Judicial Discretion

While reinstatement remains the primary remedy for unlawful termination under Ethiopian law, Proclamation No. 1156/2011 offers monetary compensation as a pragmatic alternative when returning to work is “impossible or highly difficult.” This judicial discretion prioritizes industrial peace and functional workplaces, particularly in cases where mutual trust has irretrievably collapsed or sensitive roles are involved. The legal framework also upholds employee autonomy, allowing workers to elect financial redress over reinstatement even during the judgment execution phase. To ensure substantive justice, precise calculation—specifically using a 26-day divisor for daily wages—is essential to providing the full measure of statutorily mandated relief.