YARDSTICK INTERNATIONAL COLLEGE

MASTERS OF BUSINESS ADMINISTRATION-2013

Assignment 2:

ANALYSIS OF THE REQUIREMENT OF THE LABOR PROCLAMATION

NO.1156/2019 AND THE FEDERAL CIVIL SERVANTS PROCLAMATION
NO.1064/2017 IN THE RECRUITMENT, SELECTION AND MAINTENANCE
OF LABOR.

By: DANIEL AWOKE

ID Number: MAO/1522/13

Course: HUMAN RESOURCES AND MANAGEMENT-MBA 622

Course Manager: Dr ABERA. D (PhD)

MARCH 8, 2022
HUMAN RESOURCE MANAGEMENT ASSIGNMENT 2

ANALYSIS OF LABOR PROCLAMATION NO.1156/2019

As it can be observed from introduction of this proclamation the main objective of Labour
Proclamation No. 1156/2019 is to establish worker-employer relations based on basic
principles of rights and obligations that guarantees the rights of workers and employers in
order to secure durable industrial peace, sustainable productivity and competitiveness.

The proclamation states that…

“WHERE AS, it is essential to ensure worker-employer relations are governed by basic

principles of rights and obligations with a view to enabling workers and employers to secure
durable industrial peace; sustainable productivity and competitiveness through cooperative
engagement towards the all-round development of our country;

WHERE AS, it has been found necessary to lay down a working system that guarantees the
rights of workers and employers to freely establish their respective associations and to
engage, through their duly authorized representatives, in social dialogue and collective
bargaining, as well as to draw up procedures for the expeditious settlement of labour disputes,
which arise between them;

WHERE AS, there is a need to create favourable environment for investment and
achievement of national economic goals without scarifying fundamental workplace rights by
laying down well considered labour administration; and determine the duties and
responsibilities of governmental organs entrusted with the power to monitor labour
conditions; occupational health and safety; and environmental protection together with
bilateral and tripartite social dialogue mechanisms; political, economic and social policies of
the Country;

WHEREAS, it has been found necessary to reformulate the existing labour law with a view to
attaining the aforementioned objectives and in accordance with the and in conformity with
the international conventions and other legal commitments to which Ethiopia is a party;

NOW, THEREFORE, in accordance with Article 55 (1) and (3) of the Constitution of the
Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: …”

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This proclamation is applicable to employment relations based on a contract of employment
that exist between a workers an employer including recruitment process. This scope is clearly
stated under section one article three of the proclamation as follow;

3. Scope of Application

1/ Without prejudice to Sub-Article (2) of this Article, this Proclamation shall be applicable
to employment relations based on a contract of employment that exist between a worker and
an employer including recruitment process.

2/ This Proclamation shall not, however, be applicable to the following employment

relations:
a) Contracts for the purpose of upbringing, treatment, care or rehabilitation;
b) Contracts for the purpose of educating or training other than apprentice;
c) Where the employee is a managerial employee;
d) Contracts of personal service;

e) contracts relating to persons such as members of the Armed Force, members of the Police
Force, employees of state administration, judges of courts of law, prosecutors and others
whose employment relationship is governed by special laws;

f) Contracts relating to a person who performs an act, for consideration, at his own business
or professional responsibility.

3/ Notwithstanding the provision of Sub-Article (1) of this Article:

a) unless the Council of Ministers by regulation decides, or an international agreement to

which Ethiopia is a signatory provides otherwise, employment relations between Ethiopian
nationals and foreign diplomatic missions or international organizations operating with in the
territory of Ethiopia shall be governed by this Proclamation;

b) The Council of Ministers may, by Regulation, determine the inapplicability of this

Proclamation to employment relations established by religious or charitable organizations;

c) The Council of Ministers shall issue Regulation governing conditions of work applicable
to personal services

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Under its part two the proclamation stipulates about the employment relations and the
conditions under which formations of contracts takes place. Accordingly article 4 of the
proclamation states that…

4. Element of a Contract of Employment

1/ A contract of employment shall be deemed formed where a natural person agrees directly
or indirectly to perform work for and under the authority of an employer for a definite or
indefinite period or piece of work in consideration for wage;

2/ A contract of employment shall be stipulated clearly and in such manner that the parties
are left with no uncertainty as to their respective right and obligation under the terms thereof;

3/ A contract of employment shall specify the type of employment and place of work, the rate
of wages, method of calculation thereof, manner and interval of payment and duration of the
contract;

Similarly issues related to duration of contract of employment are elaborated in section two
of this part of the proclamation.

