Council of Ministers Regulation No. 157/2008
COUNCIL OF MINISTERS REGULATION TO PROVIDE
FOR THE ADMINISTRATION OF EMPLOYEES OF
THE NATIONAL BANK OF ETHIOPIA
This Regulation is issued by the Council of Ministers pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No.471/2005 and Article 24 of the National Bank of Ethiopia Establishment /as Amended/ Proclamation No.591/2008.
1. Short Title
This Regulation may be cited as the “Administration of Employees of the National Bank of Ethiopia Council of Ministers Regulation No. 157/2008”.
In this Regulation, unless the context otherwise requires:
1. “Proclamation” means the National Bank of Ethiopia Establishment /as Amended/ Procloamation No. 591/2008;
2. “Bank” means the National Bank of Ethiopia;
3. “Board” means the Board of Directors of the Bank;
4. “top management member” means the Governor or the Vice Governor of the Bank;
5. “Employee” means a person who has entered into a permanent of employment with the Bank and includes top management member:
6. “salary” means the regular monthly payment to which an employee is entitled in return for the performance of the work he performs under a contract of employement; provided however, that it may not include other related payments;
7. “job position” means a set of current duties and responsiblitities to be performed full time by an individual employee;
8. “promotion” means the transfer of an employee to a higher level of job;
9. “transfer” means the transfer of an employee from the head quarter to a branch, from a branch to the head quarter or to another branch, from a work unit to another work unit or from a job position to another job position of the Bank;
10. “branch” means any branch office or satellite office of the Bank opened outside of the head quarter;
11. “disciplinary measure” means a sanction to be taken against any employee who commits an offence in contravention of this Regulation or directives or code of conduct issued by the Bank;
12. “complaint” means grievances raised by one or more employees because of the interpretation or execution of this Regulation or directives of the Bank or because of any other irregularities;
13. “overtime work” means work done by an employee outside of the normal working hours;
14. “leave” means various types of leave to be given to an employee with or without pay;
15. “conditions of work” means the entire field o relations between the Bank and the employee and includes hours of work, salary, leave, health and safety, compensation to employment injury, dismissal, retrenchment and severance payment, disciplinary and grievance procedure and any other similar matters;
16. “temporary employee” means a person who is employed by the Bank for a job which is not permanent in nature or where circumstances so require to perform, temporarily, the responsibilities of a permanent position; provided however, that it may not include:
(a) Persons employed as daily laborers who are paid on daily basis;
(b) Persons who are assigned for internship or training;
(c) Persons who enter into contracts with the Bank as independent contractors for considerations;
(d) Persons who enter into a contract with the Bank due to their special skills and ability on part-time basis for consideration;
17. “Administrative decision” means a decision given by the top management or a management member designated by the top management, either orally or in writing, on a recommendation by disciplinary or grievance handling committee or without following the formal procedures with regard to disciplinarty matters or on other matters stipulated in this Regulation;
18. Any expression in the masculine gender includes the feminine.
3. Scope of Application
This Regulation shall only be applicable to permanent employees of the Bank.
ORGANIZATIONAL STRUCTURE, HUMAN
RESOURCE PLANNING, SALARY SCALE AND STAFF
RECRUITMENT OF THE BANK
4. Organizational Structure of the Bank
1. The bank shall undertake studies on its organizsational structure and staffing plan that enable it to achieve its goals and implement the same upon approval by the Board.
2. The Bank shall, based on its strategic plans, undertake studies on its short, medium and long range human resource planning and implement the same upon approval by the Board.
5. Salary Scale
The top management o the Bank shall undertake, and submit to the Board, studies for periodic revisions of the salary scale of the Bank based on economic changes or other relevant conditions and implement the same approval by the Board.
6. Contract of Employment
1. A contract of employment shall be formed where a person agrees to perform work for and under the authority of the Bank in return for salary.
