Tumsa Endowment for the Development of Oromia

1. Introduction

1.1. Back Ground

Tumsa TEDO for the Development of Oromia is a TEDO organized under the law of
Ethiopia proclamation number 1113/2019 in 2019 GC. According to the memorandum of
Association of the TEDO, there are three tiers structure. Namely: the Board of directors, the
CEO / Management or sectors of the TEDO with clear demarcation of authorities and
responsibilities and independent companies of the TEDO.

It is committed to contribute to the sustainable development efforts in the region. In light of

the changing business environment along with changes and development of the country‟s
social, political and economic aspects as well as the global and technological trends, The
TEDO has clearly stipulated its mission, vision and core values to be strictly adhered and
committed by all its shareholders, management and employees. So, in order to achieve these
objectives TEDO decided to prepare this human resource polices & procedural manual to
manage the human recourses.

Accordingly, this human resource polices & procedural manual will be used as a guide line
in the TEDO. Human resource polices & procedural manual is more than managing human
resources. It is an essential part of organizational management and cannot be seen as a
separate task to be human resource staff. HRM provides an institution with an effective work
force in order to meet its vision, mission and objectives. Effective human resource
management uses systems and tools to bring together the right number of people, with the
right attitude and skills, in the right place, at the right time.

The goal of this human resource management manual, tools and activities is to help
employees who make up tumsa TEDO to be successful in their engagements and to work
well together on hand and the TEDO and the companies under it achieve their objectives of
establishment on the other.

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1.2.Objectives of the Manual

This manual is a statement of human resource policy to be followed by all management
members and employees of the tumsa TEDO. The main objectives of this manual are:
i. To serve as a general operation tool to assist planners, decision makers and
implementers in planning, organizing, placing and administering the human resource
of the TEDO,
ii. To serve as a tool to give equal employment opportunity, to treat all staff equally and
in compliance to organizational and national rules and regulations, to insure that work
conduct and procedures are maintained, and that high standards of behavior and
performance are maintained;
iii. To create a harmonious working relationship between the TEDO and its employees to
facilitate a conducive working atmosphere and maintain a satisfied and self-controlled
work force;
iv. To sustain mutual understanding and peaceful working conditions between the TEDO
and its employees by clearly identifying the rights and obligations of the parties;
v. To ensure that human resource policies are managed in a consistent, transparent,
equitable and effective manner;
vi. To give basis for human resource planning, recruitment, promotion, transfer and
separation;
vii. To create a sense of collective and individual responsibility in the management of the
TEDO and protecting their interests;
viii. To determine and observe the TEDO/Companies‟ discipline and grievance handling
mechanisms;
ix. To give direction in the utilization of human resources through strategic integration;
x. To serve as a reference and help minimize possible flaws in decision making resulting
from subjective judgments;
xi. To ensure the adherence of the TEDO principles of corporate governance by
promoting equity and good governance in their human resources management;
xii. To ensure transparency, consistency and uniformity in decision making;
xiii. To follow up operational and administrative systems and institute control and
supervision.

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1.3. Scope
This manual is applicable in all human resource matters of Tumsa TEDO for the
Development of Oromia.
1.4.Definition of terms
i. “Organization” means; Tumsa TEDO for Oromia Development.
ii. “Employee” means; a person who entered into an employment agreement of any kind
with the TEDO.
iii. “Labor law” means; the Ethiopian labor law No.1156/2011.
iv. “Manual” means; this Human Resource Management Policy & procedure manual.
v. “Permanent Employee” means; a person who made employment agreement for
unspecified time with the Organization.
vi. “Fixed Term Contract Employee (Here in after called contract employee)” means; a
person who made employment agreement for definite period/for the accomplishment of a
given task in the Organization.
vii. Casual/ temporary Employee” means; a person who is hired to perform a defined duty on
a daily or weekly basis.
viii. Consultant “means, a person who is hired for the accomplishment of a defined
expertise assignment.
ix. “Transfer “means, assignment of an employee from one work unit/company to other for a
defined period of time or on a permanent basis.
x. “Promotion” means, movement of employees from a lower salary grade to a higher salary
grade within the same job hierarchy or on a different job.
xi. “Demotion “means, assignment of employees from a higher grade job to a lower grade job
with salary decrease.

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2. Rights and Obligations of TEDO and Employees

2.1.Obligations of TEDO:
i. Inform employees about the vision, mission, objective and strategy as well as
procedures and work plan of the TEDO;
ii. Provide in accordance with the employment contract, all equipment required for the
job and ensure that work places are suitable for healthy working, so that theemployee
can full fill his duty as per the required time and quality;
iii. Implement government directives, rules, and regulations pertaining to the rights
and the benefits of the employee and shall also implement, if there are any
directives and additional obligations, set by the TEDO at any one time;
iv. Pay the salary of the employees every month between 27th and 30th and other
benefits on time
v. Not withhold or cut the salary of any employee except with the consent of the
employee or in accordance with the administrative policy and procedure manual of
theorganization or by order of the court.
vi. Freely issue to each employee an identity card (ID). The TEDO shall renew the ID
free of charge. However, in cases of request for replacement due to mishandling or
loss, the employee shall cover the expense.
vii. Keep personal file of all employees which contains letter of employment, salary,
various leaves taken at different times, health certificate and police clearance, period
of promotion, testimonials of educational qualification and work experience, directives
related to work and letters of testimonials regarding the employee, letters of
disciplinary measures, etc.,
viii. Issue appropriate certificate of service to employees when an employee leaves
ix. Make all necessary payments upon termination of contract of employment;
x. Support by providing the necessary material, office, and related services when labor
union requests;
xi. Collect the provident fund of the employee every month.
xii. Make the performance evaluation of each employee every six months by the
immediate supervisor of the employee and shown to the employee for his comments
and signature prior to its approval by the responsible executive;
xiii. Take the necessary measures to protect the safety and health of the employee and
prevent accidents related to his work. It shall also follow the directives set by the

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appropriate bodies regarding these measures;

xiv. Effect the termination of the contract of an employee in accordance with
proclamation No 42/93, Article 35, when the need arises.
xv. Bail out an employee who issued for causing damage while conducting his/her
assignment until finial trial. But if the employee causes accident using the
organization's vehicle while conducting activities outside his assignment,
transporting passengers, or freight, the organization shall not bail him out;
xvi. Provide training on accident prevention methods and the usage and handling of
equipment by professionals whenever necessary;
xvii. Ensure that the general organizational set-up of the organization, i.e., the
structure of the building, the installation of machineries, the supply of raw material,
the placing/storage of spare parts, modes of production, etc, and related matters are
not hazardous to the health of the employees;
xviii. Protect the employee from arbitrary transference, suspension or dismissal and
other similar forms of penalties for appeal complaint or requesting advice and
assistance regarding his rights in accordance with the law from the concerned
authority;
xix. Maintain the confidentiality of the personal file/record of every employee and allow
him/her to have access to his/her personal file in the presence of the Personnel Head
or his designee;
xx. Design and conduct trainings and educational programs that would help improve
the quality and productivity of the company;
xxi. To respect the human dignity.
xxii. To cover the costs of the medical examination of the workers whenever such
medical examination required by law or the appropriate authorities;

2.2.Obligations of the Employees

i. Abide by the rules, regulations, policies and directives, procedures and manuals
of the TEDO;
ii. Properly and efficiently conduct his/her duties utilizing his full capability and
energy and shall exert the necessary effort to improve service or boost production;
iii. Respect and obey all supervisions made and directive given by his/her
immediate supervisor in relation to his work;
iv. Protect the property of the TEDO and the equipment for which he/she is

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responsible, utilize them economically in a manner that could make them long-
lasting, and shall return them back on time during termination of his/her
employment contract;
v. Assigned in activities out of his job description during time of crises or
catastrophe likely to cause damage to the organization;
vi. Not follow acts which may harm the physical and mental well-being of himself
and his colleagues, as well as the assets of the organization;
vii. Not take any property or transfer them to other body or use them for purposes not
related to the work of the organization or the corporate office without the
permission of the concerned authority realizing that it is illegitimate to commit
suchacts;
viii. Take by directives related to health care set by the organization and take
vaccinations provided; respect other directives related to health care and accident
prevention mechanisms and implement them;
ix. Not leave his/her working place during working hours without the permission of
his/her immediate supervisor;

x. Accept either written or oral order of his superior to cover the duties of an
employee who is off-duty;
xi. Make every effort to eliminate embezzlement wastefulness, and abuse of power;
xii. Have health checkup when situations dictate or when the Organization demands to
do so;
xiii. Not carry out his personal activities during the working hours of the Organization;
xiv. Not be absent from work without permission of his immediate supervisor;
xv. Shall have the responsibility of notifying to the management of the Organization
about an employee who causes damage on the property or on a fellow employee;
do battleor steals;
xvi. Actively participate in meetings and discussion forums related to work which
are organized by the organization;
xvii. Reimburse the cost of lost equipment given to him by taking into consideration
the depreciation at market value; Besides, the employee shall make ready all
properties that are under his control for annual inventory or whenever he is asked
todo so;

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2.3.Right of Employer ( TEDO)

i. Develop, amend and change wholly or partially its organizations structure, job
positions and staffing plan, salary scale & benefit schemes and implement
accordingly;
ii. Issue, amend or change or delete policies, guidelines and procedures related to work
and employees‟ relations;
iii. Hire, promote, transfer, demote, suspend, reprimand and fire its employees in
accordance with its own human resource management policies and relevant laws of
the country and the decisions made on the basis of these;
iv. Plan the activities of the organization, assign employees, and supervise the volume
and quality of their works;
v. Use committee or other appropriate ways to gather information on competence,
integrity, reliability, social participation, etc of employees to be recruited and
assigned to the Organization through employment, transfer, etc.

