Backpay and Arrears of Salary in Ethiopia: Remedial Limits and Judicial Obligations
This post examines the legal framework for backpay (ውዝፍ ደመወዝ) under Labor Proclamation No. 1156/2011. It clarifies that backpay is primarily a corollary to reinstatement, intended to make the worker whole for lost income. We explore the statutory caps—six months for first-instance courts and up to one year for appellate cases—and the Federal Supreme Court Cassation Division’s stance on “double recovery,” detention periods, and the exclusion of non-wage benefits like bonuses from backpay calculations.