2. A contract of employment shall be stipulated clearly and in such manner that the parties are left with no uncertainty as to their respective rights and obligations under the terms thereof.
3. The Bank may use vacancy announcements or other means to fill vacant positions. The detail shall be stipulated by directive to be issued by the Bank.
4. Where recruitment takes place in accordance with sub-article (3) of this Article, there shall be no discrimination among applicants in filling vacancies because of their ethnic origin, sex, religion, political outlook, disability, HIV/AIDS or on any other ground.
5. The following may not be eligible to be employed by the Bank.
a) a person under the age of 18 year;
b) any person who has been convicted, by a court of competent jurisdiction, of breach of trust, theft or fraud;
c) without prejudice to paragraph (b) of this sub-article, a person who has been dismissed by any employer on grounds of disciplinary misconduct, before the lapse of five years from the date of his dismissal.
6. Any new recruit shall submit medical certificate except HIV/AIDS test to prove his fitness for service and written testimony to prove that he has no police record with regard to crimes referred in sub-article (5) /b/ of this Article.
7. Probation Period
1. A person may be employed for a probation period for the purpose of testing his suitability to a position in which he is expected to be assigned.
2. A person-re-employed by the Bank on the same job position may not be subject to probation.
3. The period of probation shall be for six months.
4. Unless this Regulation or directive of the Bank provide otherwise, an employee on probation shall have the same rights and obligations as that of an employee who has completed his probation period.
5. An employee on probation may terminate his contract of employment without notice.
6. Where the performance result of an employee on probation is below satisfactory, the Bank may terminate the contract of employment without notice and without being obliged to pay severance payment or compensation.
7. Where the employee on probation has recorded satisfactory or above satisfactory performance result, a lette of permanent employment shall be issued by the Bank.
8. Where the employee on probation is absent from his work due to employment injury, he may be allowed to complete the remaining probation period following the date of his recovery.
9. Where the employee on probation period is absent due to force majored for a period less than one month, the performance evaluation will cover only the period in which he was present at work.
10. Where an employee on probation is absent due to maternity leave, for a period of more than one month, she shall be allowed to complete the remaining probation period following the end of her maternity leave; provided however, that if her abvsence is less than a month, her performance evaluation will cover only the period in which she was present at work.
8. Temporary Employment
The Bank may hire a temporary employee only for a job which is not of a permanent nature; provide, however, that it may, where circumstance so require, hire a temporary employee to a permanent job position.
9. Acting Assignment
1. Where circumstances so require an employee may be assigned to a higher position in an acting capacity for not more than a year.
2. Notwithstanding the provision of sub-article (1) of this Article, an employee may be assigned to higher position in acting capacity to replace an employee who is on education or training program that lasts for more than a year.
3. Any employee assigned in an acting capacity shall be entitled to acting allowance. The amount of such allowance shall be determined by directive issued by the Bank.
10. Promotion and transfer
The Bank shall issue directive on how vacant positions be filled by promotion and how transfer of an employee is handled.
The Bank may issue and implement directives stipulating procedures under which an employee of the Bank may work in other governmental institutions or enterprises and an employee of another institution or enterprise may work for the Bank based on secondment.
RIGHTS AND OBLIGATIONS
12. Rights of the Bank
Based on the requirements of this Regulation and other laws, the Bank shall have the right to direct its operations and to take or cause the taking of any proper measure for the administration of its staff.
13. Rights of Employees
1. Unless otherwise prohibited by law, court order or directives on disciplinary measures issued by the Bank based on this Regulation, any employee shall get and enjoy all benefits and rights stipulated in this Regulation and directives issued by the Bank
2. Any employee shall have the right to lodge a complaint to the Bank whenever he encounters conditions of work contrary to his promotion and rights.