2.4.Right of Employee
i. Receive salary and benefits in accordance with policies and procedures of the
Organization;
ii. Compete or apply for promotion, transfer or change of work place subject to the contract
of employment with the organization;
iii. The employee has a right to get safety material as per the policy and procedure of the
Organization.

2.5.Major TEDO Policies

i. To create a strategic link between its HRM and its business objective, the TEDO shall put
in place a reliable and efficient human resource plan. The organization shall put in place a
management succession system that will help ensure an internal supply of competent
managers and key professionals.
ii. The policy for external recruitment and selection at the TEDO is to facilitate the
employment of the best competent and qualified applicants for available positions and
organization‟s commitment to equal employment opportunity.
iii. It is the policy of the Organization in compliance with the law of the land, to provide
equal opportunity in employment and promotion. The TEDO shall recruit people with the

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highest standard of efficiency, competence and integrity among applicants for

employment as well as competing employees for promotion.
iv. The TEDO does not rehire ex-employees who had left the organization due to
disciplinary and inefficiency reasons.
v. The TEDO may hire employees whose service is intended to be for definite period of
time. Outsourcing may also be considered as an option to in-house permanent
employment.
vi. Promotion will be based on merit and proven ability. Accordingly, the TEDO always try
to place and fill vacant posts with most qualified personnel from the existing employees,
without and prejudice to the recruitment of fresh talent at all levels or even from outside
the organization.
vii. The TEDO always retains the right to transfer its employees.
viii. The TEDO believes in practice a systematic movement of employees from one job to
another over the course of time. The job assignments may be in various functional areas
of the organization or movement between jobs in a functional area.
ix. The TEDO shall provide a short range management development programs based on a
career and management succession plan.
x. The TEDO believes that effective performance management is essential to ensuring
productivity; the TEDO will institute an effective pay for performance system whereby
individual employees are measured accordingly.
xi. The TEDO is committed to ensuring participatory management, which will provide the
chance for the active involvement of employees. The organization will organize and
delegate work in a flexible ways as much as possible, in order to individuals and groups
of employees will be actively involved in the work of goal setting and change
management within the organization.
xii. The organization shall promote timely, open and honest communication system with a
view to creating transparency and an environment in which individuals can freely
exchange their opinions. All employees shall, through their work behavior, communicate
the values espoused by organization.
xiii. The TEDO strives to develop a working culture of treating every customer as a king and
a culture that helps bring about more effective and efficient services, honesty,
transparency and accountability.

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xiv. The TEDO provides training support to its employees on the basis of the organization‟s
needs, its priorities, and enhancement of employee‟s productivity. The TEDO expects
delivery of service for a minimum period of time on the completion of training otherwise
all costs should be repaid by the employee.
xv. Employees are entitled to leave with and without pay as stipulated in the labor
Proclamation and other relevant law as appropriate.
xvi. The TEDO shall terminate an employment as per the Labor Law
xvii. TEDO shall draw rules and regulations that are necessary to execute its operations
efficiently and effectively. Any breach of such rules or regulations shall, therefore, be
adequate ground for taking disciplinary measures.
xviii. Employees have the right to lodge their complaints against administrative action to the
higher organ of the organization

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3. Employment
3.1.Recruitment
The primary objective of recruitment is to secure high standards of competence by providing
equal employment opportunities for all applicants and is aimed at ensuring that high quality
and competent employees are employed to carry out their work effectively and
efficiently. The human resources & property administration section maintains the overall
responsibility for the recruitment process at TEDO and shall bear the responsibility of
managing and coordinating the recruitment process.

Recruitment is initiated based on either an opening of new project or vacancies created as a

result of resignation, transfer, dismissal or death of an employee. Wen recruitment of
employee is required as a result of an opening of a new project the bases for the request
should be the manpower plan of the given project or department. The Finance and
administration department validate the appropriateness of the request whether the vacancy is
included in the manpower plan and budget or not. The Finance and administration
department after validating the request forward to the higher body for approval and prepares
announcement if the response of the CEO is positive. The recruitment process starts by
announcing the vacancy. The vacancy announcement could be internal or external. External
vacancy announcement is made when the required skill is not available internally. The
external vacancy announcement is made using local newspapers, or bulletins and /or the
TEDO‟s/ Organization‟s notice boards. Internal vacancy announcement is made on notice
board or by inter-departmental memos.

The vacancy announcement includes: title of the vacant position, major duties and
responsibilities, minimum educational qualification, experience requirements and special
training (if required), application procedures, closing date for the submission of application,
salary (When found necessary), work location and other related data.

All applications related to employment are directed to the Human Resource and property
administration section. Human Resource and property administration section registers and
collects applications based on the requirements listed in the announcement. Candidates are
required to apply within the time limit of the vacancy announcement. No application shall be
accepted after the deadline. If the dead line falls on holidays and weekends, the next working
day's becomes the last day for application.

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3.2. Selection
The human resources & property admin will be involved in the short listing process, set pre-
screening criteria and perform pre-screening. Applicants who pass the pre– screening criteria
are invited for interview or written examination or both, as appropriate. Selection shall be
carried out by a committee. The member of the committee shall include chairperson and two
members assigned by CEO or finance & administration manager and HR & property Admin
(secretary). Responsibilities of the committee chair Person has guide the committee
democratically, present committee's proposal on employment, reports on absentee committee
members who continually fail to attend sessions. Duties and Responsibilities of the Committee
secretary has prepares agenda, sets the date and time of meetings and informs to the members,
verify that the vacant post is included in the manpower plan, and sees to it that the job
description is prepared for the post, takes minutes of the meetings, obtains the signatures of the
members and present to the chair person. When disagreement arises among the selection
committee the issue should be presented to the finance and administration department manager.
At the time of interviewing candidates finance and administration manager will involve in the
selection process. If required, the Organization could invite external examiners from accredited
institution/s. The outcome of the final selection shall be known to the, finance and
administration manager. The finance and administration department manager gives its
comments on the proposal of the selection committee. If approves, he directs the issue to the
HRM and property Administration officer. HR and property Administration officer
communicates the applicant/s by posting the interview or examination result on the
Organization‟s notice board and invites the one with the best result for signing a contract
agreement. If the one who stood first in the selection fails to sign agreement within the
specified time the Organization could consider the next candidate. All candidates for permanent
contract employment could go medical examination before employment (if necessary).
Medical examination is given only after the employee successfully passes the evaluation
criteria. Medical examination shall be conducted in Hospitals/ Higher Clinic where the TEDO
has concluded agreement or in government hospitals/higher clinic. It may be required the
candidate to produce certificate from police providing clearance for any criminal activity.
At the time where two applicants, man and women, score equal points, the women applicant
shall be favoured.

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All department head employments must be approved by the CEO of the TEDO. Employments
for all positions below departmental level shall be approved by the finance and administration
department manager and inform CEO.
3.3.Placement
Those selected are awarded letter of employment signed by the CEO or finance and
administration manager as appropriate. The employment letter should specify the job title, type
of employment, salary and associated benefits, date of commencement of the job and other
information deemed necessary. The letter of employment shall be accompanied by job
descriptions. The job description should specify: Name of the employee, job information,
purpose of the job, detailed duties and responsibilities, expected results, performance indicator,
competency requirements, approval of the immediate supervisor (by his signature) and
employee‟s acknowledgment for testifying his /her agreement by his/her signature.
3.4.Orientation
The TEDO could spend considerable time and money to recruit and hire new employee which
is appropriate to bring about a person who could perfectly match for the vacant job. The new
recruit to perform effectively he/she need to be given proper introduction to the TEDOs
expectations. The orientation should cover, but not limited to:
 All aspects of the job, organizational life and culture.
 Institutional issues: history, organizational structure, strategy, work plan,
policies, regulations and commitment ;
 Pay policy: salary system, benefits, vacation, hours of work, etc.
 Outside contacts: clients, board members, consultants and others.
3.5.Probation period
The probation period for all permanent contract positions is 60 days. Performance evaluation
format shall be filled up by the respective supervisors 5(five) days before the expiry date of the
period and the appropriate decision must be taken timely.
The candidate who is found fit for the job is awarded an employment letter and is made to sign
an employment contract agreement.
Any employee who completed 60 days of probation period whether he/she received
employment letter or not is considered as permanent contract employee of the Organization. If
the performance of the candidate is not satisfactory, then a letter of termination will be issued
to him/her. The Organization and the employee have the right to terminate the employment
contract at any time during the probation period without making any notification. For

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terminating the employment contract after the probation period, both parties are required to
give at least a one month notice. Payments associated with termination shall be governed by the
Ethiopian Labour law.
An employee who terminates his employment has the responsibility of giving back all
documents and or equipment given to him. Failure to do so will make him/her responsible for
all loss and / or damage.
3.6.Employment Records
HR & property administration of TEDO are required to maintain a full employee record file for
all employees. A new recruited employee is required to fill a “personal history form” and give
copies of testimonials to the Organization for any reference required.

A record file opened for a new recruit should initially include: Vacancy announcement, original
or copies, application letter of employee for employment and other documents attached,
employment test results (interview and /or written exam), copy of letter of appointment,
permanent employment contract form signed after probation, job description authenticated by
the employee‟s signature, a personal History form, and copies of all testimonials.

