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Legal Updates
The Distinction between a Commercial Agent and a Commission Agent in Ethiopia Both commercial and commission agents are traders that need commercial registration and licensing to operate in Ethiopia according to the Commercial Code, the Commercial Registration and Business Licensing Proclamation No. 980/2016, and the Directive to Provide for Commercial Registration, Licensing, and Post-licensing Inspection,...
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Is the Declaration of Bankruptcy a Mandatory Requirement to Terminate an Employment Contract due to a Reduction in Work Volume or Profit? The Labor Proclamation No. 1165/2019 provides conditions under which an employer may terminate a worker’s employment contract with prior notice. Article 28(3) of the Proclamation, specifically, stipulates that those grounds attributable to the...
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Legal Update- Civil Society Organizations’ Income-Generating Activity Directive No. 937/2022 PDF Version Available Here Civil Society Organizations (CSOs) undertake their activities primarily from the donations they receive from domestic/foreign organizations and individuals. But donation is not reliable and donated funds may not always be sufficient to carry out their objectives. Thus, it is crucial to...
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Legal Update on the Mergers, Divisions, Conversions, and Dissolutions of Civil Society Organizations Directive No. 936/2022 PDF Version Available Here Purpose: Directive No 936/2022 on the Mergers, Divisions, Conversions, and Dissolutions of Organization came into effect on 22nd December 2022 with the main aim of implementing the provisions of the Organizations of Civil Societies Proclamation...
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Can a taxpayer present evidence to the tax authority after an Audit has started? Ethiopian tax statutes have not addressed the admissibility of evidence presented to the tax authority (the Ministry of Revenue) once an audit has started. The repealed Financial Bookkeeping Directive No. 152/2019 and the new Directive No. 176/2022 don’t sufficiently cover the...
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Main Features of the National Digital ID Proclamation No. 1284/2023 PDF Version Available Here A digital ID system has various benefits when it is implemented in a country. Among its benefits, it helps with proper planning of national development, creates an economic transition, ensures good governance, reduces waste of resources, prevents crime, reduces duplication, and...
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Legal Update on the National Payment System (Amendment) Proclamation No. 1282/2022 PDF Version Available Here On 22 December 2022, the House of Peoples’ Representatives of Ethiopia ratified the National Payment System (Amendment) Proclamation No. 1282/2022 amending the existing National Payment System Proclamation No. 718/2011. The bill was anticipated for a long time as it promised...
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Federal Supreme Court Cassation Bench Decision, File No. 233331: Is Bonus a Demandable Right of a Worker? The Federal Supreme Court Cassation Bench rendered a decision on the 30th of January 2023 under Case No. 233331 on the modalities of paying bonuses to resigned workers. This is a complimentary decision to previous cassation bench decisions...
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