14. Obligations of the Bank
The Bank shall:
1. respect provisions of this Regulation and directives issued pursuant to this Regulation;
2. by no means commit any act that undermines the rights and dignity of an employee;
3. take all the necessary actions to enable the employee to understand the meaning and execution mechanisms of this Regulation and directives issued pursuant to this Regulation;
4. provide each employee with a proper job description and a performance evaluation result;
5. provide employees with the necessary working tools and materials;
6. implement all benefits stipulated in directives issues pursuant to this Regulation;
7. endeavor to make the work place safe and healthy for the employees.
15. Obligations of Employees
Any employee shall:
1. Be loyal to the public and the Constitution;
2. Respect and implement government policies;
3. Contribute all his talents and ability for the execution of his contractual obloigations and implementation of the Bank’s directives;
4. not commit acts which endanger the Bank’s clients, himself, his fellow workers and the bank’s property;
5. give and as per the instructions given by his work unit or in any other manner he thinks feasible in the occurrence of accidents endangering the Bank or its employee or guests;
6. accept any act of supervision properly exercised, at any time, by his immediate supervisor or any other higher official with respect to his duties and respect orders given in relation thereto;
7. not report to work in a stat of intoxication by alcohol or drugs;
8. not commit any act that will cause disagreement among employees or between employees and the Bank or provoke any dispute;
9. not accept or give any bribe;
10. not refuse to present for medical examination or vaccination, except for HIV/AIDS, when requested by the Bank;
11. observe safety and accident prevention rules and take the necessary safety precautions;
12. respect all directives and code of conduct issued by the Bank.
CONDITIONS OF WORK
16. Regular Working Hours
Regular working hours of employee’s may not exceed 8 hours a day and 30 hours a week. The details shall be determined in a directive to be issued by the Bank.
17. Overtime Work
1. The Bank by the preference of an employee, may give compensatory leave or over time pay for over time work done by an employee.
2. Conditions for overtime work, overtime pay, amount of over time pay and compensatory leave shall be determined by a directive to be issued by the Bank.
18. Annual Leave
1. Annual leave to be granted for a one year service may not be less than 20 working days. The duration of annual leave for any employee may not exceed 30 working days.
2. An employee having a service of more than a year shall be entitled to additional leave of one working day for every additional year of service.
3. Previous service rendered in any government institutions shall be considered for application of sub-article (2) of this Article.
4. Annual leave shall be granted within the budget year in accordance with a leave made known to the employees and leave made and prepared on the basis of due consideration of the interest of the Bank and, as much as possible, the preference of each employee.
5. Any newly appointed employee shall not be entitled to annual leave before serving for eleven months.
6. Annual leave may not be postponed; provided however, that the Bank may postpone an employee’s annual leave for up to two years where it finds it necessary due to work loads. The accumulated leave shall be granted to the employee in the third budget year.
7. Annual leave may not paid in terms of money; provided however, that where the contract of employment o an employee is terminated, unused annual leave shall be given in terms of money.
8. Notwithstanding the provisions of sub-article (7) of this Article, an employee whose annual leave is postponed for two years in accordance with sub-article (6) of this Article may claim payment, and the Bank shall make the payment for the number of working days for the first year of the accumulated annual leave.
9. An employee shall be entitled to advance payment of his monthly salary at the time of taking his annual leave.
10. The salary an employee receives during is annual leave shall be equal to what he would receive if he had continued to work.
11. Without prejudice to the provisions of sub-article /5/ of this Article an employee after the completion of 11 months shall be granted annual leave based on the service rendered.
12. An employee who resigns after taking his annual leave in accordance with sub-article /4/ of this Article before the end o the budget year shall be liable to pay back part of the advance salary for which he has not rendered service.
19. Maternity Leave
1. The Bank shall grant leave to a pregnant woman employee with pay for medical examination connected with her pregnancy; provided however, that she is obloiged to present a medical certificate for her examination.