The employee is responsible for notifying to the Organization all changes in his/ her personal
status. Failure to do so will result in denying oneself from all advantages and/or benefits
associated with these changes.
3.7.Employment of Management Staff
The employment process of the management staff is made by the CEO and approved by the
Board of Directors.
3.8.Employment of External Experts
The Organization may employ or hire external experts or consultants for a specific assignment;
such assignments usually include: perform external audit, organizational structure, training,
legal service and etc. Employment of these experts is not governed by this manual for they are
employed based on different agreements. Employment of such experts is usually initiated by
the CEO and approved by the Board of Directors.

The contract agreement that is entered between the Organization and these experts should
specify all the terms and conditions required from both parties. This contract of agreement
should be prepared by the legal Service of the Organization and reviewed and signed on behalf
of the Organization by the CEO or by finance & administration manager (conditionally).

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3.9.Temporary Placement
When a vacant post arises due to sudden resignation, death or termination of a certain work
department head, the management shall assign temporary personnel to act as Head of the unit
until the post is filled. However, such temporary placement shall not exceed six months.
3.10. Acting Appointments
The primary purpose of acting appointments is to provide TEDO with a means of filling
positions that are vacant on a temporary basis. However, such appointments may also be
used to provide interim assignment for vacant positions that are in the process of being
filled. This assignment must be done in accordance with Ethiopian Labor Law.

Recruitment criteria for the position in respect to: merit, ability, experience, qualifications
and relative seniority. Acting Appointments shall be made in writing and shall specify the
reasons for the appointment, the duration of the appointment and in case of a vacant
position, the steps that will be taken to fill the vacancy on a long term basis. Acting
Appointments shall not be back dated. Acting appointments shall be subject to a maximum
period of 180 days.
3.11. Acting allowance
If a non-management level employee is required to act for a continuous period of more
than 120 days in a position of a higher grade than their own, they shall receive an
acting allowance equivalent to the difference between their existing basic salary and
the minimum of the scale for the job in which they are acting.

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4. Conditions of Service
It is the primary duty of employees of the organization to fulfill the tasks assigned to them
under their job descriptions and as per the goals they set with their supervisors.
4.1.Working Time
i. As a general rule, Tumsa TEDO bases its work and employee remuneration on forty two
and half (42.30) hours working in a week.
Monday-Thursday Friday Saturday
Morning 8:30 AM-12:30 AM 8:30 AM-11:30 AM 8:30 AM-12:00 AM
Afternoon 1:30 PM- 5:30 PM 1:30 PM- 5:30 PM

ii. It is the duty of all employees to report for work on time every official working day. If
employees are unable to report to work on time due to unavoidable circumstances they
should attempt to inform their supervisors as quickly as possible the same day. Absence
from duty of more than one half day shall require the submission of a leave request report
form on the first day after returning to duty. Any absence from the duty shall require
reasonable explanation and approval from the supervisor with appointment authority.
4.2.Over time
i. All legally declared public/national holidays are observed by Tumsa TEDO. Staffs
members may be required to work on public holidays when special/emergency situations
demand, but in such an event are compensated by overtime payments or compensatory
leave.
ii. In the case of work done on a public holy day, at the rate of 2.5 multiplied by the
ordinary hourly rate labor proclamation 1156/2011.
iii. Ordinary overtime any time worked by an employee on a weekday (Monday to Friday)
outside of normal working hours. Public holiday overtime any time worked by an
employee on a declared public holiday. In cases where one public holiday coincides
with another public holiday, the employee is entitled to only one payment. Overtime
may only be worked when pressure of work makes it necessary, the employer does
not have another alternative and when it is duly authorized.
iv. In accordance with the Labor Proclamation, the following shall be circumstances, of
which the authorizing employer has assured himself, in which overtime is permissible
there may be an accident, actual or threatening situation, due to force-majeure and the
nature of the work to be undertaken has urgent. The nature of the work to be

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undertaken is continuous and substitution of employees is required for absent

employees; (Labor Proclamation, 1156/2019 Section two, Article 67, Sub-articles 1-
3); .
v. Overtime work must receive the prior approval of the Head of Department or a duly
authorized employee who must establish the necessity and limitation of such
overtime and ensure adequate supervision. Overtime will not be authorized for
periods of less than one hour in any one day. Supervisors or managers shall be
required to report to the human resource department. The report shall be
accompanied by relevant explanatory notes as to the reasons for such overtime. The
Head of Human Resources shall, in turn prepare a summary report of overtime and
present to finance and administration department.
vi. Limitations on the number of hours an employee can work when undertaking work
that is urgent in nature shall not exceed 4 hours in a day or 12 hours in a week.
vii. Overtime payment requests must be approved by the immediate supervisor and head
of department and supported by an approved overtime request.In addition, they shall
be subject to satisfactory completion of the duties in respectto which payment is due.
viii. Payment for overtime work shall be effected on the day fixed for salary payment and
shall be effect based on Labor proclamation 1156/2019 Article 68.
4.3.Leave
i. Contract and regular employees shall be entitled to all leave provisions of the organization.
At the successful completion of the probation period, leave entitlement shall be back-dated
to the date of hire.
ii. All employees wishing to take leave shall submit a written request to their supervisor. The
minimum leave period is one half day. Time off required by the employees of less than one
half day shall be considered by the supervisor with appointment authority at his/her
discretion. All employees shall have a leave record that notes and monitors all types of
leave taken and due.
iii. HR & property administration officer is responsible for ensuring that leave records are
prepared and updated.
iv. All employees are entitled to 16 working days of leave in the first calendar year of service
prorated to their date of hire.
v. They are entitled to one additional leave day for each two calendar years.
vi. Requests for annual leave must submit by the employee to his/her supervisor.

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vii. A leave requests in excess of the number of accrued leave days available for each employee
shall not normally be approved. In addition each employee should indicate his/her
tentative leave schedule by June 1st for each year. Initial leave approvals will be given
based on this tentative leave schedule. Sector Managers are responsible to ensure that leave
is planned, scheduled and taken in as non-disruptive manner as possible and according to
the regulations.
viii. Supervisors shall normally approve or reject leave requests within two working days of
receipt of the request. Supervisors should check with HR & property administration
officer to be sure leave is available, before approving the leave. Occasionally, the
supervisor may ask an employee to adjust the timing of his/her annual leave request in
order to minimize the disruption to their section.
ix. Employees may carry over a maximum of two (2) years accrued annual leave days at the
end of a calendar year to the following calendar year, only if such accrual has been
approved by the finance & administration department chief officer. Any leave postponed in
accordance shall not be postponed for more than two years.
x. Employees or their designated beneficiaries in case of the employee‟s death will receive
financial compensation for any accrued annual leave due to the employee at the time of
separation from the Organization. Reimbursement of accrued annual leave shall only be
considered on separation from the organization and shall not be considered during the
service of employees, except when specially authorized by the CEO/ Finance &
Administration department chief officer.
xi. The organization have the right to pay compensate at his/her leave time in benefit of
organization.
xii. All regular employees shall be entitled to 24 working days of sick leave per year. The
relevant supervisor must authorize all sick leaves. If an employee is sick and unable to
attend work, he/she shall inform his/her immediate supervisor as soon as possible on the
first day of absence.
xiii. If an employee expects to be absent from work for three working days or less, no medical
certificate is necessary provided that the total number of days of uncertified sick leave in
any twelve-month period does not exceed seven working days.
xiv. Any sick leave days taken in excess of three days that are not accounted with medical
certificate from TEDO approved clinic or medical practitioner shall be charged to annual
leave or, if there is an insufficient annual leave balance, then to leave without pay.

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xv. Regular employees who have completed their probation shall be eligible for sick leave in
the course of twelve months as follows:-the first one-month with full pay, the next two-
months with half pay and the next three-months without pay. Such leave shall only be
approved upon hospitalization or producing a medical certificate from TEDO approved
medical organization.
xvi. Sick leave shall not be accrued nor shall any financial compensation in lieu of leave be
considered, including the case of separation.
xvii. All female, regular status employees shall be eligible for time off for medical examination
connected with her pregnancy after prior approval of the supervisor.
xviii. Where possible, job assignment of a pregnant woman shall be reconsidered by the
immediate supervisor if the working conditions are dangerous to her pregnancy as
ascertained by TEDO approved medical practitioner.
xix. All female, regular status employees shall be entitled to Maternity Leave for a period of
120 consecutive days, some of which may be taken before delivery.
xx. The employee‟s salary and benefits during the period of maternity leave shall be paid by
TEDO.
xxi. The employee is prohibited from working for another organization during the period of
maternity leave.
xxii. Should an employee wish to take more than 120 days of maternity leave, she will be
required to submit a leave request for the consideration of her supervisor with appointment
authority. If approved, the excess leave shall be charged to annual leave, and finally, to
leave without pay. Additional leave required for medical reasons will be charged to sick
leave.
xxiii. Maternity leave shall be granted on the submission of a medical certificate of pregnancy,
which also indicates the expected delivery date.
xxiv. Maternity leave shall not be accrued nor shall any financial compensation in lieu of leave
be considered.
xxv. All regular employees shall be entitled to 3 work day‟s paternity leave. This leave shall be
given only on approval by the supervisor with appointment authority. (Labor Proclamation
no 1156/2011 article 81). Paternity leave request shall be supported by valid evidence and
prior approval from the supervisor with appointment authority must be obtained.
xxvi. Employees shall be entitled to 3 (three) work days when concluding marriage or when
her/his spouse or descendants, or ascendants or another relative; whether by affinity or

