After a recent downturn, Ethiopia’s economy is on the rise once again, with an impressive 6.6% growth expected this year. The country’s more than 54.47 million workers are employed primarily in agriculture, but the proportions working in industry and services continue to rise.

As more and more employers have entered the Ethiopian market, competition for these workers has increased and made it more important than ever for them to connect with the right people for their specific needs. Workers also want to make sure that they’re choosing their jobs wisely. They want to find out if they’ll enjoy their roles and their teams, and that their employers will deliver on their recruitment period promises.

Probation periods can help both sides find some certainty before they make long-term commitments. This guide will explain how a probation period in Ethiopia is used to the advantage of both employees and employers.

Definition of a Probation Period in Ethiopia

A probation period, also known as a trial period, is an initial time when employers and employees can test out their new employment relationships. They are also times when protections for both sides are relaxed, giving both sides more flexibility in their decisions and the chance to terminate their contracts if desired.

For employers, probation periods act as additional checks and balances for their recruitment processes. While employees may make claims about their skills and abilities during recruitment, probation periods allow employers to see them in action and assess these skills for themselves. Probation is also a time when employers can work closely with new employees to quickly bring them up to full productivity. Finally, employers check not only the abilities of their new workers, but also their fit with the company culture and, specifically, with the supervisors and colleagues they’ll be working with going forward.

While employers are making their assessments, newly hired workers also take this initial time to feel out their jobs. They, too, assess how well they can collaborate with their coworkers and fit into the structures of their organizations. They decide if they will enjoy their jobs and be able to perform them effectively. In addition, they use their probation periods to check whether the working conditions and benefits they were promised are provided by their employers.

In Ethiopia, probation periods start on the first day that employees start working. They either carry on to the end of their stated durations or are terminated by either party at any time. If neither party chooses to terminate the relationship, the probation period will be considered a success, and the worker will be accepted as a full employee. 

Lengths of Probationary Periods in Ethiopia

Probationary periods are not required in Ethiopia, but since they’re advantageous to employers, they tend to be used across most industries. According to Ethiopian Labor Proclamation 1156/2019, probation periods can’t last longer than 60 days in Ethiopia. They also cannot be extended, nor can an employee be made to undergo probation again if they’ve already performed the same job for the same employer. However, if they change their roles significantly within the same organization, they could be asked to go on probation again.

There is no specific mandate for probationary periods for workers on fixed-term contracts. Therefore, it can be assumed that these, too, cannot exceed 60 days.

Legal Considerations of Probation Periods in Ethiopia

Numerous legal tools protect the rights of workers and employers in Ethiopia. These include the Constitution of the Federal Democratic Republic of Ethiopia 1995 and the Labor Proclamation No. 1156/2019, which define and govern the use of probationary periods. 

Pay and Working Conditions

The minimum wages in Ethiopia haven’t been updated since 1 January 2011. The minimum a worker can be paid depends on their type of employment and skill level, which is closely controlled in this country. Minimum wages range from 420 ETB (Ethiopian birr) per month for laborers and guards (approximately 3 USD) to 1,499 ETB per month for professionals (approximately 11 USD). However, these wages are quite out of date and don’t accurately reflect the cost of hiring Ethiopian workers. Regardless, workers on probation cannot be paid less than the minimum wage for their level and position.

Ethiopians work a 48-hour workweek, normally eight hours a day and six days a week. They can work overtime, but it’s limited to four hours a day and 12 hours a week. They must be paid 150% of their normal wages for overtime hours during the day, and 175% for hours performed at night (after 10:00 pm). Probationary employees are also protected by these limits.

Termination and Notice

During or at the end of their 60-day probation periods, both employers and their employees have the right to terminate their employment agreements at any time. Workers don’t need to provide notice of termination. Employers aren’t required to justify their dismissals, provide notice, or pay severance or other compensation to probationary workers.

Once probation periods end, however, conditions change dramatically. Workers can resign at any time by providing their employers with 30 days’ notice. Except in cases of gross misconduct, employers need to provide their workers with equal or greater periods of notice. Employees who have finished probation but have worked less than a year are entitled to 30 days’ notice. For service from one to nine years, they must receive two months’ notice, and for service of more than nine years, they must be given three months’ notice. Workers must normally also be paid severance equal to 30 days’ wages for their first year of service and ten more days’ wages for each additional year they have served their employers.

Vacation / Holidays

Ethiopians usually celebrate 13 public holidays per year on days of national and religious (Christian and Islamic) significance. These are considered fully paid days off from work. However, some of these days are based on the lunar calendar, and if they overlap, only one holiday is given. When workers are required to work on public holidays, they need to be paid at the premium rate of 200% of their normal wages. These rules also apply to workers on probation if holidays occur during these periods.

Once they have completed their first year of service to their employers, workers are entitled to 16 working days of annual leave, which must be taken consecutively. After the first year, they receive an additional allowance of one more day of leave per year for every two years of service. So, for their first and second years, they receive 16 days each; for their third and fourth years, they receive 17 days of annual leave each; and after their fifth year of service, they receive 18 days of leave.

Benefits of Probation Periods in Ethiopia

Probation periods can be beneficial for both employers and employees in new working relationships. The benefits that can be obtained from these periods include:

  • For Employees

The chance to test out new jobs and see if their skills and personalities match well with their roles and new teams.

The option to resign if a position is not working well and get back onto the labor market quickly.

  • For Employers

The opportunity to confirm the claims workers make about their skills and abilities during the recruitment and interview processes.

A chance to terminate workers who don’t have the skills they claimed or the ability to fit in well with their colleagues.

The ability to refine their recruitment and hiring processes based on the ratio of recruits that pass probation.

Conclusion

A probation period in Ethiopia provides both the employer and the employee with the chance to do a trial run with a new employment relationship to figure out if it will be successful or not. These short periods are limited to 60 days, within which both parties have the choice to terminate their contracts if they don’t expect things to go well.

While these terminations can occur at any time during probation periods, workers are otherwise protected by the same regulations that apply to their fully employed counterparts.

Frequently Asked Questions

Yes. Because they provide employers with the opportunity to dismiss workers easily and replace them quickly, they are popular in most industries. 

Unlike in other countries, there are no differences in the duration of probation periods depending on employees’ positions. Probation can last a maximum of 60 days in Ethiopia, though a few employers will choose to use only 30-day periods to make their assessments.

Yes. Their employers are under no obligation to provide them with justifications for their dismissals. However, it’s best practice to explain to employees why they didn’t pass their probation so they can improve in the future.