2. A pregnant woman employee shall, upon the recommendation of a medical doctor, be entitled to a leave with pay.
3. A woman employee shall be granted a period of 30 consecutive days of leave with pay preceding the presumed date of her confinement and a period o 60 consecutive days maternity leave after her confinement.
4. If the pregnant employee delivers before the completion of prenatal leave which is granted under sub-article (3) of this Article, the unused prenatal leave will be granted after her confinement.
5. If the pregnant employee does not deliver on the presumed date, the days subsequently taken before her confinement shall be replaced by the annual leave she is entitled to within the budget year or that of the following budget year if no annual leave is left.
6. An employee shall be entitled to sick leave in accordance with Article 20(1) of this Regulation, if she becomes sick after completion of her maternity leave under sub-article (3) of this Article.
7. Any employee shall be entitled to a paternity leave with pay for five working days at the time of his wife’s delivery.
20. Sick Leave
1. Any employee shall be entitled to sick leave based on medical certificate where he is unable to work due to sickness.
2. The leave referred to in sub-article (1) of this Article shall, in no case, be more than eight months counted consecutively or separately in the course of any twelve months period starting from the first day of his sickness.
3. Sick leave to be granted in accordance with sub-article (2) of this Article shall be with full pay for the first three months, half pay for the next three months and without pay for the last two months.
4. Where an employee absents himself from work on grounds of sickness, he shall notify the Bank the day following his absence unless prevented by force majors.
5. An employee on probation shall be entitled to a one month sick leave with pay on the basis of medical certificate.
21. Leave for Personal Matters
Any employee shall be entitled to leave for personal matters such as mourning, wedding and national examination for a maximum of seven working days within a budget year.
22. Special Leave with Pay to Perform Legal Obligations
Any employee shall be entitled to special leave with pay where:
1. He is summoned by a court or any other competent authority, for the time utilized for such purpose;
2. he participates in the election of government official, for the duration of the voting.
23. Leave without Pay
1. If an employee who has completed his probation, upon sufficient gbround applies for a special leave without pay, the top management may authorize the grant of such leave if it does not adversely affect the interest of the Bank.
2. An employee who has completed his probation period and runs for election shall be entitled to leave without pay during the election campaign and for the duration of the voting.
PAYMENT OF SALARY, ALLOW ANCE
BENEFITS AND INCENTIVES
24. Payment of Salary
1. The Bank shall make payments of salary to the employees or to their legal representatives at the end of each month as per the European Calendar.
2. The salary of an employee may not be attached or deducted except in accordance with.
(a) A written consent of the employee;
(b) Court order; or
(c) The provisions of the law.
3. Monthly deductions from the salary of an employee to be made pursuant to sub-article 2/b/ or /c/ of this Article shall not exceed one third of his salary.
25. Increment of Salary
The Bank shall make annual salary increments to those employees obtaining an evalutation result of satisfactory or above satisfactory, based on the Bank’s action plan performance, the employees’ performance evaluation results and upon approval by the Board.
1. Any allowance shall be paid only for the purpose of carrying out the functions of the Bank.
2. The Bank shall issue directive to determine the types and conditions of payment of allowances.
27. Medical Benefits
The Bank shall cover.
1. Local and overseas medical expenses of the top management of the Bank;
2. Local medical expenses of spouses and minor children of top management of the Bank;
3. Local medical expenses of the employee and his spouse;
4. Overseas medical expenses of any employee to a certain limit based on the medical certification of a Medical Board. The details shall be determined by a directive;
5. Local medical expenses of a retired employee.
28. Insurance Benefits
The Bank shall insure its employees for accidents occurring within 24 hours the day.
29. Various Benefits
1. The Federal Government shall provide residential houses to the top management of the Bank; provided however, a top management member shall be entitled to opt for the payment of housing allowance.
2. With the purpose of retaining its employees, the Bank shall undertake studied on various benefits package and implement the same upon approval by the Board.
Based on performance planning and management system evaluation results, the Bank may, upon approval of the Board, give to employees incentives on yearly basis.