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consanguinity up to the second degree dies.

xxvii. Employees shall be obliged to immediately inform their supervisor of the need for such
leave and obtain prior approval.
xxviii. All regular and contract employees may be obliged to work on declared official holidays if
this is required by their supervisor. In such cases, they will be compensated for by
alternative day.
xxix. All employees shall be eligible for leave with pay for the time they need to appear before
courts, police stations or Kebeles to meet legal obligations or exercise their civil rights. All
requests for other leave must be supported by genuine paper evidence and must have the
prior authorization of the supervisor.
xxx. All regular employees are required to apply to their supervisor with appointment authority
for permission to take leave without pay. A maximum entitlement of five working days
may be granted to regular employees who have exhausted their annual leave entitlements.
Requests for leave without pay for a period exceeding five working days shall be treated as
exceptional case and be approved only by the finance and administration department chief.
Employees who take leave without pay in excess of authorized duration shall be considered
to have terminated their employment with the organization and shall therefore forfeit any
guarantee of future employment with the organization. Leave without pay for a long-term
educational purpose shall be treated by the CEO as an extraordinary case. Employees
wishing to take a maximum of five (5) working days leave without pay shall submit a
written request at least fifteen (15) days in advance. Employees wishing to take longer
leave without pay, for further education purposes only shall submit a written request at least
three (3) months in advance.
xxxi. Employees may be permitted to remain in service after their 60th birthday. Continuing in
service of individuals above the ages of 60 requires specific approval of the CEO or finance
and administration accordingly.

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5. Staff Performance Appraisal

5.1.Performance evaluation
i. Give the employee feedback on his/her effectiveness on a qualitative and quantitative
basis which were agreed to in advance between the employee and his/her supervisor.
ii. Enable the organization to document an employee‟s performance for current and future
reference.
iii. Enable the organization to possess a consistent basis for considering performance awards,
promotion, or disciplinary action, for an employee.
iv. Enable the employee to understand how the organization perceives his/her performance
and therefore enable the employee to take steps where needed for improvement.
v. Evaluations can also serve to assess the value of TEDO‟s training programs in order to
improve them.
5.1.1. Frequency performance evaluation
Written performance evaluations will be prepared for all employees twice annually. These
evaluations will be conducted each year in December & June. Other occasions for
performance evaluations will include:
a) A week before the end of the probation period;
b) At any time deemed necessary to give guidance to the employee;
c) Before considering any disciplinary action resulting in termination;
d) Before considering any promotion;
e) Before considering any change of employment classification;
5.1.2. Format performance evaluation
i. All performance evaluations will be based on the standard format.
ii. This includes the assessment of general and job-specific areas of performance based on
the employee‟s general job description and the goals established by the employee and
her/his supervisor.
iii. The format includes space for the employee‟s comments and recommendations.

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5.1.3. Procedure performance evaluation

i. A reminder shall be circulated by the HR & property Administration officer along with
the necessary forms and instructions in the month of December and June.
ii. The evaluation for each employee will be prepared by his/her immediate supervisor. Each
evaluation should be reviewed by the concerned supervisor‟s boss prior to submission of
the evaluation to the employee.
iii. The intent of this review is to ensure that the evaluation is balanced, fair and complete.
iv. The supervisor will then discuss the completed and, as appropriate revised, evaluation
with the employee.
v. Upon review of the evaluation, the employee should add his/her comments.
vi. The employee‟s comments may reflect agreement or disagreement with the supervisor‟s
conclusions.
vii. The final evaluation will be signed by the supervisor and by the employee prior to being
submitted to the HR & Property Administration officer.
viii. Tabulate evaluation rating summaries by department for review by the CEO or his
designate.
5.1.4. Recommendations of performance evaluation
i. Promotion to a higher position: The evaluation should show a performance average of
“Exceeds Job Requirements”, or above, and indicate ability by the employee for the
proposed position. Furthermore, there should be a demonstrable reason for the
promotion, such as an existing vacancy, etc.
ii. Excellent performance award: This should be based on an evaluation showing a “Far
exceeds Job Requirements” performance average (“5” rating). A onetime bonus
equivalent to one month‟s basic salary shall be awarded on the approval of the CEO. In
addition the employee shall receive the mandated salary increment based on his/her
grade/step. Note that “Far exceeds Job Requirements” performance awards should not be
frequently given nor expected.
iii. “Exceeds Job Requirements” performance award: This should be based on an evaluation
showing a “Exceeds Job Requirements” performance average (“4” rating) and/or
indication of significant improvement over the evaluation period. A one-time bonus
equivalent to 50% of one month‟s basic salary shall be awarded on the recommendation
of the supervisor with appointment of authority and the approval of the CEO

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iv. . Note that “Exceeds Job Requirements” performance awards should not be frequently
given nor expected.
v. “Meets Job Requirements” performance: An evaluation of “Meets Job Requirements”
(“3” rating) will result in the mandated salary increment based on grade/step.
vi. “Below Job Requirements” performance: This will be based on an evaluation showing
“Below Job Requirements” performance (“2” rating), which will result in no salary
increment. The employee will be given a limited period of time to demonstrate
improvement in specified key performance areas.
vii. “Deficient” performance: This will be based on an evaluation, justified in writing,
showing a generally “Deficient” performance (“1” rating). Disciplinary action will be
taken against the employee, on the approval of the CEO.
viii. Changes in Status: No employee will be moved from probation to regular status, should
the employee receive a less than “Meets Job Requirements” performance evaluation.
Changes in status from probation to regular must be approved by the CEO or finance and
administration chief.
5.2. Promotion
i. Promotion means advancement from a lower position to a higher position and shall entail
an increase in basic salary of at least one step.
ii. Promotion shall be applicable only to regular employees.
iii. Promotion can be made in an existing post, for which there is a vacancy,
iv. Performance records, educational qualification and experience shall be considered for
promotion. This means academic qualification and experience requirements may be
waived at the discretion of the CEO.
v. Preferential consideration shall be given to women employees to promote a satisfactory
gender balance in the organization.
vi. When there are no employees who can qualify for the post, vacancy announcements for
outside applicants may directly be made without advertising the position internally.
vii. When there is no employee to be transferred to fill a vacancy, the next step shall be to
advertise the post for promotion.
viii. The vacancy notice should state the position title, grade, qualifications required, mode
and deadline of application.

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ix. HR & Property Admin Officer shall screen the applications on the basis of the required
qualifications and the selection procedure shall be processed in the same way as that of
recruitment.
x. A letter of promotion shall be written to the employee signed by CEO/Finance & Admin.
Chief Officer and copied to the relevant units.
xi. The HR & Property Admin Officer shall be notified of the promotion and salary and
benefit adjustments shall be given from the effective date of promotion.
5.3. Demotion
i. Demotion may occur as a consequence of disciplinary procedures
ii. Demotion may involve reduction in salary, as in a demotion in grade and step to the
lowest level that is provided for within the classification standard of the post, or may
involve a change in status by a transfer to a different post with lower responsibilities.
iii. Reinstatement to the previous post may be considered after one calendar year, on the
basis of a formal evaluation procedure.
5.4. Transfer and Secondment
i. A transfer is defined as the movement of an employee from one post to another of the
same grade. It may take place within the same organizational unit and with other tumsa
company‟s,
ii. Transfer of employees may be made upon the request of the employee or when the work
necessitates it;
iii. A Secondment is defined as the movement of an employee from one sector to another for
a temporary period defined by the agreement between the two sectors;
iv. During Secondment the employee shall enjoy salary and benefit of his/her duty station
plus per diem and accommodation payments, where necessary;
v. Secondment of employees shall only be made with the authorization of the CEO;
vi. An employee who wishes to get a transfer should apply in writing to her/his line manager.
The line manager may approve and pass over the application to the finance and
administration department.
vii. When a post becomes vacant the finance and administration department shall consult the
releasing and accepting supervisors for their consent and if both agree, a transfer letter
shall be written to the employee copied to the relevant units.
viii. When the decision for a transfer is to be taken due to the work requirement, the letter
shall be signed by the CEO for all positions and by finance and administration for staff.

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6. Remuneration/Payment
6.1. Salary Structure
i. The organization will provide salaries to staff according to the current grade-step scale.
ii. With the exception of Temporary/Part time employees, each employee on
commencement of employment with in the Organization shall be placed at the first step
of the grade applicable;
iii. However, special consideration can be made by the CEO only to place a new employee
at a higher step depending on qualification and experience and its necessities.
iv. Changes in salary as a result of performance evaluations or promotions shall be made
only according to the procedure prescribed in this manual for outstanding performance
verified by a supervisor and approved CEO by writing.
v. For days not worked due to unauthorized leave, or leave without pay. The deduction
shall be computed according to the formula below:
(Monthly salary)
Deduction = _____________________ X No. Non-work days
(22 days)

vi. Note that deductions shall not be made for less than half day.
vii. Employees‟ income tax and other legally mandated salary deductions should be made
from gross salary each month. These deductions shall be made according to government
regulations.
viii. Deductions shall be made from employees‟ salaries to reimburse the organization for any
outstanding advances made to the employee by the organization. Deductions of this type
shall be made according to the terms and schedule of the particular advance.
ix. Deductions may also be made for legal court ordered reasons and/or special if authorized
by the employee (e.g. bank loan repayment).
6.1.1. Salary Advances
i. Employees shall be eligible for salary advance in exceptional cases.
ii. Such requests must be presented in writing to Finance & Admin. Chief Officer for prior
approval.
iii. The amount of the advance shall not exceed the employee‟s monthly salary and shall be
deducted on the same month‟s payment.

