Feb
In the fast-paced world of modern business, annual leave is often viewed as a luxury or a negotiable perk. However, under Ethiopian law, it is a fundamental right. Understanding the specifics of Labor Proclamation No. 1156/2019 is essential for both employers seeking compliance and employees looking to protect their well-being.
The Foundation: More Than Just a Vacation
Annual leave is legally designed for rest and mental recuperation. One of the most critical aspects of the current proclamation is that this right is non-negotiable. While it may be tempting for employees to “sell” their leave days for extra cash, the law strictly prohibits waiving annual leave in exchange for payment while the employment relationship is ongoing. The only exception occurs upon the termination of a contract, where unused leave must be compensated financially.
Doing the Math: The “16 + 1” Rule
Many are still operating under outdated regulations, but the 2019 Proclamation raised the bar. The current calculation for annual leave is as follows:
- The Starting Point: A worker is entitled to 16 working days of paid annual leave upon completing their first year of service.
- The Seniority Bonus: For every two additional years of service, the employee earns one extra day of leave.
For example, a staff member in their fifth year of service would be entitled to 18 working days of leave. For those who leave a position before completing a full year, the law provides for leave or payment proportional to their length of service (pro-rata).
Management and Flexibility
While the employee has the right to leave, the employer has the right to manage the schedule. The law requires a balance: the employer sets the leave schedule but must do so by considering the interest of the worker alongside the operational needs of the business.
Flexibility is also built into the law. Leave can be split into two parts if both parties agree, and in cases of unforeseen circumstances, it can be postponed. However, there is a strict limit—leave cannot be delayed for more than two years. It must be taken to fulfill its legal and health purpose.
The “Hidden” Protections
Perhaps the most overlooked protection is what happens when health interferes with rest. If an employee falls seriously ill and requires inpatient treatment while on annual leave, the annual leave is officially suspended. The worker transitions to sick leave status, and their annual leave balance is preserved for a later date. Furthermore, if an employer must recall a worker from leave for an emergency, they are legally obligated to cover all travel expenses and provide a per-diem.
Conclusion: Leadership Through Knowledge
At the end of the day, a well-rested team is a productive team. Understanding the nuances of Proclamation 1156/2019 isn’t just about checking a legal box—it’s about fostering a culture of fairness and professional respect. Whether you are leading a team or navigating your own career, remember that your right to rest is protected by law. Don’t leave your benefits to chance; master the rules today to ensure a smoother, more compliant workplace tomorrow.
