been done, where the employer can do so without detriment to himself.

He may not grant an advance to the employee for work which has not yet been done unless the wages of the employee may be transferred by him.

Art. 2546 – Set-off.

(1) The employer may not set-off the employees’ wages unless they may be transferred.

(2) They may, however, be set-off against compensation due from the employee by reason of damage that he has intentionally caused his employer.

Art. 2547 – Deductions from wages.

(1) Where it has been agreed that deductions may be made from the wages, such deductions shall, unless otherwise agreed, be deemed to be made for the sole purpose of compensating the employer for future damage which the employee may cause him.

(2) Such deductions shall not be allowed unless the wages may be transferred.

(3) They shall bear interest from the day on which they are made.

Section 4. Safety precautions to be taken by the employer

Art. 2548 – Principle.

(1) The employer shall take such measures as are required by the special circumstances of the work to safeguard the life, physical integrity, health and moral standing of the employee.

(2) He shall in particular arrange the premises and keep up the equipment in his undertaking with this object in view, in accordance with the general practice and technical requirements.

Art. 2549 – Accidents arising from work.

The employer shall be liable for accidents which the employee suffers arising from his work.

Art. 2550 – Assimilated cases.

The employer shall be liable for accidents which the employee suffers arising from activities which he performs in the interests of the undertaking, notwithstanding that these activities have not been ordered by the employer.

Art. 2551 – Accidents at the time and place of work.

(1) Where the employee performs his work on the premises or at the place assigned to him by the contract of employment, the employee suffers during the time and at the place where he works.

(2) Rest periods belonging to the work shall be regarded as part of the work-time.

(3) Premises placed by the employer at the disposal of the employee during these rest periods shall be regarded as part of the work place.

Art. 2552 – Professional diseases.

(1) The employer shall be liable for diseases which the employee contracts arising from his work.

(2) Administrative regulations for the different industries shall specify what diseases shall, notwithstanding any proof to the contrary, be deemed to have been contracted arising from work.

(3) The employee may at any time claim that he has contracted a disease arising form his work, which is not included in any list.

Art. 2553 – Non-liability of employer. – 1. Fault of employee.

(1) The employer shall be relived of his liability under the preceding Articles where he proves that the accident or disease is due to the intentional act of the victim.

(2) He shall also be relieved of liability where he proves that the accident or disease has happened because the employee has contravened a regulation to which his attention had been especially drawn in writing.

Art. 2554 – 2. Absence of relationship with work.

The employer shall not be liable where he proves that the accident has no connection with the work of the employee nor with the contract of employment with which it is associated.

Art. 2555 – 3. Other causes.

The employer shall not be relieved of his liability for any other cause.

Art. 2556 – Scope of liability. – 1. Medical and other expenses.

(1) The employer shall meet all the medical, pharmaceutical, hospital, and other expenses which the accident or the disease necessitates for the employee and which the latter reasonably incurs.

(2) He shall on the same conditions, meet the funeral expenses, where the empyee dies because of the accident or the disease.

Art. 2557 – 2. Apportionment of wages.

(1) The employer shall, during a period of a year, pay to the employee 75% of his wages from the moment when the employee has had to cease work, where the employee is prevented from working because of the accident or the disease.

(2) The amount due from the employer shall be increased by 5% for each year that the employee has given to the service of the employer, provided the wages of the employee are not exceeded.

(3) This amount may however not exceed five hundred Ethiopian Dollars per month.

Art. 2558 – 3. Obligation of maintenance.

(1) After the expiry of the period laid down in Article 2557 and where the employee is permanently deprived, by reason of the accident or the disease, of half or more than half of his capacity to work, the employer shall maintain the employee and his children who are under age.

(2) Such obligation shall not bind the employer unless the employee cannot obtain maintenance from members of his family.

(3) It shall be governed by the provisions of the Book of this Code relating to “Family Relationship” (Art. 807-825).

Art. 2559. – 4. Serious offences or fraud of the employer.

(1) Where the accident or disease of the employee is caused by an intentional act or the recklessness of the employer, the provisions of Art. 2557 and 2558 shall not apply.

(2) The employee, his family and hi heirs may in such case claim compensation for the damage which they have suffered in accordance with the provisions of the Chapter of this Code relating to “Extra-contractual Liability” (Art. 2027-2161).

(3) There shall be a serious offence where the employer makes a mistake or commits an act of imprudence or negligence such that it can only be explained by the stupidity, recklessness or indifference to the life or health of his employees.

Section 5. Holidays due to the employee

Art. 2560 – Usual hours and days.

The employer shall grant the employee the usual hours and days of rest.

Art. 2561 – Annual leave.