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6.1.2. Salary Adjustments

i. Annual increment shall not be awarded to an employee who has not completed at
least six months‟ service with TEDO or who is serving his probationary period at
the date set for increments or for one whose performance in the preceding year was
unsatisfactory;

ii. It shall not be supposed to be a breach of these terms if TEDO for whatever reason
is unable or unwilling to increase staff salaries;
iii. Any changes in an employee‟s remuneration shall be advised to the finance head by
the human resource department via the approved form.

6.1.3. Salary adjustment on promotion

On promotion, an employee‟s salary shall be adjusted to the minimum salary for their
new grade, and if their salary is higher than such minimum, they will receive a salary
adjustment equivalent to 5% of their existing basic salary, provided that no employee
shall receive a salary adjustment that would place his salary beyond the maximum for
the grade into which they are being promoted.

6.1.4. Long Service Awards

An employee who has served TEDO for 5 years shall receive an award comprising of
a certificate of service and a gift that shall be determined by management. Similar
awards shall be granted to employees on attainment of 10, 15, 20, 25 and 30 years of
service.

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7. Employee Benefits
7.1. Package of Benefits
Benefits are incentives/perks provided in cash or in kind to keep employees
motivated. Perks are something offered in addition to wage/salary for doing a
particular job. Benefits are generally good method of tempting new employees and
retaining workers as they are not necessarily related to productivity. They can encourage
staff attachment to the organization. They are forms of value, other than payment, that
are provided to the employee in return for their contribution to the organization.

Where necessary and possible, Tumsa TEDO may, at its sole discretion, provide
various non-wage compensations to its employees in addition to their normal
wages or salaries. Tumsa TEDO intends to provide the benefits to its
managements and employees according organizational structure of TEDO
approved by Board of TEDO on Megabit 01, 2013 E.C.

7.2. Loan Provision

i. An employee shall have worked with TEDO for no less than twelve (12)
months before he/she can be considered for loan approval.
ii. An employee shall apply for the loan using appropriate documentation that
state the amount requested and the reasons for requesting loan
iii. The employee is required to give sufficient guarantee for the return of the
money.
iv. The loan can only grant provided that the employee presents an acceptable
reasons to be supported by his/her colleagues;
v. The loan application shall be submitted and checked by finance head and
approved by finance and administration department.
vi. This loan that shall be granted to the employee shall not exceed the amount
equivalent to two months of his/her net payment and payable within 12
months, provided that the employee can give sufficient guarantee for the return
of the money.
vii. Once loan is approved, a repayment schedule arranged and deducting the
agreed upon amount from the net salary payment of employee.

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7.3. Provident Fund

Provident fund is a benefit scheme which shall apply to employees who have
been employed before June 2003. All employees who shall be employed by
TEDO after July 2003 shall be placed under the social security pension plan of
the Government of Ethiopia.

Provident fund scheme that shall be used by TEDO, on a monthly basis is given
below that approved by board of management office of tumsa endowment for the
development of oromia in organizational structure meskerem 01, 2007. The
provident fund contribution of the parties employees hired before July, 2003 will be:

The TEDO-----------------------------------------------12%
The employee-------------------------------------------10%
Total -----------------------------------------------------22%
The provident fund contribution of the parties‟ employees hired after July 2003
The TEDO-----------------------------------------------1%
The employee-------------------------------------------3%
Total------------------------------------------------------4%
Pension scheme of the TEDO shall falls under ‟Private Organization‟s Pension Scheme
No.705/2003 of the Federal Government of Ethiopia. The permanent and contract that served
the TEDO for at least a month shall be entitled for the pension scheme. As a result, TEDO
shall, on a monthly basis, deduct the following percentages from the gross salary
of the employee and shall match it with the stated contribution. Accordingly, the
contribution of the parties will be;
The TEDO----------------------------------------------11%
The employee-------------------------------------------7%
Total -----------------------------------------------------18%

7.4. Medical Coverage

i. All employees are entitled for the medical benefits according organizational structure
of TEDO approved by Board of TEDO on Megabit 01, 2013 E.C.
ii. Preferred Medicare provider, i.e. specific physicians or hospitals are arranged for purposes
of providing health services at reduced rates under special business arrangements with
employer.
iii. For Illness or health injury occurred related to the nature of job TEDO shall cover
100% medical expenses health care if need arises;

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iv. Employees shall be required to produce accurate and acceptable evidence in order to get
refunds for costs incurred as medical expense.
v. The medical coverage does not include treatment and medical expenses for venereal
diseases, any treatment or medical expenses when an employee causes himself/herself for
physical injury due to intoxication, the medical expense for artificial teeth, cosmetic
surgery, delivery and abortion, tumsa shall cover 85% (according federal health insurance)
of the cost of the lens and frame, for approved purchase of eyeglasses and when it is
ordered by physician.
vi. TEDO shall cover abroad medical treatment for the CEO only. An abroad medical
expense for the CEO includes transport, accommodation and other related
expenses which are approved by the board of directors.
7.5. Death Benefits
Income protection for survivors of the deceased the following are generally
proposed:
i. Burial and funeral expenses benefits- a financial assistance of Birr 7,500 to the
family (father and mother, ) of the deceased.
ii. Survivors or dependents income benefits-When the cause of death is associated
with duties of the employee, the TEDO offers three month's additional salary of the
deceased employee to his/her family. However, this does not refer to insurance
compensation scheme.
7.6. Uniform/Protecting Clothes
Because of the nature of their works employees that are entitled to uniform/protective
cloths shall have the right to receive full work uniforms as required in a year. In
general, the proposed type and number is given in the following table:
Table 1: Employees Proposed Uniform
S/N Type of Employee Type of Uniform Quantity/in year
1 Guard Coat, rain coat, trousers, t-shirts, leather 2/twice
shoes, cape, and neck tie
2 Driver Coat, trouser, t-shirts and leather shoes 2/twice
and neck tie
3 Postman/Messenger Rain coat & leather shoes 2/twice
4 Store clerk Shop coat one in a year
5 Cleaner T-Shirt, trousers, dress, leather Shoes, hair 2/Twice
gear, hand glove

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7.7.Travel and Per Diem Allowance

All employees who are required for work purposes to make overnight trips to areas outside
his regular place of working area shall be entitled to claim Perdiem. Where a night is not
spent, the staff shall be entitled to a “day allowance”. The TEDO shall pay travel allowance
for all employees who are required to make overnight trip for work purposes out of their
assignment place.

An employee who are assigned for trips to areas outside his permanent place of working area
shall fill and submit a travel request form which contains purpose and duration of the trip,
means of transportation, rate of Perdiem etc. to his/her immediate supervisor and department
manager for approval. TEDO shall decide on the means of transportation to be used (vehicle
of its own, public transport, train or air transport). Perdiem rate according organizational
structure of TEDO approved by Board of TEDO on Megabit 01, 2013 E.C.

Note: Perdiem for abroad would be use the rate of federal government regulation
(September 2010) and receipt will carry for contingency amount.

7.8. Cash Indemnity Allowance

Cash indemnity allowance shall be paid to employee who is assigned task deals
with the direct handling of cash. The amount of the allowance is contingent upon
the amount of money handled by the staff. Cashiers get allowances for probable risk of
deficit and to compensate for the high risk of cash loss.
i. The cashier will be paid the allotted cash indemnity allowance with his/her monthly
salary every month.
ii. If and when shortage occurs, the TEDO deducts from his/her salary;
iii. If a cashier is terminated or transferred and if there is no cash shortage, the amount
saved on his/her behalf shall be paid to the cashier less of the required income tax.
iv. If the cashier is not at his/her post and if a replacement is made, the cash allowance for
the period is paid to the person replacing the cashier.
1. For up to Birr 20,000.00-----------------------Birr 200.00
2. Above Birr 20,000.00--------------------------Birr 250.00

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8. Training
Staff development focuses on knowledge and attitudes that may be required in the long-term
achievement of an individual‟s career goals as well as the Organization‟s objectives. By
developing staff from within, the Organization retains employees who understand its vision,
mission and culture and can build up institutional memory. This does not only helps to increase
the TEDO‟s body of expertise, but also creates commitment and loyalty for the success of the
organization. Training opportunities to employees in the form of workshops, seminars and
/work visits. The trainings preferably shall be conducted internally and if it is not possible to
provide the trainings internally, external trainings could be offered.

The main objective of offering training opportunities is to fulfill the needs of TEDO, which is
making the employee more effective. Therefore, training should not be regarded as an
entitlement and shall not guarantee promotion or increment of salary.

TEDO believes that the improvement of skills, knowledge and attitude of its employees
enhances its capability in supporting and implementing the development program. Finance
and admin chief officer shall assume responsibility for planning and monitoring staff
development activities.
8.1. Local training
i. Local training aimed at encouraging, upgrading or broadening the ability of a employee
to perform his or her current task.
ii. TEDO shall make use of NGOs and local training institutions to train its staff.
iii. Exposure visits within the country shall also be considered as part of training and
arrangements can be facilitated by the HR and property admin officer;
iv. The Organization can assist its staff for further education and training through
sponsorship by decision of top management based on the relevance of the field for the
organization
v. All employees are eligible for task-specific training and further education on the basis of
need. Employees and the supervisors are responsible for identification of such needs.
vi. TEDO shall attempt to maintain fair treatment of eligible employees whenever
opportunities are available. Thus whenever there are more candidates than space, the
selection decision shall be made by the CEO in consultation with the responsible
supervisors.