SECTION THREE of part two of the proclamation states the obligations of the parties under
which obligation of employer and the employee are listed under articles 12 and 13
respectively.

Finally part two of the proclamation is concluded with articles that state the condition under
which termination of employment relations are to take place.

TERMINATION OF EMPLOYMET RELATIONS

23. General

1/ a contract of employment shall only be terminated upon initiation by the employer or

worker and in accordance with the provisions of the law or a collective agreement or by the
agreement of the parties.

2/ the amalgamation, division or transfer of ownership of an undertaking shall not have the
effect of terminating a contract of employment.

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Part three of the proclamation enlists about determination of wages and other employee
benefits as follow

DETERMINATION OF WAGES

53. General

1/ “Wages” means the regular payment to which a worker is entitled in return for the
performance of the work that he performs under a contract of employment.

55. General

1/ Wages shall be paid in cash, provided, however, that where the employer and workers
agree, it may be paid in kind. Wages paid in kind may not exceed the market value in the area
of the payment in kind and in no case may exceed 30% of the wages paid in cash.

2/ A Regulation of the Council of Ministers shall determine the powers and responsibilities of
a Wage Board which shall comprise representatives of the Government, employees and trade
unions together with other stakeholders that will periodically revise minimum wages based
on studies which take into account the country’s economic development, labour market and
other considerations.

56. Execution of Payments

1/ Unless agreed otherwise, wages shall be paid on working days and at the place of work.

2/ In case where the day of payment mentioned in Sub-Article (1) of this Article falls on
weekly rest day or a public holiday, the day of payment shall fall on the preceding working
day.

57. Payment in Person

Unless otherwise provided by law or collective agreement or work rules, wages shall be paid
directly to the worker or to a person authorized by him.

Section four of the proclamation discusses about modification of contract of employment

followed by section five which describes about temporary suspension of rights and
obligations arising from contract of employment

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Part six of the proclamation stipulates about the working conditions of women and young
workers where it gives special conditions for workers based on gender and age of employee.

Part seven of the proclamation discussed about occupational safety and health and working
environment. This is followed by part eight of the proclamation where the right of employers
and workers to form associations like trade unions and employee association are granted.

Part nine articulates the ways and procedures for resolution of labour dispute where dispute
between a worker and an employer or trade union and employers’ association in respect of
the application of law are discussed.

Part twelve of the proclamation lays down administrative measures and miscellaneous
provisions where conditions are placed regarding measures on violations of the proclamation.

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THE FEDERAL CIVIL SERVANTS PROCLAMATION NO.1064/2017

From analysis of The Federal Civil servant Proclamation No.1064/2017 it can be understood
that the main objective of the proclamation is to establish a system for adopting uniform
administration of civil servants and proper use of their knowledge and skill.

The proclamation states that…

WHEREAS it has become necessary to promulgate a law that enable the making of
fundamental changes in the system of recruitment and selection and the introduction of
National system for the certification of professional and occupational competence as well as
the subjecting of civil servants to undergo through such process and thereby build a Civil
service that could guarantee diversity and the sustainability of the country’s growth and the
enhancement and sustainability of the achievements of the civil service reform Program in
human resource management;

WHEREAS it has become necessary to establish a system for adopting uniform

administration of civil servants and proper use of their knowledge and skill;

WHEREAS it has become necessary to improve conditions of work so that government

offices could become competitive through retaining their employees and attracting new
entrants;

NOW, THEREFFORE, in accordance with Article 55(1) of the Constitution of the Federal
Democratic Republic of Ethiopia, it is hereby proclaimed as follows:

Part one of the proclamation gives definition of terminologies and concepts with in the
document and article four stipulates the scope of its application.

4. Scope of Application

This Proclamation shall be applicable to all offices and employees falling under the
definitions of “government institution” and “civil servants”.

