Law & Society

Do want to know when you can validly terminate a contract of employment as per the Ethiopian Labor Law? If so here are the main points.

In Ethiopia the employment relationship between an employer and an employee is governed by The Ethiopian Labor Proclamation 377/2003. According to this proclamation the contract of employment may be terminated by the following different reasons.
1. By the initiation of the employer or worker,
2. In accordance with the provisions of the law,
3. By the collective agreement or by the agreement of the two parties.
This article is basically concerned on discussing the basic grounds of termination under Ethiopian Labor Proclamation. According to the Ethiopian Labor Proclamation, a contract of employment may be the terminated on grounds connected with the worker’s conduct, skill, objective circumstances arising out of his work or the organizational or operational requirements of the undertaking.
Now we will observe the legal grounds that give the employer the opportunity to terminate an employment contract.

A. Termination of the contract of employment with out notice
A contract of employment shall be terminated without notice on the following grounds only. If any of the following things happen the employer is entitled to terminate the employment of a worker without being required to give the employee a notice period(i.e. from one to three months period based on the workers service period).
1. Repeated and unjustified tardiness despite warming to that effect,
2. Absence from the work without good cause for a period of five consecutive working days or ten working days in any period of one month or 30 working days in a year,
3. Deceitful or fraudulent conduct in carrying out his duties having regard to the gracing of the case,
4. Misappropriation of property or fund of the employer,
5. Producing a work output below the qualities and quantities agreed which, despite the potential of the worker is persistently,
6. Responsibility for brawls or quarrels at the work place,
7. Conviction for an offense where such conviction renders him incapable for the post which he holds,
8. Responsibility for causing damage intentionally or through gross negligence to any property of the employer or to another property which is directly connected with the work of the undertaking;
9. Intentionally commit in the place of work any act which is endangers life and property
10. Take away property from the work place with out the express authorization of the employer
11. Report for work in a state of intoxication
12. Except for HIV/AIDS/ test, refuse to submit himself for medical examination when required by law or by the employer for good causes.
13. Refuse to observe safety and accident prevention rules and to take the necessary safety precautions
14. Commission of other offenses stipulated in a collective agreement as grounds for terminating a contract of employment without notice.
15. Absence from work due to a sentence of imprisonment passed against the worker for more than 30 days;

Where an employer terminates a contract of employment because of the above reasons, he shall give written notice specifying the reasons for and the date of termination with ion 30 days

B. Termination Of Contract Of Employment With Notice
The following are sufficient grounds for the termination of a contract of employment with notice.
1. The worker’s manifested loss of capacity to perform the work to which he has been assigned or his lack of skill to continue his work,
2. If the worker, for reasons of health or disability, permanently, is unable to carry out his obligations under the contract of employment,
3. The worker’s unwillingness to move to a locality to which the undertaking moves,
4. When the post of the worker is canceled for good cause and the worker cannot be transferred to another post.
The notice of termination by the employer shall be handed to the worker in person. Where it is not possible to find the worker or he refuses to receive the notice, it shall be affixed on the notice board in the work place of the worker for ten consecutive days.

Period of Notice
Period of notice means the number of days the employer should give for the worker before the termination of the contract. This Period of notice ranges from one to three months based on the period of service of the worker.
1. One month in the case of a worker who has completed his probation and has a period of service not exceeding one year,
2. Two months in the case of a worker who has a period of service a above one year to nine years,
3. Three months in the case of a worker who has a period of service of more than nine years,
4. To months in the case of a worker who completed his probation and whose contract of employment is terminated due to reduction of work force.

C. Reduction of workers
The other ground of termination of an employment contract in Ethiopia is Reduction of Workers. Reduction of workers can be made when the following requirements are fulfilled.
1. Fall in demand for the products or services of the employment resulting in the reduction of the volume of the work and profit of the undertaking & there by resulting in the necessity of the reduction of the work force,
2. A decision to alter work methods or introduce new technology with a view to raise productivity resulting in the reduction of the work force,
3. Any event which entails direct and permanent cessation of the worker’s activities in part or in whole resulting in the necessity of a reduction of the work force.
If the above grounds occur,
1. A number of workers representing at least ten percent of the number of workers employed or,
2. In the case of an undertaking where the number of employees is 20-50 a reduction of workers affecting at least 5 employees over a continuous period of not less than 10 days can be made.
The employer in consultation with the trade union or its representative shall give priority of being staying in job, for those workers having higher rate of productivity and best skills.

