Recently, an employer of employees based in Ethiopia asked our Praxima team: When do severance and related payments apply?
Severance pay is applicable where an employee has completed probation and is not eligible for pension, including circumstances such as:
The Labour Proclamation provides the following framework:
These calculations are based on the average daily wage of the last week of service.
If this article raised questions or highlighted areas you’d like to understand better, let’s talk.Our team can walk through the details, implications, and practical considerations for your business.
