Cassation File No. 202700

Date of Decision: Hidar 27, 2014 E.C.

Litigating Parties: Applicant: Ato Hailay G/Tsadiq; Respondent: Ethiopian Airlines Group

Brief Summary of the Case:

The Applicant was removed from a management position at the Ethiopian Airports Enterprise and assigned to work as a consultant at the Ministry of Transport. The Applicant filed a claim stating, “Since the Respondent (Airlines) was paying my salary, I should be paid the bonus given during this period.”

Rule: Bonus payment is made when it is confirmed that the employee or manager has provided service to the employer organization and their performance within the organization has been assessed.

Reasoning:

It has been confirmed that the Applicant, effective since Ginbot 2008 E.C., was relieved of managerial responsibility from the Respondent organization and was assigned to a ministry office. The fact that the Respondent was merely ordered by a higher body to pay the salary does not establish an employment relationship between the Applicant and the Respondent. The Applicant does not have the right to claim a bonus earned during the period they did not provide service to the organization.

Ruling:

The lower court’s decision, which rejected the Applicant’s claim for bonus and other benefits, is upheld.

Regarding bonus (gursha) payment under Ethiopian Labor and Employment Law, detailed information obtained from five cassation files presented is as follows:

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