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Ethiopia

How to Hire Workers in Ethiopia | Employer of Record (EOR) in Ethiopia

Looking to expand your business into Ethiopia? Our Employer of Record (EOR) services ensure a seamless entry into this growing market. We handle all aspects of local employment, from navigating complex labor laws to managing payroll and benefits, allowing you to focus on your core business. With our tailored solutions, you can confidently establish your presence in Ethiopia and grow your business without worrying about compliance or legal obstacles.

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Ethiopia, known for its rich history, diverse culture, and stunning landscapes, offers great opportunities for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Ethiopia, offering comprehensive solutions for building your contingent workforce.

With a population of over 118 million people, Ethiopia boasts a large and diverse workforce. From the historic sites of Lalibela to the natural beauty of the Simien Mountains, the country offers a unique blend of culture and natural wonders.

When expanding your business into Ethiopia, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is committed to meeting your needs.

By partnering with TCWGlobal, you can confidently expand your business into Ethiopia, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.
Fixed-Term Contracts

Fixed-term contracts are permitted in Ethiopia for a minimum of one year and a maximum of two years. Fixed-term contracts may be renewed an unlimited number of times. However, after the expiration of the probationary period, a fixed-term contract has the same termination requirements as that of a permanent contract. Also, if the work becomes permanent in nature or does not fulfill the characteristics of a fixed-term agreement, it may be deemed permanent.

Probationary Periods

Probationary periods are permitted in Ethiopia in both fixed-term and permanent contracts for a maximum of 45 days. During the probationary period, no reason or notice is required to terminate the arrangement.

Holidays

Workers in Ethiopia recognize between 12 and 13 paid public holidays depending upon the year. Work performed on a public holiday is payable at 200%.

Vacation

After one year of service, Workers are entitled to 14 days of paid annual leave. The annual leave allotment increases by one day for each additional year of service. The annual leave accrues monthly and rolls over year to year if unused. It should be used in one lump sum or, at the Worker's option, in two parts. Any accrued but unused leave is payable at the end of the engagement.

Sick Leave

Workers are entitled to six months of sick leave either consecutively or cumulatively over the course of 12 months beginning on the first day of illness. The sick leave is payable as follows: first month - 100% of wages, second month - 50% of wages, third month onwards - no wages.

Working Hours

A normal workweek should not exceed 8 hours per day and 48 hours per week. Workers are entitled to 24 consecutive hours of rest each week, which should be granted on a Sunday. Work performed during the night (10 p.m. to 6 a.m.) is payable at 150%.

Overtime

Work exceeding 8 hours per day or 48 hours per week is considered overtime. Overtime performed on normal days is payable at 125% whereas overtime performed on a rest day is payable at 200%.

Mandatory Bonuses

There are no mandatory bonuses in Ethiopia, but some organizations elect to offer a 13th month salary.

Termination

Except in limited situations such as misconduct, termination requires notice, which is based on the length of the Worker's engagement: 0 - 1 year of service - 1 month's notice; 1 - 9 years of service - 2 months' notice; 9+ years of service - 3 months' notice. In addition, Workers may be entitled to severance equal to a pro-rated portion of one month of pay for less than one year of service, one month of pay for the first year of service, and one month of pay plus 1/3 of one month of pay per additional year of service. 

Resignation

Workers are required to provide 30 days' written notice of resignation (unless there is a 'valid ground' for ending the employment relationship based upon the employer's conduct). If they do not provide such notice, they may be liable for compensation to the employer not exceeding 30 days of wages.

Unique Country Nuances

Pregnant Workers are afforded additional rights including a prohibition on night work and overtime work as well as protection from termination.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.