TRAINING AND EDUCATION
31. Training and Education
The Bank shall, with a view to fulfilling its mission, devise and implement ways and means of acquiring adequate local and overseas training and education for its employees.
32. Managing Personal Records and Information Profile o Employees
The bank shall maintain database and keep personal records containing all relevant information regarding each employee.
DISCIPLINARY MEASURES AND GRIEVANCE
33. Types and classification of Disciplinary Penalties
1. Depending on the gravity of the offence, one of the following penalties may be imposed on an employee for breach of discipline:-
(a) oral warning;
(b) written warning;
(c) written warning and fine up to one month’s salary;
(d) final written warning and fine up to two months’ salary;
(e) final written warning and down grading up to two pay leavels or up to two grades;
2. The penalties specified under paragraphs (a) to (c) of sub-article (1) of this Article shall be classified as simple disciplinary penalties.
3. The penalties specified under paragraphs (d) to (f) of sub-article (1) of this Article shall be classified as rigrous disciplinary penalties.
34. Offences Entailing Rigorous and Simple Penalties
1. Without prejudice to the provisions of Article 45 sub-article/1/ of this Regulation, rigorous disciplinary penalties may be imposed for the following offences:
(a) to undermine one’s duty by being disobedient, negligent or tardy or by none-observance of working procedures;
(b) Deliberate procrastination of cases or mistreatment o clients;
(c) to engage in a work which has conflict of interest with the purpose of the Bank;
(d) to withhold information on acts being performed to harm the Bank;
(e) unjustifiable repeated absenteeism or non-observance of office hours in spite of being penalized by simple disciplinary penalties;
(f) to commit any breach of discipline of equal gravity with the offences specified under this Article.
2. The Bank shall issue directive to determine offences entailing simple penalties.
35. Taking Disciplinary Measures
1. The Bank’s top management shall establish a committee which shall investigate disciplinary charges brought against an employee.
2. Disciplinary measures may be taken irrespective of any court proceedings or decision.
3. The committee shall have members not less than three and not greater than five.
36. Duties of the committee
1. Except disciplinary measures to be taken by work units under sub-article (1) (a) and (b) of Article 33 of this Regulation the committee shall submit recommendation to the Bank’s top management by investigation disciplinary charge brought against an employee.
2. The committee shall perform its duties as per directive issued by the Bank based on this Regulation.
37. Suspension of Employee
1. The Bank may suspend in writing an employee who has been charged for committing a disciplinary offence when it believes that failure to immediately suspend the employee is likely to cause damage.
2. The Bank may not suspend an employee for more than 30 consecutive days without giving a decision on the charge unless the employee is the cause for the delay. The employee may not get his salary for the period o suspension.
3. Unless a decision o dismissal is rendered against an employee charged for committing a disciplinary offence, the salary withheld at the time of suspension shall be paid to him without interest.
4. The suspension of anemployee may not deprive him of other rights and duties that are not affected by the suspension.
38. Establishment of Grievance Handling Committee
1. The top management of the Bank shall establish a grievance handling committee that conducts grievance inquiry, and submits recommendation to the top management.
2. The committee shall have not less than three and not more than five members to be selected by the top management of the Bank.
3. Each member of the committee shall have a two-year term of service. When the term of service of a member ends, he may be re-elected by the top management of the Bank.
39. Duties of the commit tee
1. The grievance handling committee shall investigate complaints lodged by employees of the Bank and submit recommendations to the top management within 30 working days of receipt of a complaint.