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Section two of the proclamation discusses about the organizational structure, job evaluation,
salary scale and benefit. Articles under this section discuss about the Organisational
structures, Job evaluation methods and salary scale of government institutions. Articles under
this section of the proclamation are discussed as follow…

5. Organizational Structure of government institution

 Any government institution shall study its organizational structure and manning plans that
enable it to achieve its goals, and submit same to the Ministry for approval.
 The Ministry shall undertake studies on the appropriateness and effectiveness of the
organization of the federal executive organs and submit reorganization proposals to the
Council of Ministers where necessary.

6. Job Evaluation

 The Ministry shall adopt appropriate job evaluation methods and enforce the
implementation of same in government institutions.
 Any government institution shall prepare job descriptions for new positions and submit
same to the Ministry for grading.
 Job evaluation and grading shall be conducted in accordance with regulations to be issued
by the Council of Ministers.

7. Salary Scale

 The salary scale applicable to civil servants shall be determined from time to time by
considering the Government’s financial capability, the general living conditions of the
society, price levels and other relevant factors.
 The Ministry shall, in collaboration with the concerned government institutions, upon
undertaking studies prepare salary scale and submit same to the Council of Ministers, and
supervise its proper implementation upon approval.
 The salary scale shall contain the base pay, the ceiling and step increments of each grade.

8. Equal Pay for Equal Work

All positions of equal value shall have equal base salary.

9. Payment of Salary

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 Any Government office shall, at the end of every month, make payments of salary to civil
servants or their legal representatives.
 The Salary of a civil servant shall not be attached or deducted except in accordance with:
a) A written consent of the civil servant;

b) A court order; or

c) The provisions of the law.

 Monthly deductions from the salary of a civil servant to be made pursuant to sub-article
2(b) or (c) of this Article shall not exceed one third of his salary.

10. Allowance

 Any allowance shall be paid only for the purpose of carrying out the functions of the civil
service.
 The Ministry shall undertake studies on the types and payment of allowances and submit
same to the Council of Ministers and, upon approval, supervise their implementation.

Section three of the proclamation describes the human resource planning, deployment and
performance evaluation methods to be used by public institutions.

11. Human Resource Planning

 The purpose of human resource planning shall be to forecast the staffing requirement for
achieving the strategic objectives of a government institution, to take actions necessary
for availing the required human resource, in type and number, for developing and
properly utilizing same and for reviewing the results, from time to time, to make
improvements thereof.
 Any government institution shall, based on its strategic plans, study and implement short,
medium and long-term human resource plans.
 Vacant positions shall be filled through promotion or recruitment or transfer or
redeployment in accordance with human resource plans.
 The Ministry shall issue directives on human resource planning.

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12. Eligibility to Join Government Institution and Competence Certification System

 The Ministry shall prepare national criteria and parameters to establish eligibility and
competency certification system whereby candidates for vacant positions shall be
recruited and promoted on the basis of competition.
 The criteria and parameters shall be implemented in accordance with regulations to be
issued by the Council of Ministers.
 An institution may be established for the implementation of the eligibility and
competency certification system referred to in sub-article (1) of this Article.

13. Recruitment and Selection

 Any type of recruitment of a civil servant shall be effected only on the result of
examination conducted on the basis of nationally set criteria or on the basis of any other
type of objective certification of professional and occupational competence.
 There shall be no discrimination among job seekers or civil servants in filling vacancies
because of their ethnic origin, sex, religion, political outlook, disability, HIVIAIDS or
any other ground.
 Without prejudice to the provisions of Article 48 to 51 of this Proclamation, vacant
position shall be filled only by a person who meets the qualification required for the
position and scores higher than other candidates.