Where the employer uses the whole or main time of the employee, he shall grant the employee a period of annual leave during which time he shall pay him his wages

Art. 2562 – Duration of leave.

(1) The duration of the leave shall be ten consecutive days where the employee has been in the service of the employer for one to five years. It shall be fifteen consecutive days where the employee has been in the service of the employer for five to fifteen years.

(2) It shall be twenty consecutive days where the employee has been in the service of the employer for more than fifteen years.

Art. 2563 – Termination of contract.

Where the contract of employment comes to an end, the employee shall be entitled to his leave for a number of days proportionate to the time that he has worked during the year for the employer.

Art. 2564 – Days to be deducted.

(1) The employer shall deduct from the leave the days that have been taken during the year, at the request or on the initiative of the employee, in advance of his annual leave.

(2) He may not deduct the days that the employee has not worked for some other reason.

Art. 2565 – When leave is to be taken.

(1) The leave shall be granted at the time of the year which is most convenient.

(2) Regard shall be had to the nature of the work and the mutual interests of the employee and the employer shall as far as possible be reconciled.

(3) The employee shall receive notice at least a month in advance of the time when his leave shall be taken.

Art. 2566 – Maternity leave.

(1) An employee who expects a child shall be entitled to one month’s leave during the period of her confinement.

(2) The employer shall pay half her salary, during this leave.

Section 6. Termination of the contract

Art. 2567 – Contracts of fixed duration.

(1) A contract of employment made for a fixed period shall expire at the end of the agreed term.

(2) A contract concluded for the carrying out of a definite piece of work shall expire when the agreed work has been accomplished.

(3) Unless otherwise agreed, no notice shall be required to terminate the contract.

Art. 2568 – Maximum duration of contract.

(1) No person may commit his services for more than five years.

(2) A contract of employment made for the life of one of the parties or for a period exceeding five years shall bind the parties for five years only.

(3) Beyond this period, either party may terminate the contract by giving six months notice.

Art. 2569 – Renewal of contract.

A contract of employment made for a fixed period shall be deemed to be renewed for an indefinite time where, after the elapsing of the agreed term, the employee continues his work without the employer objecting thereto.

Art. 2570 – Contract of indefinite duration.

(1) Where the duration of a contract has not been fixed and does not result either from the nature of the work to be done or from any other circumstance, either party may at any time terminate the contract.

(2) The exercise of the right to terminate the contract shall be subject to prior notice being given by the employer or employee.

Art. 2571 – Period of notice.

(1) Prior notice shall be given at least seven days in advance and shall not be effective until the day on which the next payment of salary falls due.

(2) Where the contract of employment has lasted for more than a year, prior notice shall be given at least two months in advance and become effective at the end of a month.

(3) The employer need not give prior notice to the employee where he pays him immediately his wages for the periods laid down in sub-art. (1) and (2).

Art. 2572 – Reason for termination of a contract.

The employer shall inform the employee in writing, where the latter so requires, of the reason for terminating a contract of employment of indefinite duration or not renewing a contract of employment for a fixed period.

Art. 2573 – Compensation for dismissal.

The employee shall be entitled to fair compensation where the employer terminates a contract or refuses to renew it without good cause justifying fully this decision.

Art. 2574 – Amount of compensation.

(1) In fixing the amount of compensation, the court shall take into consideration the nature and duration of the services of the employee, the seriousness of the faults with which he may have been charged, the financial position of the undertaking and any other circumstances it thinks fit.

(2) The compensation shall not exceed the wages paid during the last six months to the employee.

Art. 2575 – Good cause.

(1) There shall be good cause for the decision of the employer where, in the circumstances, it would not be reasonable to expect the contract to be extended or renewed, having regard to the nature of the work.

(2) There shall also be good cause where the employee does not show in carrying out his work, the technical knowledge, conscientiousness, reliability or speed which could reasonably be expected of him.

(3) There shall also be good cause where the situation filled by the employee is abolished in good faith.

Art. 2576 – Where the employee terminates the contract.

(1) Compensation for dismissal may be paid to the employee, even when the termination of the contract has not been the act of the employer, where the latter, by his maneuvers, has compelled the employee apparently to put himself an end to it.

(2) This shall be the case in particular where the employer has dealt unjustly with the employee or substantially or repeatedly violated the provisions of the contact.

Art. 2577 – Services of trust.

(1) Where the contract of employment relates to confidential matters which require special qualifications, the employer need not reveal the reasons for which he has terminated or not renewed the contract.

(2) In such case, the termination of the contract shall not give rise to a claim fro damages, unless it is proved that it has been purposely done with a view to injuring the other party or without due consideration of the loss which it will cause him.

Art. 2578 – Cancellation of contract. – 1. Principle.

