The concept of probation serves as a trial period for newly recruited workers in the Ethiopian labor market. Under Ethiopian employment law, the terms worker and employee are used interchangeably as the legislation does not differentiate between the two. During this phase, an employer evaluates not only the technical competence and fitness of the worker for the specific job but also their general suitability and personal traits. If a worker is deemed unsuitable, the employer maintains the right to terminate the employment contract without prior notice, severance pay, or compensation. Reciprocally, an employee is also permitted to resign from their new position without providing advance notice to the employer.
The transition from the previous Labour Proclamation Number 377/96 to the current Labour Proclamation Number 1156/2019 introduced significant amendments to the rules governing probation. One of the primary changes involves the duration of the period, which was extended from forty five consecutive days to sixty working days. By shifting from consecutive days to working days, the actual calendar duration of probation effectively increases to approximately sixty eight days, assuming a standard forty eight hour work week. Additionally, the new proclamation clarifies that the probation period begins precisely from the first date of employment, a detail that was notably absent in the previous legislation.
Probation is not a mandatory legal requirement for a valid employment contract but is instead a matter of mutual agreement between the parties. If an employer sets a probation period as a precondition for full employment and the worker accepts, the agreement must strictly adhere to legal formalities to be valid. The law requires that such an agreement be made in writing. This requirement implies a formal document signed by both parties. A unilateral letter from an employer or a mere notice of probation, even if signed as received by the employee, does not constitute a valid agreement. This principle was illustrated in the case of Berhe Hagos General Contractor versus Ato Gemechu Addis, where the Cassation Bench held that simply receiving a probation letter did not establish a valid agreement. Subsequent judicial decisions have further clarified that this written agreement must also be certified by two witnesses to be enforceable.
Regarding the timing of the agreement, the proclamation requires it to be in writing but does not explicitly state exactly when it must be signed. However, the purpose of probation is to assess suitability from the outset. If no agreement is signed on the first day of employment, it is generally inferred that the employer has accepted the worker as qualified. Entering into a probation agreement several days after work has commenced undermines the legal intent of the trial period.
The length of Ethiopia’s probation period remains relatively short when compared to other international jurisdictions. While the current limit is sixty working days, other nations such as Germany allow for up to six months, and countries like China may extend it to six months depending on the contract duration. Within Ethiopia, the sixty day limit for private sector workers is also significantly shorter than the six month standard applied to civil servants, public prosecutors, and employees of the National Bank.
The law explicitly prohibits the probation of a worker who is re-employed by the same employer for the same job. This prevents employers from perpetually cycling employees through trial periods. However, this rule raises questions regarding what constitutes the same employer or the same job. In the context of holding companies, subsidiaries are generally viewed as separate entities due to their operational and organizational autonomy. Therefore, moving from one subsidiary to another might allow for a new probation period. Regarding the nature of the work, the Amharic version of the law suggests that the same job refers to the specific tasks previously performed. Consequently, a change in job grade or a shift to a significantly different role could legally justify a new probation period, even if the worker remains with the same organization.
During the probation period, workers generally enjoy the same rights and obligations as permanent staff unless the law or a collective agreement specifies otherwise. While minimum labor rights are protected, practical limitations often exist regarding union membership or the immediate accrual of certain benefits like maternity leave. If employment is terminated during probation, the employer is still obligated to provide proportional payment for any annual leave that was accrued but not taken.
The most significant effect of probation is the employer’s discretion to terminate the contract based on unfitness. This termination does not require notice, severance, or compensation. While unfitness might seem like an objective standard, courts typically defer to the employer’s subjective assessment, and workers generally cannot challenge this by presenting evidence of their competence. However, this discretion is not absolute. Termination remains unlawful if it is discriminatory—based on factors such as sex, religion, political outlook, or pregnancy—or if it occurs without any form of actual assessment or evaluation by supervisors.