14. Ineligibility

 The following shall not be eligible to be civil servants:

a) A person under the age of 18 years;

b) Any person who has been convicted by a court of competent jurisdiction for offences of
corruption, breach of trust, theft, fraud or rape unless five years have lapsed from the date the
penalty is served or is barred by limitation or remitted by pardon;
c) A person having no certificate of competence;
d) Any person who is unwilling to take oath of fidelity in accordance with Article 17of this
Proclamation.
 Without prejudice to sub-article (1) (b) of this Article, a person whose service is
terminated from any government institution on grounds of disciplinary offence in
accordance with Article 88 of this Proclamation shall not be recruited before the lapse of
five years from the date of termination of his.
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 Without prejudice to sub-article (1)(c)of this Article, any candidate shall submit medical
certificate, except HIV1AIDS test, to prove his fitness for service and written testimony
of police to prove that he has no record of crimes referred to in sub-article (1)(b)of this
Article.
 Notwithstanding sub-article (1)(a) of this Article, the Ministry may issue directives on
circumstances in which young persons above the age of 14 and under 18 may be recruited
as civil servants and on the conditions of work applicable to them.

15. Employment of Foreigners

Without prejudice to Article5 (2) of the Proclamation providing Foreign Nationals of

Ethiopian Origin with Certain Rights to be Exercised in their Country of Origin under
Proclamation No 270/2002 and Article 21(2) of this Proclamation, a person who is not an
Ethiopian national may not be eligible to be a civil servant.

16. Vacancy Announcement and Recruitment Procedures

 Any government institution shall advertise every vacant position to invite candidates to
apply for the position.
 Notwithstanding sub-article (1) of this Article, whenever there is shortage of
professionals in the labour market, a government institution may solicit graduates of
higher educational institutions in cooperation with the institutions and recruit them
through competition.
 Graduates to be recruited pursuant to sub-article (2) of this Article shall be required to
present certificates of competence referred to in sub-article (1)(a) of Article 14 of this
Proclamation.
 The Ministry shall issue directives on detailed recruitment procedures.

18. Determination of Starting Salary

Any newly appointed civil servant shall be paid the base salary as fixed by the civil service
salary scale for the position he has been appointed.

19. Probation

 The purpose of probation shall be to prove the competence of a newly appointed civil
servant through follow-up of his performance.

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 The selected candidate shall be served with a letter of probation recruitment signed by the
head or any other authorized official of the government institution, stating the title and
grade of his position, his salary, and date of commencement of his job together with job
descriptions of his position.
 The period of probation of a civil servant on the position of his appointment shall be for
six months; provided, however, that if the performance result is below average, it may be
extended for an additional period of three months.
 The service of a probationary civil servant shall be terminated where the cumulative
performance evaluation result is not average or higher for the extended period of
probation.
 Where the civil servant on probation is absent from his work due to occupational disease
or employment accident, without prejudice to the provisions of Article 59(3) and (4) of
this Proclamation, he shall be allowed to complete the remaining probation period
following the date of his recovery from sickness or injury.
 Where the civil servant on probation period is absent from his work due to force majeure
for a period less than one month, the performance evaluation shall cover only the period
in which he was present at work.
 Notwithstanding the provision of sub-article (5) of this Article, a civil servant on
probation is absent from his work due to maternity leave, for a period of more than one
month, she shall be allowed to complete the remaining probation period following the end
of her maternity leave; provided, however, that if her absence from his work is less than a
month, her evaluation shall cover only the period in which she was present at work.
 Unless otherwise provided in this Proclamation, a probationary civil servant shall have
the same rights and obligations with that of a civil servant who has completed his
probation.
 Any officer who fails to timely evaluate the performance of a probationary civil servant
shall be liable to disciplinary penalty.

20. Permanent Appointment

 Where a civil servant on probation has recorded average or higher performance result, he
shall be served with a letter of permanent appointment.
 If performance evaluation of a probationary civil servant is not carried out before the
expiry date of the probation period and without prejudice to Article 19(2) and (3) of this
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 Proclamation, the performance evaluation shall be carried out within one month following
the expiry date of the probation period and the probationer shall be made permanent civil
servant from the date of his recruitment as probationer.

21. Temporary Employment

 Without prejudice to sub-article (2) of this Article, a government institution may appoint
a temporary civil servant only for a job which is not of a permanent nature; provided,
however, that it may, where circumstances so require, appoint a temporary civil servant to
a permanent position.
 A government institution may appoint a foreign national on temporary bases, where it is
proved that it is impossible to fill a vacant position that requires high level professional
by an Ethiopian through promotion, transfer or recruitment.
 The appointment of temporary employee of an Ethiopian or a foreign national, their rights
and obligations as well as the conditions of work applicable to them shall be prescribed
by regulation to be issued by the Council of Ministers.