2. The committee shall perform its duties as per directive issued by the Bank based on this Regulation.
40. Complaints to be Handled by the Committee
1. The grievance handlinbg committee shall investigate complaints lodged by employees and submit recommendations relating to:
(a) interpretation and implementation of laws and directives;
(b) protection of rights and benefits;
(c) occupational safety and health;
(d) placement and promotion;
(e) performance evaluation;
(f) undue influence exerted by supervisiors;
(g) disciplinary measures taken as per Article 33 of this Regulation;
(h) unlawful suspension or termination of service;
(i) an illegal withholding or deduction of salary or other payments;
(j) infringement of rights arising from employment injury;
(k) matters arising from request for termination letters and service testimonials; or
(l) other issues related to conditions of work.
2. The employee shall submit his complaint to the committee within 15 consecutive days after being aware of the reasons for the grievance. He shall make acopy to the top management. The top management shall render a decision on the employee’s complaint within 45 working days from the lodging of the complaint.
3. An employee aggrieved by the administrative decision of the top management may present his case to the regular courts.
TERMINATION OF CONTRACT OF EMPLOYMENT
41. Termination of Contract of Employment
A contract of employment may be terminated by the operations of the law, upon the initiation of the Bank or the employee or by the agreement of the two parties.
42. Termination of Contract of Employment by the Operations of the Law
A contract of employment shall terminate on the following grounds:
1. on the expiry of the period or on the completion of the work where the contract of employment is for a definite period or work;
2. upon the death of the employee;
3. upon the retirement o the employee; or
4. when the employee is unable to work due to partial or total permanent incapacity.
43. Termination of Contract of Employment by Agreement
1. The Bank and an employee may terminate their contract of employment by agreement.
2. Termination by agreement shall be effective and binding on the employee only where it is made in writing.
44. Termination of Contract of Employment by the Bank
1. A contract of employment may be terminated where there are grounds connected with an employee’s conduct or with objective circumstances arising out of his inefficiency or inability to do his work and where an employee does not fulfill the minimum job or organizational requirement of the Bank.
2. The following may not be deemed to constitute legitimate grounds for termination of a contract of employment;
(a) the employees submission of grievance against the Bank or participation in judicial or other proceedings;
(b) nationality, sex., religion, political outlook, martial status, race, color, family responsibility, lineage, pregnancy, social standing of the employee.
45. Termination of Contract of Employment without Notice
1. The Bank shall be entitled to terminate a contract of employment on any of the following grounds:
(a) submission of false educational qualifycation or work experience or any other false document during the process of employment or thereafter;
(b) Presenting false medical document, cash receipts or any other similar document for personal or third party gain;
(c) destroying, erasing or altering any document of the Bank;
(d) stealing or robbing the money or property of the Bank or that of his colleague or a guest or taking any property which is not under his custody without the permission of the Bank;
(e) taking or giving or soliciting bribe in connection with the Bank’s work;
(f) imprisonment due to fraud, theft, deceit, breach of trust or other similar offence in connection with the Bank’s work or otherwise;
(g) inflicting damage to the Bank’s property or harm to the Bank’s staff, client or guest or attempting to inflict such damage or harm;
(h) forging signatures of the Bank’s officials or using the Bank’s seal for personal or third party gain;
(i) giving or revealing the Bank’s confidential documents to unauthorized persons without getting the necessary approval from the relevant managerial staff of the Bank;
(j) issuing a cheque to a third party without having money in a bank account and being aware of the fact;
(k) violating the proper work practive of the Bank for personal or third party gain;
(l) initiating physical violence at the place of work;
(m) neglecting duty by being alcoholic or drug addict;
(n) committing acts which are contrary to public morality at work place;
(o) refusing to carry out his duties as per the job description given to him;
(p) absence from work without good cause for a period of 10 consecutive days;
(q) committing sexual violence at the place of work;
(r) passing a decision which hurts the Bank in violation of the Bank’s policy and work procedure or abusing of power;
(s) deliberately obstructing work or collaborating with others in committing such offence;
(t) disseminating deliberately fabricated information to create disagreement between the Bank and the employees and for initiating riots or attempting to establish the same;
(u) committing act of deceitful or fraudulent conduct in carrying out his duties;
(v) intentionally participating or assisting in the commission of the offences stated under this sub article.