In the case of equal skill and rate of productivity, the workers to be affected first by the reduction shall be in the following order.
1. Those having the shortest term of service in the undertaking,
2. Those who have fewer dependants,
3. Those who are disabled due to an employment related injury in undertaking,
4. Workers’ representatives,
5. Expectant mothers,

D. Termination by the worker
The other cause for terminating the contract of employment is termination by the worker himself. With out considering his period of service, any worker who has completed his probation period may be giving 30 days prior notice to the employer terminate his contract of employment.

A contract by definition is an agreement between two or more parties, which if it contains the elements of a valid legal agreement, is enforceable by law or a binding arbitration. A contract is also an exchange of promises with specific legal remedies for breach. A breach of contract can include compensatory remedy if one of the parties within the contract defaults.

An oral agreement between two parties can constitute a legal binding contract as much as a written. The limitation is that with a written agreement, parties have material evidence to prove the terms.

Contract law is classified as a general law of obligations. The contract defines the obligations between two or more parties.

The eight key requirements for the creation of a contract are:

* Agreement (Offer and Acceptance)
* Capacity to contract
* Consideration
* Legal purpose
* Legality of form
* Intention to create legal relations
* Consent to contract
* Vitiating factors: Mistates, undue influence, misrepresentation, duress

A contract is also an offer and acceptance. One party makes an offer and the other accepts. This is also called a concurrence of wills or ad idem. There are also unilateral contracts whereupon obligations are imposed upon one party upon acceptance by performance of a condition. With this type of contract, offer and acceptance, it does not always need to be expressed orally or in writing. It can also be considered an implied contract. An implied contract can take two forms. The first, a contract which is implied in fact. This means, the circumstances imply that parties have reached an agreement even thought they have not done so expressly. An example would be if a person goes to a doctor for a checkup and agrees to pay a fair price for the service. If that person refuses to pay, he or she has breached a contract implied in fact. If one refuses to pay after being examined, they have breached a contract implied in fact.
A contract that is implied in law is also called a quasi-contract due to it not truly being a contract but rather a means for the courts to remedy situations in which one party would be unjustly enriched we he or she not required to compensate the other.

Other contracts that are not written include verbal exchanges, which again can be either implied in fact or implied in law and are legally binding. Some jurisdictions have rules or statues that may render valid oral contracts unenforceable. This is typically the case in oral contracts involving large amounts of money or real estate. Such oral contracts violate the common law statue of frauds which state statues require certain contracts to be in writing. For example, if a person agrees to buy a car for $9,000 in a jurisdiction which requires a contract for the sale of goods over US $500 to be in writing to be enforceable.

Contracts that do not meet the requirements of common law or statutory Statutes of frauds are unenforceable but are not necessarily thereby void.

Getting a contract in writing, even though it may qualify as a verbal agreement, can reinforce both parties stance and help them stay out of courts in cases of disagreements. Most contracts should cover a few key points that include: if a contract for the purchase or sale of goods, terms involved such as time and place of delivery, time and method of payment, product description and unit price. Contracts should also outline clearly who is doing what and when, what parties are not going to do, how much is being charged and when payment is due.

ALWAYS USE A LICENSED CONTRACTOR

Check with your local consumer affairs office to find out if the proposed contractor is licensed, and if there are any pending complaints against the contractor. Never hire and unlicensed contractor, and make sure they have proof of insurance.

GET REFERENCES

Ask for previous customers of the contractor, and contact them. They may be shills, but if a contractor cannot even provide three references, avoid him. Check for references, after you check for licenses and complaints with the consumer affairs office.

NEVER PAY CASH

You must be able to document everything you paid the contractor, both for tax purposes, and in the event of a dispute. It is also a good idea to withhold a "retainage" of at least 5% of the contract price, to ensure that the work gets done.

KNOW YOUR CONTRACT RIGHTS

The rights of consumers varies from state to state. You need to know what your rights are with respect to dealing with home improvement contracts, and these contracts should always be in writing. In the contract, specify whose obligation it is to obtain permits, variances, and other construction documents. Also, you want to include a delay penalty, a retainage amount, and that in the event subcontractors are being used, that they provide you with lien waivers. (A statement that they have been paid by the contractor and will not lien the job). This stuff is only the beginning. You need competent counsel to advise you--before you sign.

AVOID FINANCING THE IMPROVEMENT THROUGH THE CONTRACTOR

This might not even be legal in your state for the contractor to offer. Usually you will do better through a bank or a credit union.