Summary of Ethiopia’s Overseas Employment Proclamation No. 1389/2025

This Proclamation establishes a comprehensive new legal framework to regulate the overseas employment of Ethiopian citizens. It aims to protect the rights, safety, and dignity of workers, enhance the country’s competitiveness in the global labor market, and combat illegal recruitment and human trafficking. It replaces the previous Overseas Employment Proclamation No. 923/2016 and its amendment.

Key Takeaways

• Strong government control and oversight
• Mandatory digital tracking system
• Strict licensing of recruitment agencies
• Focus on worker safety, rights, and skills
• Limits on unregulated migration and exploitation

1. General Provisions and Scope:

• Purpose: 

The proclamation seeks to facilitate legal overseas employment while ensuring workers are protected, their rights are upheld, and their employment is based on transparent and technology-supported systems.

• Application: 

It applies to all overseas employment relations for Ethiopians, whether facilitated by a governmental body, a licensed private agency, or through direct employment.

• Key words: 

Agency (licensed non-governmental recruiter), Employer, Worker (skilled, semi-skilled, or experience-based), Direct Employment, License, Labor Attach, Employment Contract, Skills Training, Agency Associations, Worker Recruitment, Worker Deployment, Certified & Skilled Workers, Competency Certification, Pre-Departure Training, Labor Market Competitiveness, Labor Market Information System (LMIS), Digital Employment Database, Worker Registration.

2. Regulatory and Administrative Framework:

• Ministry of Labor and Skills: The Ministry is the central authority responsible for leading, coordinating, regulating, and supervising all overseas employment services. It is responsible for:
• Regulating and supervising overseas employment
• Licensing and controlling agencies
• Coordinating recruitment and deployment
• Monitoring worker protection and compliance

• Labor Market Information System (LMIS): A centralized digital system is established to manage all data related to overseas employment, from worker registration and contracts to agency details and complaints. All services must pass through this system.
• One-Stop Service Centers: These centers are set up for citizens to register for overseas employment and receive related services.
• Ethiopian Overseas Employment Board: A board is established to coordinate relevant stakeholders and ensure the effective implementation of the Proclamation and the protection of workers’ rights.
• Agency Associations and Federation: Agencies can form associations and a federation, which will represent them, conduct commission negotiations (with Ministry approval), and report on sector activities.

3. Employment Service Delivery and Worker Requirements

• Recruitment and Placement: Recruitment is centralized through the LMIS. The Ministry will place trained and certified workers with agencies based on job orders. The Ministry can also facilitate recruitment via Government-to-Government agreements.
• Direct Employment: Generally prohibited. The Ministry may permit direct employment for staff of Ethiopian missions, international organizations, or jobs secured through personal effort, subject to strict verification and approval conditions.
• Worker Categories & Eligibility:
  • Skilled Worker: Requires formal education, specialized knowledge, and an occupational competency certificate.
  • Semi-Skilled Worker: Meets educational and skill requirements partially, and holds a competency certificate.
  • Experience-Based Worker: Possesses skills through experience and holds a competency certificate for manual/routine jobs.
• General Requirements: All workers must be able to read and understand their contract, undergo a medical examination at approved health facilities, and possess a valid occupational competency certificate.
• Expense Coverage: The employer must cover costs for visas, transportation, medical exams, work and residence permits, and insurance. The worker is responsible for costs like passport fees, criminal record clearance, and training

4. Regulation of Private Employment Agencies

• Licensing: Any person or entity wishing to operate as an agency must obtain a license from the Ministry. Licenses are categorized into five levels based on capital and capacity to deploy workers.
• Eligibility: Applicants must be Ethiopian citizens (with specific allowances for diaspora and foreign nationals in certain sectors) and meet minimum capital requirements (ranging from 5 million to 20 million Birr).
• License Validity and Renewal: Licenses are valid for one year and must be renewed annually. Failure to deploy workers (e.g., 25 workers within 30 days of a warning) can lead to revocation.
• Prohibitions: Agencies cannot transfer their license, engage in more than one agency, or operate in travel agencies.

5. Terms and Conditions of Work

• Model Contract: The Ministry is responsible for creating a model employment contract that outlines fair wages, working hours, leave, transportation, insurance, and dispute resolution mechanisms.
• Insurance and Guarantees:
  • Agency Guarantee Fund: Agencies must deposit a significant financial guarantee in a bank account (from $50,000 to $250,000 USD depending on the level) to protect workers’ rights.
  • Foreign Employers’ Guarantee Fund: Foreign employers must deposit $100 USD per worker to secure monetary claims.
  • Insurance: The employer must provide life and disability insurance for each worker.
• Repatriation: Agencies are obligated to cover the costs and arrange for the repatriation of workers and their belongings upon contract termination, or in the case of injury or death.

6. Offences, Penalties, and Complaint Mechanisms

• Agency Offences and Penalties: The Proclamation lists a wide range of violations and corresponding administrative penalties:
  • Written Warning: For minor infractions like obstructing inspectors.
  • License Suspension (3, 6, or 12 months): For more serious violations like deploying workers without proper certification, failing to report, or not providing temporary food/shelter.
  • License Revocation: For severe offences including fraud, deploying workers under 18, receiving fees from workers (commission), assigning workers to unauthorized employers, or engaging in activities that harm the country’s image.
• Complaint and Appeal Process:
  • Complaint Submission: Any victim worker or their representative can submit a complaint to the Ministry or the appropriate regional authority.
  • Expedited Process: The Ministry must decide on complaints within 15 working days.
  • Appeal: A party aggrieved by the Ministry’s decision can appeal to the Federal High Court or a competent regional court within 15 working days.
• Worker Offences: Workers can be suspended from overseas employment for one, two, or permanently for offences like deserting their job, providing false information, or committing crimes.

7. Miscellaneous and Final Provisions

Effective Date: The Proclamation came into force on August 14, 2025.o. 1389/2025

Awareness and Support: The Ministry is mandated to provide pre-departure training, create public awareness, and facilitate financial and entrepreneurial support for returning workers.

Repeal: This Proclamation repeals the previous Overseas Employment Proclamation No. 923/2016 and its amendment.

Transitory Provisions: Agencies previously licensed under the old law have a three-month window to obtain a new license under this Proclamation.