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vii. No training will be given before the probationary period, but in exceptional circumstances
the CEO may authorize that this requirement be ignored, provided that the employee‟s
employment is expected to continue beyond the probationary period and the employee's
performance to date has been satisfactory.
viii. TEDO will pay the entitlements proposed by the staff development committee and
approved by the CEO such as necessary travel costs, tuition fee, accommodation costs
and salary.
ix. Employee who attends a training program shall be required to submit a report to the
finance and administration department within one week from the date of return to duty.
8.2. International training
i. International training shall take the form of attending a course, a workshop, and a seminar
of an exposure visit.
ii. It shall be the responsibility of the finance and administration department to look for
training opportunities abroad and keep a list of appropriate institutions and programs.
iii. As far as possible an international training plan shall be worked out in advance for the
fiscal year.
iv. The Organization can assist its staff for further education and training through
sponsorship by decision of top management based on the relevance of the field for the
organization.
v. All employees attending training program of over six months shall be made to sign an
obligatory service contract of two years and to refund all costs in case of not meeting the
contract.
vi. Trainees shall be required to submit a report to finance and administration department
within one week from the date of return to duty.
vii. TEDO will pay the entitlements proposed by the staff development committee and
approved by the CEO such as necessary travel costs, tuition fee, accommodation costs and
board, 75% of salary up to completed training.
viii. If one of the Committee members is a supervisor of an applicant or has participated in the
application he will not participate in the deliberations and recommendation on that
particular request.
ix. While on international training an employee does not accumulate annual leave.

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x. Awards are made on the understanding that an employee will return to TEDO service for
a period at least twice as long as the training period. Should a employee decide not to
return to TEDO after the training period, all terminal benefit will be forfeited;
xi. Employee who apply for International training must submit a detailed application
supported by their immediate supervisor to the CEO at least 6 months before the expected
starting date of the training,
xii. In order to allow the staff development committee sufficient time to revise the application
and make recommendations to the CEO.
xiii. The requests from a employee must be prepared with as much detailed information as
possible and must include type of training, objective of the training, expected benefit to
TEDO, where will the training be carried out, cost of the training (travel, tuition, books,
and accommodation, miscellaneous).
xiv. Based on the recommendation of the staff development committee the CEO will make the
final decision on each application. His decision is final and binding.
xv. The CEO will communicate the final decision to the concerned employee. The approved
application will be forwarded to the finance and administration department for action.
8.3.Composition of the Staff Development Committee
The Committee will consist of the following members:
a) A finance and administration department chief ----- Chair man
b) A representative from employees---- Member
c) HR & property admin. officer ------ Secretary

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9. Discipline
TEDO believes in a participatory approach to management and as such internal
discipline will be practiced at all times. In this regard, TEDO employees should be
self-directing and striving for the highest standards of performance and behavior in line
with TEDO‟s mission and Objectives.

The image and credibility of TEDO is of utmost importance and every employee must
show the highest standards of professionalism and integrity. Employees are expected
to display a high standard of personal behavior including courtesy to callers and
visitors, confidentiality, respect for supervisors, the management and TEDO‟s
customers.

Employees sometimes may act inappropriately, illegally or fail to perform their duties as
required. This policy aims at ensuring that where disciplinary action is necessary, it is
carried out fairly and reasonably. The main objectives of the discipline policy are to
achieve and maintain high standards of performance or improve weakening
performance, to help discourage indiscipline, and to promote the organizational image

9.1. Disciplinary committee

i. The Disciplinary Committee shall comprise three (3) members appointed by the
CEO for a period of two years renewable

ii. The members of the disciplinary committee that have served at least two years
in TEDO.

iii. The committee shall ensure that there shall be no victimization, discrimination,
or unjust dismissal of employees withdisciplinary charges.

9.2. Disciplinary principles

i. Good reason and clear evidence shall be provided to show that disciplinary
procedures are required;
ii. Actions shall be appropriate to the nature of the offence that has been committed;
iii. Disciplinary action will be demonstrably fair and will be consistent with
procedureslaid down in this manual;
iv. Disciplinary action will be taken when employees are aware of the standards that
are expected of them or the rules which they are required to read and understand

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and the code of conduct;

v. Employees shall have a right of appeal against any disciplinary action that may
be taken;
vi. A full investigation should be carried out before termination of employment.

9.3. Minor Misconduct:

i. Habitual lateness or early departure from place of work without approval of the
supervisor;
ii. Being rude, offensive or threatening to a customer, member of staff or public
withinTEDO premises;
iii. Failure to notify TEDO of one‟s absence from work;
iv. Poor performance standards due to lack of conscientiousness, carelessness or
unreliability;
v. Breaches of TEDO procedures or policies which do not result in financial loss
toTEDO or endanger staff or property;
vi. Misuse of TEDO property;
vii. Failure to follow sickness reporting procedure;
viii. Abetting misconduct;
ix. Failure to obtain approval for annual leave or days off;

Trickery/Deception
i. A Employee who destroys, deletes or alters any organizational level documents,
or who submits a false document;
ii. A employee who submits false identity card or certificate;

iii. A employee who forges the signature of a third person on organizational

documentswith the aim of benefiting him/herself;
iv. A employee who abuses the use of the organizational seal for the benefit
ofhis/herself;
v. A employee provides false information to a third party; the level of severity shall
be decided upon by the disciplinary committee

Theft: A employee who attempts to steal or succeeds in theft of property of

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organization, colleagues or clients. An employee who deliberately misappropriate and

collaborate with any plan to steal.

Bribery: A Employee who abuses his/her authority and takes bribes from any
individual with whom the employees or TEDO has a relationship. An Employee who is
caught in the act of bribery.

Lack of confidentiality: A employee who does not maintain the confidentiality of

Tumsa TEDO and its workings and divulges to a third party highly confidential
information which may harm the development, existence and/or advantage of Tumsa
TEDO;

Inflicting Damage: A Employee, who deliberately and consciously inflicts damage,

causes or attempts to cause damage or collaborates with a third party.

Absenteeism: A Employee who is absent from the place of work without sufficient
reason for five (5) consecutive working days, or a total of ten (10) working days in one
month,or a total of thirty (30) working days in one year.

Abuse of Weapons: A Employee, who has killed, wounded or attempts to kill a person
with a weapon which has been issued to the Employee for the purposes of carrying out
security detail. A Security guard who deliberately or carelessly has his/her weapon
stolen

Other Misconduct: A Employee who fails to comply to the code of conduct, employee
who carries out indecent behavior, sexual harassment or any other sexual offense,
e m p l o y e e who is unfit for duty for reasons other than medical such as
drunkenness, drugs abuse.

9.3.1. Disciplinary procedure of minor misconduct

In the event of indiscipline by an employee, the immediate supervisor or line manager shall
bring the matter to the attention of their respective head of department within forty-eight
(48) hours of the occurrence of the incidence. The Head of Department at their discretion
in line with this policy shall determine whether disciplinary action should be taken
against the staff. Oral warnings may be issued if the situation does not warrant any
disciplinary action.
i. An oral warning pointing out the nature of the offence will be communicated to

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the employee by their line manager or supervisor;

ii. If no improvement is shown, a written warning will be issued and will form part of
the employee's personal record for one year;
iii. If after the written warning, no improvement is shown by the employee, a
second written warning will be issued;
iv. Issuance of a third written warning could result in the employee‟s suspension
and or subsequent dismissal;
v. Provided that an employee completes six (6) months from the date of the second
warning without further misconduct, any warning entered in their employment
record shall be cancelled;
vi. If a employee commits a second minor offense within the warning period of the
first minor offense, it shall be considered equal to the effect of a gross
misconductand all related procedures shall take effect;
vii. The disciplinary committee may at its sole discretion recommend termination of
service or other disciplinary measures as it deems fit;
viii. A written warning for minor offenses shall be valid for the following periods:
Frequency of Written Warning Validity Period
First Written Warning 2 Month
Second Written Warning 6 Months
Third and Final Written Warning Immediate
towards hearing

9.3.2. Letter of explanation/warning

i. The finance and administration department shall issue a letter to the employee who
has committed any disciplinary offense.
ii. The letter shall be copied to the head of human resources and addressed to the
employee.
iii. The letter shall clearly state offenses committed as well as reasons for the
disciplinary action taken.
iv. The employee shall acknowledge receipt of the letter on the duplicate through
his/her signature and return the duplicate letter to the head of human resources
for record keeping.
v. The employee shall acknowledge receipt of the letter within two (2) working
days. If a response is not received from the employee within the given time

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frame, the matter shall be referred to the disciplinary committee and a decision
may be taken without an explanation.

9.3.3. Disciplinary hearing and recommendations

i. The Disciplinary committee shall ensure that a hearing is required based on the
severityof the offense.

ii. The Disciplinary Committee shall provide the concerned employee the
opportunityto give further explanation or information.

iii. The committee shall minute all its proceedings, recommendations and agreed
action plans.

iv. In order to allow for speedy resolution of disciplinary issues, all outstanding
issues must be resolved within 3 working days. Offenses that are very serious
may require more time. Such offenses shall be resolved in no less than seven (7)
working days.

v. The Human Resource section will keep a separate register and file of any
disciplinary issues including copies of all communication and action plans.

vi. The disciplinary committee shall subsequently make a decision on the

appropriate action based on the recommendation, letter of explanation and any
other relevant information.

vii. The decision shall be communicated in writing by the relevant Head of

department and human resources & property Administration department and a
duplicate signed as having been received.
viii. Any submission concerning the disciplinary proceedings against an employee
must be factual and complete.
ix. All decisions must be communicated within 3 working days from date of decision.

x. Any recommended disciplinary action should take into consideration any

previous disciplinary issues which have occurred with a time frame of six
months.