2. Where the Bank terminates a contract of employment in accordance with this Article, it shall provide the employee with a letter of termination specifying the reasons for and the date of termination.
46. Termination of Contract of Employment with Notice
1. The following grounds shall constitute good cause for the termination of a contract of employment with notice of 30 consecutive days:
(a) the employee’s manifest loss of capacity to perform the work to which he has been assigned or his lack of skill to continue his work as a result of his refusal to take the opportunity of training prepared by the Bank to upgrade his skill or, after having been trained, his inability to acquire the necessary skill;
(b) the employee is, for reasons of health or disability, permanently unable to carry out his obligations;
(c) the job position of the employee is cancelled for good cause and the employee cannot be transferred to another position;
(d) due to disciplinary offences, disciplinary measures are taken against the employee.
2. Where an employee does not return to work as per sub-article (3) or (5) of Article 20 of this Regulation, his contract of employment shall be terminated by reason of sickness.
1. Without prejudice to Article 46(1) (c) of this Regulation, any employee shall be retrenched where:
(a) his position is cancelled;
(b) the Bank’s work unit closed; or
(c) redundancy of human resource is created due to restructuring and redesigning of processes;
and where it is not possible to reassign him or where he is reluctant to accept a position of lower grade.
2. The Bank shall issue directive on the retrenchment of employees.
48. Termination of Contract of Employment by employee with Notice.
1. Without prejudice to the obligations provided in laws and contracts, any employee who has completed his probation period, may, by giving 30 days prior notice to the Bank, terminate his contract of employment.
2. Any employee who has terminated his service without giving a prior notice as provided for in sub-article (1) of this Article shall be subjected to civil and criminal liability as may be appropriate.
3. Where the service of an employee is indispensable and he could not be replaced easily, the top management may delay his relese for a period not exceeding three months including the date of application.
4. Any employee who terminates his contract of employment in accordance with sub-article (1) and (3) of this Article shall settle all his obligations he owes to the Bank.
49. Termination of Contract o Employment by Employee without Notice
1. The following shall constitute good cause for an employee to terminate a contract of employment without notice;
(a) if the Bank has committed against the employee any act contrary to his human dignity and morals;
(b) if in the case of imminent danger threatening the employee’s safety or health, the Bank, having been made aware of such danger, failed to act.
1. The service of an employee, whose service is not extended beyond retirement age pursuant to Article 54 of this Regulation, shall be terminated on the last day of the last day of the last month in which he attained the retirement age determined by law.
2. The employee shall be notified of his retirement in writing six months prior to his retirement.
51. Termination on the Ground of Death
1. The service of an employee shall be terminated on the day of his death.
2. The full salary for the month in which an employee has passed away shall be paid to his spouse or legal heir.
52. Severance Payment
1. Any employee who completes his probation period and is not entitled to pension allowance on the date of the termination of the employment contract shall be paid severance pay where his contract of employment is terminated on the following conditions:
(a) contract of employment is terminated in accordance with Article 46 sub-article 1 (c), Article 47 sub-article (1) and Article 49 sub-article (1) of this Regulation;
(b) where his contract of employment is terminated because of reason of partial or total disability and is certified by medical board;
(c) where he has given service to the Bank for a minimum of five years and his contract of employment is terminated because of his sickness or his contract of employment is terminated on his own initiative provided that he has no contractual obligation, relating to training or education, or education, to serve more with the Bank; however, this does not include an employee whose service is 25 years and above and aged 55 and above;
(d) where the service of an employee is terminated due to his death which is to be paid to his spouse or legal heir;
(e) where his contract of employment is terminated on his own initiative because of HIV/AIDS.