The employer or the employee may, without prior notice, immediately cancel the contract of employment where there exists good cause for cancellation.

Art. 2579 – 2. Non-performance of obligations.

Non-performance, by one party, of his obligations under the contract shall not constitute good cause for its cancellation unless it is sufficiently serious in character, having regard to the circumstances and usages.

Art. 2580 – 3. Involuntary termination of the work.

Where an employee is prevented from working by reason of sickness or some other cause, this shall not constitute for the employer good cause for cancellation where it has not been due to the fault of the employee.

Art. 2581 – 4. Strike.

(1) The participation of the employee in a strike shall constitute for the employer good cause for cancellation where the strike has been instigated with the sole purpose of injuring the employer or has been declared unlawful by law or the public authorities.

(2) It shall in not other case constitute good cause for cancellation.

Art. 2582 – 5. Bankruptcy or insolvency of employer.

Where the employer is bankrupt or insolvent, the employee may not cancel the contract unless the security he has requested to guarantee his wages has not been given to him within a reasonable time.

Art. 2583 – Obligation to compensate. – 1. Unfair cancellation.

Where the contract is cancelled in an unfair manner by one of the parties, this party shall make good the loss suffered by the other party by reason of the unfair breaking of the contract.

Art. 2584 – 2. Justified cancellation.

Where the good cause for which the contract is cancelled by one party involves a violation of the contract or is related to such violation, the party who has failed in his duties shall make good the loss suffered by the other party by the termination of the contract.

Art. 2585 – Death of employee.

(1) A contract of employment shall terminate on the death of the employee.

(2) The heirs of the employee shall not incur, by reason of the contract, any personal obligation.

Art. 2586 – Death of employer.

(1) A contract of employment shall not terminate on the death of the employer, unless his person has been a material element in making it.

(2) Where a contract of employment terminates by the death of the employer, the employee shall be entitled to his wages after the death, as though he had received on that day prior notice of termination of a contract of service of indefinite duration.

Art. 2587 – Transfer of undertaking.

(1) Where the employer transfers his undertaking, the contracts of employment made by him shall continue between his employees and the purchaser of the undertaking.

(2) The employees shall keep the seniority rights that they have acquired before the transfer of the undertaking.

(3) The purchaser shall be jointly liable with the transferor to pay all sums which are due to an employee at the time of the transfer in connection with his work, including sums due by reason of the termination of the contract by the transferor, on condition that the purchaser has been informed at the time of the transfer that these sums were due, or that they are shown to be due to the employee in the books of the undertaking or his work-book.

Art. 2588 – Providing certificate of work.

(1) The employee may demand at the end of his contract that the employer shall give him a certificate showing only the nature of his work and the length of his service, as well as the name and address of the employer.

(2) The certificate shall not include a testimonial concerning the quality of the work done or the conduct of the employee, unless the employee expressly requires his employer to give this testimonial.

Art. 2589 – Provisions for restraint of trade. – 1. Principle.

(1) Where the work given to the employee enables him to meet the clients of the employer or enter into the secrets of his business, the parties may provide that the employee shall not, after the termination of the contract, enter into competitive business with his employer or engage in any was whatsoever in an undertaking which would compete with the employer.

(2) Such provision shall be of no effect unless it is express and made in writing.

Art. 2590 – 2. Restriction.

(1) provisions under Art. 2589 shall not be valid unless they are necessary for the protection of the legitimate interests of the employer and do not impede, in an inequitable manner, the economic future of the employee.

(2) They shall not be valid, in particular, unless they are limited as to time, place and business forbidden to the employee.

Art. 2591 – 3. Penalties.

(1) Whosoever infringes a provision made under Art. 2589 shall be liable for the damage resulting from such infringement.

(2) Where the provision contains a penalty, the employee may, unless otherwise stipulated, discharge his obligation by paying the employer the amount of the penalty fixed.

(3) Provided it is expressly agreed in writing, the employer may, in addition to damages, obtain an injunction restraining the contravention, where such action is justified by the importance of the interests which are injured or threatened by the conduct of the employee.

Art. 2592 – 4. Lapsing of provision.

(1) a provision under Art. 2589 shall lapse where it is proved that the employer hs no material interest in its maintenance.

(2) The employer may not avail himself of such provision where he has cancelled the contract of employment or refused to renew it, without the employee having given him good cause so to do.

(3) Nor may he avail himself thereof where he has himself given to the employee good cause for canceling the contract.

Art. 2593 – Receipt in final discharge.

(1) A receipt in final discharge, signed by the employee, shall only relate to wages due from the employer.

(2) Other amounts that may be due to the employee from the employer shall not be regarded as settled unless they are the subject of special receipts acknowledging their payment or the employee has signed in respect of such amounts a document renouncing his right to them.

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