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9.4. Gross misconduct

Prior to deciding whether to submit an employee for a penalty, it is necessary together
with the general policies, to consider the following:

i. The gravity of the offence;

ii. The employee‟s disciplinary record;

iii. The employee‟s general performance record and whether the proposed penaltyis
reasonable in the circumstances.

9.4.1. Disciplinary Penalties for Gross Misconduct

9.4.1.1. Suspension
i. All provision for suspension may be agreed upon in a collective agreement;
The periodof suspension shall not exceed thirty (30) days;
ii. In cases where dismissal or termination of service is under consideration, the
employee may be suspended from duty pending investigations and the final
decision;
iii. While under suspension, the member of staff must not attend his place of work
and must keep off TEDO premises;
iv. During the period of suspension the affected member of staff shall receive half
pay and allowances;
v. However, if in the opinion of the Board of Directors the alleged offence is
likely to involve TEDO in financial loss, the member of staff shall be suspended
but payment of his half pay shall be deferred as penalty;
vi. The investigation shall be carried out within a period not exceeding ninety (90)
days from the effective date of suspension except in the event of investigations
involving law enforcement such as Police;
vii. Provided that, in the event that the member of staff shall be found not guilty of
any misconduct they shall be reinstated without loss of privileges;
viii. Where the offence is proved, an appropriate disciplinary action shall be taken
against the member of staff but where it is not proved; the member of staff will
be eligible toreceive full pay from the date he was suspended;
ix. Where investigations are complete, a member of staff shall be dismissed from
TEDO service without suspension.

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9.4.1.2.Salary deduction
A salary deduction may be effected in the following instances:

i. A reasonable amount for any damage done to, or loss of, any property lawfully in
the possession or custody of the employer occasioned by the willful default of
the employee;
ii. An amount not exceeding one day‟s wages in respect of each working day for
the whole of which the employee, without leave or other lawful cause, absents
himself from the premises of the employer or other place proper and appointed
for the performance of his work;
iii. An amount equal to the amount of any shortage of money arising through the
negligence or dishonesty of the employee whose contract of service provides
specifically for his being entrusted with the receipt, custody and payment of
money;
iv. A reasonable amount for substandard work performance resulting in repeat jobs,
loss of business opportunities by TEDO;
v. The employer‟s supervisor will report the damage to property and decisions on
this matter will be made by head of the department and the head of human resource
& property Admin officer.

9.4.1.3. Summary dismissal

i. Summary dismissal shall take place when TEDO terminates the employment of
an employee without notice or with less notice than that to which the employee
is entitled by any statutory provision or contractual term;
ii. TEDO may dismiss an employee summarily when the employee has, by his or
her conduct indicated that they have fundamentally breached their obligation
arising under the contract of service or when an employee is found guilty of
any gross misconduct detailed this policy.

iii. Examples of breaches of discipline for which summary dismissal shall be applied
are:

a. Dishonesty, embezzlement or fraud either in connection with TEDO business or

third party;
b. Conviction under law in respect of a criminal offence or unfavorable judgment in a
civil action which in either case would bring the individual and, therefore,

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TEDO‟sname into disrepute;

c. Being drunk and disorderly on TEDO premises;
d. Causing or attempting to cause damage to TEDO property either maliciously
or through willful breach or neglect of duty;
e. Wantonly revealing confidential information concerning TEDO‟s business to
outside parties;
f. Physical assault and battery and causing actual bodily injury within TEDO
premises;
g. Gross misuse or overstepping of authorities as laid out in the relevant regulations

9.5. Appeals against disciplinary action

9.5.1. The right to appeal
i. An employee against whom disciplinary action has been taken shall have the
right to appeal against such action;
ii. The employee must be advised of this right at the time when the disciplinary
action is communicated to him;
iii. If an employee at the level of manager and above is not satisfied with the
disciplinary committee's ruling, they may appeal to the Board of Directors by
first submitting the appeal to the Chief Executive Officer;
iv. The Employee shall appeal no later than ninety (90) days from the date of the
disciplinary action;
v. The Chief Executive shall pass the appeal to the Board of Directors no later
than thirty (30) days from the date the Employee has appealed;
vi. The decision of the Board shall be final;
vii. If an Employee is not of management level, he/she shall submit his appeal to the
CEO within ninety (90) days of the date of the disciplinary action. The Chief
Executive Officer‟s decision on the disciplinary matter shall be final.
9.5.2. The appeal procedure
i. An employee who wishes to appeal against disciplinary action shall be required to
doso within 72 hours of receiving the disciplinary action;
ii. All appeals shall be made in writing, shall specify the grounds for such appeal and
be accompanied by a copy of the disciplinary letter, such as, the warning letter,
letterof termination,

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iii. The appeal letter shall be addressed to the Chief Executive Officer and copied to
Human Resource & property Admin officer and the Board of Directors;
iv. After reviewing the appeal, the Chief Executive Officer shall convene an
Appeals Committee which shall be attended by the Supervisor or Head of
department & Human Resource & property Admin officer;
v. The employee shall be required to make written submission to the appeals
committee and shall be allowed to call witnesses from amongst staff;
vi. At the end of the appeals hearing, the Committee shall recommend a decision to
theCEO and ask for their approval or comment;
vii. The final decision shall be communicated to the employee by the Finance &
Admin. Chief Officer in writing after the approval of the CEO is received;
9.6. The Appeals Committee
i. The Appeals Committee is an ad-hoc body, convened within ten days of
notification of the lodging of an appeal.
ii. The Appeals committee including
a) A representative of the CEO
b) A representative of the Staff
c) HR Admin. Property Officer
iii. The CEO is responsible for selecting the members of the Appeals Committee. He
may not select any person who has been substantively involved in the case pending
investigation. e.g. the relevant supervisor;
iv. The Appeals committee selects their own chairman.
v. An employee who wishes to lodge an appeal must present a written statement of
the grounds of appeal to the HR & property Admin. officer within ten working
days of receipt of the penalty;
vi. The Appeals Committee may summon any person or examine any evidence, which
it deems pertinent to the case under discussion;
vii. The employee who has lodged the appeal has the right to see all such information
and to be present at the examination of any person by the Appeals Committee;
viii. The employee has the right to written or verbal presentation to the Appeals
Committee of his or case within twenty working days of the convening of an
Appeals Committee; a written report from the Committee is submitted to the CEO.
ix. The report must represent the majority view of the Appeals Committee.

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x. The report is prepared by the Chairman of the Appeal Committee in the form of a
summary of the background to the appeal, a report of the proceedings of the
Committee and the recommendation of the Committee, which may be either repeal
of the penalty, diminution of the penalty or upholding of the penalty;
xi. The CEO considers the report and may question any of the Committee members or
the employee for clarification, before a final decision is made;
xii. When the CEO has reached a decision, which must occur within ten working days
after the submission of the report, this is communicated to the employee in writing.
xiii. A copy is sent to each member of the Appeals Committee, to the Finance and
Administration Chief Officer, and to the relevant supervisor.
xiv. This decision is binding in all cases except when the employee is contesting
termination of service (including summary dismissal), when a further appeal may
be made to an Appeals Board of directors.

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10. Separation
An Employee shall be separated from TEDO following his/her owns initiation or that of
the employer, or that of the law provided that the separation/termination process is in
line with the provisions of the Labor Proclamation 1156/19 article 34.

10.1. Circumstances of terminated the employment

A. Termination of Contract of Employment by Law

Under certain circumstances, the termination or lay-off may be necessary, or may be
approved by the Law as set out in the Labor Proclamation. Employees who are
terminated or laid off under these circumstances are entitled to payments as laid out in
Article 36 of the Labor proclamation.
B. Expiry of Contract Work
Where the contract of employment is for a definite piece of work, an employee shall be
separated from the service of TEDO upon its expiry or completion of work for which
the contract was created. This is referred to as a definite period or piece work. This
short term appointment shall expire without prior notice at the end of the period
specified in the Letter of Appointment or service contract.
C. Death of Worker
An employee shall have his/her contract of employment, be it fixed or short term,
terminated upon his/her own death. Details on payments of benefits and related severance
are elaborated in Labor Proclamation.
D. Retirement of worker
The contract of employment shall be terminated when the employee has reached the
legal age of retirement of 60 years.
E. Failure in Business Operations
Where TEDO, or the employer, may face circumstances in which its undertakings
cease, be it for bankruptcy or any other cause, an employee shall have his/her contract
of employment terminated. Whenever it becomes necessary to lay off employees due
to such events, the layoff provisions of the Ethiopian Labor Law will takeprecedence.

