Understanding Severance Pay in Ethiopia: Legal Grounds, Calculations, and Judicial Limits

Statutory Basis and General Principles of Severance Pay Severance pay in the Ethiopian legal system is a mandatory financial benefit designed to provide a social security cushion for workers whose employment contracts are terminated under specific circumstances not involving their own fault. Under Labour Proclamation No. 1156/2011, primarily Articles 39 and 40, severance pay is … Read more