Ethiopia’s Overseas Employment Amendment Proclamation No. 1246-2021, introduces several key amendments to the previous Proclamation No. 923/2016¹. These amendments aim to strengthen the framework for overseas employment, enhance worker protection, and regulate agencies more effectively³.
Here are the primary amendments introduced by the proclamation:
1. Addition of New Definitions (Article 2)⁶⁷
- “Representative of Victim Worker”: Any person legally authorized to represent and act on behalf of a principal.
- “Labour Attaché”: An officer assigned by the Ministry (in consultation with the Ministry of Foreign Affairs) deployed to a receiving country to monitor and protect the rights, safety, and dignity of Ethiopians employed overseas⁸⁹.
- “Memorandum of Understanding (MOU)”: An agreement regarding overseas employment concluded between the Government of Ethiopia and a receiving country or an employer in that country.
- “Domestic work”: Any household work performed for payment based on an employment contract with an employer⁸¹⁰.
2. Revised Scope of Application (Article 3)⁷¹⁰
The proclamation’s scope is expanded to explicitly apply to the overseas employment of Ethiopians facilitated by:
- Public employment organs
- Private recruitment agencies
- Direct employment arrangements
3. Updated Requirements for Education and Occupational Competence (Article 7)¹¹¹²
- For Domestic Work: Individuals must be trained and hold a certificate of occupational competence. Ethiopian citizens who have previously worked overseas can obtain this certificate without needing additional training¹¹¹³.
- For Skilled Work: Individuals must meet the required educational, professional, and work experience standards. An occupational competence certificate may also be necessary¹¹.
- Workers are only required to present their competence certificate after fulfilling all other employer requirements¹²¹⁴.
4. Payment to Employment Agencies (Article 10)¹⁵
A new provision allows that if an employer of a skilled worker (hired through an agency) does not cover the agency fee, the employee may pay up to one month’s salary in four installments. This does not apply to domestic work¹⁵¹⁷.
5. Requirement for Bilateral Agreements or MOUs (Article 12)¹⁵¹⁷
- For Domestic Work: Overseas employment is only permitted if a bilateral agreement or MOU exists between Ethiopia and the receiving country¹⁶.
- For Skilled Work: An MOU or bilateral agreement is required between the Ministry and a competent government authority or an accredited company in the receiving country¹⁶¹⁸.
- An agency may be permitted by the Ministry to establish an agreement directly with a company in a receiving country, provided the rights and safety of the employees are guaranteed⁴.
6. Establishment of the Ethiopian Overseas Employment Board (Article 15)⁴¹⁹
- The proclamation formally establishes the Ethiopian Overseas Employment Board to coordinate stakeholders and ensure the protection of rights, safety, and dignity of Ethiopians working abroad.
- Chair: Ministry of Labour and Social Affairs.
- Members: Includes representatives from the Ministry of Foreign Affairs, Ministry of Science and Higher Education, Ministry of Health, the Attorney General, and other key government bodies⁵.
- Duties: The Board will supervise the proclamation’s implementation, facilitate bilateral agreements, address rights violations, and raise public awareness²¹.
7. Overseas Employment Inspectorate (Article 20)²⁵²⁷
The Ministry or a competent authority is now mandated to assign an inspectorate to monitor recruitment agencies and ensure their compliance with the proclamation.
8. Enhanced Requirements for Agencies (Article 22)²⁶
- Applicants must have a paid-up capital of at least Birr 1,000,000 and all members must be Ethiopian citizens²⁶²⁸.
- New provisions allow for joint ventures with Ethiopian-born foreign nationals or foreign nationals for the employment of skilled manpower²⁹³⁰.
- Ownership Structure:
- 75% Ethiopian / 25% Ethiopian-born foreign national (Total capital: not less than Birr 2,000,000)²⁹.
- 80% Ethiopian / 20% foreign national (Total capital: not less than Birr 2,000,000)³¹³².
- The required guarantee fund must be deposited by Ethiopians in Birr and by foreign partners in foreign currency³¹.
- Ownership Structure:
9. Approval of Employment Contracts (Article 37)³⁵³⁶
All overseas employment contracts must be based on a model contract provided by the Ministry. These contracts must be signed by the employer, worker, and agency (if applicable) and approved by the Ministry to ensure the protection of workers’ rights, dignity, and safety³⁵³⁷.
10. Prohibited Activities for Agencies (Article 42)³⁸
Agencies are now explicitly prohibited from:
- Recruiting a worker who lacks a certificate of occupational competence.
- Withholding a worker’s legal travel documents.
- Failing to return a worker’s travel documents within one hour upon request⁴¹⁴².
11. Complaint Submission and Legal Finality
- Complaints (Article 43): Any victim worker or their representative can submit a complaint against an agency to the Ministry or appropriate authority⁴².
- Court Decisions (Article 59): Decisions by a court of law on issues of fact under this article are considered final⁴³⁴⁴.
12. Foreign Employers’ Guarantee Fund (Article 61)⁴²
Foreign employers are now obligated to deposit USD 100 per worker into a guarantee fund. This fund is intended to cover claims arising from breaches of contract. The Ministry may revise this amount based on market conditions.