F. Inability of Employee to Perform

Where the Employee becomes unable to work or perform satisfactorily due to partial
or total permanent incapacitation, the contract of employment shall be terminated. All
Employees whose contract of employment is terminated under these scenarios shall be

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entitled to severance payment if they have worked for a period no less than five years but
they shall not be entitled to compensation payment.
G. Resignation with Notice
i. An employee on fixed permanent appointment may resign from the service of
Tumsa TEDO by giving required prior notice in line with the provisions of the law;
ii. Any Employee, who has completed the sixty (60) day probationary period, may
terminate his/her contract of employment after having given thirty (30) days of
prior notice to his/her employer;
iii. An Employee who wishes to terminate his/her contract of employment while on
probation is required to give seven (7) days advance notice of his/her resignation.
He/she must provide a written notice, stating the reasons for resignation at least on
theday of resignation;
iv. Where an employee who is on a fixed permanent appointment chooses to resign, he
is required to submit a written notification to his/her immediate Supervisor and
Manager stating the following:
a. Reasons for terminating employment
b. Exact date on which termination shall take effect
vii. The Head of Human Resource & property Admin officer may accept a shorter period
of notice;
viii. Utilization of accrued leave days towards the notice period shall be subject to the
approval of the Human Resource & property Admin officer.
H. Resignation Without Notice
An Employee may terminate his/her employment without providing notice to TEDO
under the following circumstances:

i. Where TEDO has committed any act which is consisted to be contrary to a

Employee‟s human dignity, or any acts that are considered punishable by the
Ethiopian Penal code
ii. Where the work environment that an employee is placed is threatening his/her
safety and management has been notified of this situation but failed to act

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iii. Where TEDO fails to provide and full fill the basic „employer obligations‟
provisions that have been laid out in the Labor Proclamation, collective agreements,
work rulesor other relevant laws;
iv. Where an employee chooses to terminate his/her contract of employment without
provision of notice, as supported by the reasons stated above, he/she shall inform
TEDO of the reasons for his/her separation as well as the exact date of the intended
separation;
v. The employee shall be entitled to severance pay if they have worked for a period no
less than five (5) years as well as a compensation package. Calculation details are
provided in Labor Proclamation.
I. Termination of Appointments or Layoffs by TEDO with Written Notice
i. Any termination of appointment by TEDO shall be decided upon by the Chief
Executive Officer and shall be in strict compliance with the provisions of the Labor
Proclamation as well as the provisions set out in this policy and the contract of
employment of the relevant employee;
ii. TEDO shall provide the employee whose contract of employment is terminated under
10.9.1 clause with written document stating the reasons for the termination;
iii. The organization shall lose its right to terminate the contract of employment thirty (30)
days after the issuing the initial grounds for termination.
iv. Where the contract of employment of an employee is terminated by TEDO, the
organization shall provide written notification under the following circumstances:
(1) Factors affecting performance
a) Under certain circumstances, the worker‟s ability to work may be adversely
affecting,thereby affecting the work at hand;
b) The finance and administration department may terminate a contract of
employment if the worker is unable to carry out his obligations under the contract
of employment due to health disability or if the employee is unwilling to relocate
geographically, or change posts.
c) The finance and administration department may also terminate the contract of
employment if the Employee does not agree to take additional training required to
meet any skills gaps that may have developed over the course of his employment.

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(2) Cessation in Activities of the organization

a. The organization may terminate a contract of employment in the event that it
introduces new technology which will noticeably raise the level of productivity,
thereby reducing the need for the existing work force.
b. Finally certain roles may cease to exist at some point throughout the operation of
TEDO, which necessitates a reduction of the number of employees.
J. Termination of Appointments or Layoffs by TEDO without Written Notice
Where the contract of employment of an employee is terminated by TEDO, the
organization is permitted to terminate the contract of employment without written
notification under the following circumstances:
(1) Unsatisfactory performance
a) Unsatisfactory work performance on the job may first be observed by the immediate
Supervisor or the Manager when the employee is unable to complete assigned tasksin a
reasonable period of time. This also includes the delivery of work products which are
consistently below the required quality and potential of the Employee.; (Labor
proclamation 1156/19, article 27)
b) The Chief Executive Officer may, on the recommendation of the general manager of
sector/head of department and the finance and administration department terminate a
confirmed permanent appointment if satisfied in accordance with the performance
management process that the employee's performance have proved unsatisfactory or
that the employee has failedto carry out their duties and obligations satisfactorily.

(2) Conduct Unbecoming and Disciplinary Issues

Poor professional conduct may be observed by the immediate supervisor or manager
when he/she is displaying repeated and unjustified tardiness despite warnings being
issued. An employee may not cause a disruptive work environment through quarrels or
brawls or misappropriate any of TEDO‟s property.
(3) Damage to Physical Property
The Chief Executive Officer (CEO) may, on the recommendation of general manager of
sector/head of department and the finance and administration department terminate a
permanent appointment if he is causing intentional damage to the property of TEDO and
any related businesses.

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(4) Other Unlawful Activities

It is important that Employees abide by work rules and regulations that are set in place to
ensure a harmonious work environment. Circumstances listed below, which may be
observed by the immediate Supervisor and Manager, can lead to termination of contract of
employment without notice:
i. Where the employee attends work intoxicated or may intentionally commit actsin the
place of work which many endanger lives or the Organizational property;
ii. Where the employee refuses to submit him/herself for medical examination as
required by law or by the employer, if it is deemed reasonable
iii. Where the employee removes property from the organization premises without
written and express authorization from the organization
iv. Where the employee refuses to adhere to safety and accident prevention rules,
especially in work environments where they are required
v. Where the employee is absent from work due to sentence of imprisonment
passed against the employee for a period longer than thirty (30) days
vi. Where the employee may carry out acts considered unlawful and wrong in
collective agreement

10.2. Procedure for Communicating Termination Notice

i. Upon terminating a contract of employment, TEDO shall hand the notice of
termination to the Employee;
ii. In the event that the Employee is absent, unable to be located or he/she refuses to
accept the termination notice, the notice shall be affixed on a notice board of the
work place for ten (10) consecutive days;
iii. In the interest of maintaining good will, however, TEDO shall place emphasis on
ensuring that the employee receives the termination notice in due time.
10.3. Termination Notice Period Provisions for Permanent Employees
The notice period for terminating a contract of employment, where the probation period of
Sixty (60) days has been completed, shall be as follows:

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Amount of years of service at TEDO of Employee Amount of notice

period
Period of Service not exceeding one (1) year 1 month
Period of service above one (1) year to nine (9) years 2 months
Period of service of more than nine (9) years 3 months
Completion of probation but contract terminated due to reduction of 2 months
work force

10.4. Termination Notice Period Provisions for Fixed Term or Contract Employees
Where the Employee is employed under a fixed term or contract, the period of notice for
the definite piece of work shall be agreed upon by the said parties in the contract.

Duration of Termination Notice

The right of TEDO to terminate the contract of employment in accordance with these acts
shall lapse thirty (30) working days from the date that reasons for termination were made
clear.

Employee Entitlements
Employees whose contract of employment is terminated under these scenarios shall be
entitled to severance pay, where applicable, as well as compensation.

10.5. Return of TEDO Property

A separation procedure has been established to ensure that all TEDO property, files and
information are returned to the appropriate individuals and also that there has been
appropriate hand over. Upon receipt of the resignation letter, the human resources will
notify all the departments, as well as medical providers and insurance companies among
others and calculate terminal benefits for payment by the finance department (If any).
On leaving TEDO, all original documents and copies belonging to TEDO must be
returned. The employee must also return all computer hardware and software, any written
and training material, keys and any other property belonging to the organization. In
addition, the employee will be required to complete a certificate of clearance with the
departments.

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Employee’s responsibilities
Upon resignation and prior to final departure, the employee will be expected to complete
all current tasks and honor other obligations including payment of all debtsowed to TEDO.

Authority to discharge
Chief Executive Officer shall exercise power of retirement, termination, dismissal or any
other discharge from employment provided that the Chief Executive Officer may delegate
this responsibility to any of department head on specified terms. All discharges shall be in
writing.

Termination Settlement Packages

An employee whose contract of employment is terminated based on the scenarios listed
above shall be entitled to severance pay and compensation if he/she has completed his/her
probation period. All stated payments shall be made no later than seven (7) after the
Employee‟s last day at TEDO.

Severance pay
An employee shall be entitled to severance pay in the event that he/she has completed five
(5) years of service at TEDO. The payment for permanent employees shall be calculated
according (Labor proclamation 1156/19 Article 41). The payment for fixed term or
contract-based employees shall be calculated similarly. In the event that the Employee
passes away before receiving his/her severance pay, the payment shall be paid to his
dependents (Labor proclamation (1156/19 Article 39/2).
Compensation
Where an employee terminates his/her own contract due to adverse conditions at the work
place, he/she shall receive, in addition to severance payment, a compensation equivalent
to sixty (60) times the average daily wage of the Employee‟s last week ofservice.

Where an employee‟s contract of employment has been terminated in a manner deemed

„unlawful‟ (all provision of the Labor Proclamation shall apply), the permanent employee
shall be entitled to the following compensation payment, in addition to severance
payment, if applicable:

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i. One hundred eighty (180) times the average daily wage during the last week of
service;
ii. A sum equivalent to the required notice period, which is contingent upon the years
of service;
iii. The payment for a fixed term or contract-based employees shall be calculated as
follows:
a. Sum equal to wages the Employee would have obtained if the contract
ofemployment had lasted up to its date of expiry or completion;
b. The amount above shall not exceed one hundred eighty (180) times the
averagedaily wage of the last week of service.
11. Effective Date
This manual should be valid starting from the date of approval by the Board of Directors of
tumsa endowment and will remain effective for three years with-out revision. Any urgent change
to this policy should be approved separately by the board that will be annexed to the manual until
the date of the revision.

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