22. Outsourcing

 Where necessary and upon obtaining the permission of the Ministry, any government
institution may outsource certain positions or tasks, that
 The Ministry shall issue detailed directives regarding positions and tasks that may be
outsourced to private enterprises or other institutions.

25. Selection for Promotion

1/ Any civil servant shall present certificate of competence issued pursuant to Article 12(1) of
this Proclamation to compete for promotion.
2/ Any civil servant who has completed his probation period may compete for promotion
unless he is disqualified in accordance with the detail provisions of relevant directives on
promotion.
3/ The Ministry shall issue detailed directives on other conditions applicable to the promotion
of civil servants.
31. Performance Evaluation
1/ The purpose of performance evaluation shall, based on work plans, be to:
a) Enable a civil servant to effectively discharge his duties in accordance with the expected
volume, quality, time and cost;
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b) Evaluate a civil servant on continuous basis and identify his strength and weakness with a
view to improving his future performance;
c) Identify the training and improvement needs of a civil servant;
d) Provide incentives based on results;
e) Enable the government institution to make its personnel administration decisions based on
facts.
2/ The performance evaluation system to be implemented by a government institution shall:
a) Enable transparent and evidence based objective evaluation of performance results;
b) Enable the verification of actual performance results in comparison with the planned
budget, time, volume and quality;
c) Encourage team work and common initiatives;
d) Promote healthy competition among civil servants and teams to improve institutional
performance results;
e) Enable impact assessment of performance results among successive and interrelated tasks.
32. Salary Increment and Incentives
1/ A civil servant shall be entitled to salary step increment every two years based on his
performance evaluation result.

Section four of the proclamation discusses about the working hours and leaves of civil
servants where the regular working hours of civil servants shall be determined on the basis of
the conditions of work and may not exceed 39 hours a week.

Section five discusses about the conditions of work applicable to members of the society
deserving affirmative action where it lays down conditions of work applicable to female civil
servants and conditions of work applicable to persons with disabilities
Section six describes the occupational safety and health of civil servants.

Section nine discussed about disciplinary measures and grievance handling procedure of
government institutions.

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DIFFERENCES AND SIMILARITIES OF THE TWO PROCLAMATIONS IN
RELATION TO HRM.

The first difference of the two proclamation can be observed from their objective as the main
objective of Labour Proclamation No. 1156/2019 is to establish worker-employer relations
based on basic principles of rights and obligations that guarantees the rights of workers and
employers in order to secure durable industrial peace, sustainable productivity and
competitiveness. On the other hand the main objective of The Federal Civil servant
Proclamation No.1064/2017 is to establish a system for adopting uniform administration of
civil servants and proper use of their knowledge and skill.

In addition to this the two proclamations has difference in their scope of application as the
Federal Civil servant Proclamation No.1064/2017 shall be applicable to all offices and
employees falling under the definitions of “government institution” and “civil servants”.
Whereas the Labor Proclamation No. 1156/2019 shall be applicable to employment relations
based on a contract of employment that exist between a worker and an employer including
recruitment process.

With regard to the Human resource management practice Federal Civil servant Proclamation
No.1064/2017 stipulates the organizational structure, job evaluation, salary scale and benefit
of Government institutions. Accordingly any government institution shall study its
organizational structure and manning plans that enable it to achieve its goals, and submit
same to the Ministry for approval.

The human resource management aspects in the case of Labor Proclamation No. 1156/2019 is
left to the employers and the employee employer relations are based on a contract of
employment that exist between a worker and an employer including recruitment process.
The similarity of the two proclamations can be seen in the Occupational, Health and safety as
in both proclamations employers shall have the responsibility to ensure that the work place
does not cause hazard to the health and safety of workers and provide civil servants with
protective devices and materials and give them instructions on their utilization.

Similarly both proclamations have special provisions where employers have the
responsibility to improve working conditions of women and young workers as well as
workers with disabilities.

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