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 … Read more

Cassation File No. 128147

Date of Decision: March 12, 2009 E.C. Litigating Parties: Applicant: Awash International Bank S.C.; Respondent: Ato Guta Dessalegn Brief Description of the Case: The Respondent claimed bonus payment after voluntarily resigning from the Applicant. The Bank opposed the payment, stating that its directive contains a rule that “an employee who has been paid a bonus … Read more

Cassation File No. 126471

Date of Decision: December 16, 2016 (Tahsas 07, 2009 E.C.) Litigating Parties:    Applicant: Tikur Abay Shoe Share Company    Respondents: W/ro Haregewein Tilahun and W/ro Azalech Mengesha Summary of the Case: The respondents, after being discharged from their employment due to retirement, filed a lawsuit claiming they were entitled to a one-month salary payment … Read more

Cassation File No. 114068

Date of Decision: October 23, 2008 (E.C.) Litigating Parties:    Applicant: Ethio Telecom (South Region)    Respondent: Mr. Ayele G/Yes Summary of the Case: The Respondent was detained for more than 30 days on suspicion of a crime, after which he was acquitted by a court and reinstated to his position. The Respondent sought the … Read more

Case No.: 246670

Tsehay Insurance S.C. v. Michael Girma Nigatu et al. Key Information: •          Case No.: 246670 •          Date: November 28, 2016 E.C. •          Applicant: Tsehay Insurance S.C. •          Respondents: 13 individuals, including Michael Girma Nigatu. Key Legal Rule/Interpretation: •          The case centers on the payment of bonuses to employees who resigned before the bonus was implemented, … Read more

Cassation File No. 246670

Cassation File No. 246670 Date: December 7, 2023 (Hidar 28, 2016 E.C.) Judges: Teferi Gebru (PhD) Endashaw Adane Teshome Shiferaw Wazimo Wasira Senait Adenew Applicant: Tsehay Insurance S.C. (Represented by Attorney Habtamu Wondwosen) Respondents: 1. Michael Girma Nigatu 2. Hiwot Molla Abebe 3. Emebet Goshu Beyene 4. Ephrem Mekasha Abebe 5. Netsanet Yibeltal Assefa 6. … Read more

Bonus Under Ethiopian Employment Law

Legal Nature and Statutory Framework of Bonus Under the Ethiopian labor law regime, specifically Labor Proclamation No. 1156/2011, a bonus is legally distinguished from basic wages or salary. According to Article 53(2)(c) of the Proclamation, a bonus is defined as a gratuity or an additional payment made by an employer that does not constitute part … Read more