- Cassation File Number: 188371.
- Date: Tahsas 27, 2013 E.C..
- Parties:
- Applicant: Ato Girmay Aregawe.
- Respondent: Dedebit Credit and Saving Institution (DECSI) – Mekelle Branch.
Summary of Facts:
The Applicant applied for a “Branch Director” position and scored the highest in the recruitment exams. However, the Respondent hired the second-place candidate, asserting that the Applicant was “over-qualified” for the role. The Applicant sued, seeking a court order to annul the other appointment and compel the Respondent to hire him. The regional courts were split, with the regional cassation division eventually ruling that no employment contract had ever been formed.
Legal Rule (Ratio Decidendi):
A contract of employment is formed only when there is a clear “Offer” and an “Acceptance” (Civil Code Arts. 1681-1695). A job advertisement is merely a “declaration of intention” or an invitation for candidates to make offers. Scoring first in a recruitment process does not create a binding employment relationship unless the employer unequivocally accepts the candidate’s offer to work. Under the principle of freedom of contract, a court cannot generally compel an employer to enter into a contract with a specific individual.
Reasoning:
The Court reasoned that the Applicant’s participation in the exam constituted an “Offer” to the Respondent. The Respondent’s choice not to hire him due to being “over-qualified” was a valid exercise of its freedom to choose with whom to contract. Since no “Acceptance” occurred, no employment relationship was established under either the Civil Code or the Labour Proclamation. The Court further found no violation of constitutional equality (Art. 25), as the rejection was based on a non-discriminatory administrative reason (qualifications) rather than protected grounds like race or religion.
- Decision: Upheld (The decision of the Tigray Regional Cassation Division is affirmed).
- Cited Provisions of Law: Civil Code Art. 1681-1695, 1687, 1688(1), 2512; Labour Proclamation No. 377/1996 Art. 2(3), 3(1), 4-5; FDRE Constitution Art. 25, 37.