2. Amount of severance payment that may be paid to an employee shallo be as follows;
(a) His salary of one month for the first year of service; for the service o less than one year, severance pay shall be calculated in proportion to the period of service;
(b) in the case of an employee who has served for more than one year, payment shall be increased by one-third of the said sum referred to in sub-article (2) (a) of this Article for every additional year of service, provided that the total amount shall not exceed his salary of twelve months;
(c) where a contract of employment is terminated in accordance with Article 46 sub-article (1) (c) and Article 47 sub-article (1) the employee shall be paid two months of his salary, in addition to payments under sub-article (2) (a) and (b) of this Article.
53. Issuance of Certificates
1. Where a service of an employee on service is terminated for any reason or where he so requests, he shall be provided with a certificate of service indicating the type and duration of service as well as his salary.
2. Issuance of certificate service upon termination of contract of employment shall be effected after an employee has settled his obligations in accordance with Article 48 sub-article (4) or this Regulation.
54. Extension of Service
1. The service of an employee may be extended by the Bank beyond his retirement age; provided however, that the extension period of service may not exceed ten years.
2. The service of an employee may be extended pursunt to sub-article (1) of this Article where:
(a) his qualification, special skill and ability is found to be essential to the Bank;
(b) it is not possible to replace him by another employee through promotion, transfer or recruitment;
(c) he is proved fit for service by medical certificate;
(d) he has agreed to the extension of his service; and
(e) The extension is approved by the top management of the Bank or, where appropriate, by the Board.
55. Performance Evaluation
1. The Bank shall design a performance evaluation system based on employee performance plan.
2. The purpose of performance evaluation shall be:
(a) to enable employees to effectively discharge their duties in accordance with the expected level, quality standards and time and cost;
(b) to evaluate employees on continuous basis and identify their strengths and weaknesses with a view to improve their future performance;
(c) to identify training and upgrading needs of employees;
(d) to give rewards based on result;
(e) to enable management to make its administrative decisions based on concrete evidence.
3. The bank shall issue directive on performance evaluation.
56. Period of Limitation
1. An employee’s right to terminate his contract of employment in accordance with sub-article (1) of Article 49 of this Regulation shall lapse after 15 working days from the date on which the act occurred or ceased to exist.
2. Disciplinary measure shall not be taken against an employee who has committed an offence entailing simple disciplinary penalty unless such measure is taken within six months, from the time the commission of the offence is known; provided, however, that the official who has failed to take the disciplinary measures within the time limit shall be held responsible.
3. No disciplinary charge shall be brought against an employee who has committed an offense entailing rigorous disciplinary penalty and entailing criminal liability unless the disciplinary charge is brought within the time limit provided in the Criminal Code for the prosecution of such criminal offence.
4. No disciplinary charge shall be brought against an employee who has committed an offense entailing rigorous disciplinary penalty and entailing no criminal liability unless the disciplinary charge is brought within the time limit provided in the Criminal Code for the prosecution of petty offences.
5. Notwithstanding the provisions of sub-articles (3) and (4) of this Article, the official who has failed to present the disciplinary cases to the concerned body within a period of one month, shall be held responsible.
6. An action arising from an employment relationship shall be barred by limitation after six months from the date on which the claim becomes enforceable.
7. Notwithstanding the provisions of sub-article (6) of this Article, any action arising from termination of a contract of employment shall be barred after 30 days from the date of the decision of termination of the contract of employmet or after 30 days of a decision by the top management on the grievance in accordance with Article 40 sub-article (2) of this Regulation.
57. Power to Issue Directives
1. The Bank shall have the power to issue directives necessary for the implementation of this Regulation.
2. The existing policies, code of ethics, directives and practices of the Bank shall continue to be applicable unless they are inconsistent with the provisions of this Regulation.
58. Effective Date
This Regulation shall enter into force on the date of publication in the Federal Negarit Gazeta.
Done at Addis Ababa, this 30th day of December, 2008.
PRIME MINISTER OF THE FEDERAL
DEMOCRATIC REPUBLIC OF ETHIOPIA