Expatriate Work Permit Revocation in Ethiopia: A compliance Guide for Employers

When ending or changing an employment contract with an expatriate employee in Ethiopia, it is important to understand how work permits can be revoked. As companies who employ foreign professionals will know, it is very important to take into consideration how your exit processes comply with national regulations.

According to the EIC Directive No. 772/2001, work permits can only be issued under strict conditions. These conditions include that the role matches the criteria given, evidence of the relevant qualifications, and that a commitment to skill and knowledge sharing will be carried out. A work permit can only be issued for one specific sponsor, role and length of time. If there is any interruption to the employment relationship, the work permit will be revoked.
When looking at regulations relating to investment and foreign employment, there are regulations in place to govern how work permits are revoked. Under certain circumstances, your work permit may be revoked by the relevant commission/ministry before the end of the permit. This could be if the employment contract has been terminated, there have been inconsistencies or lies in the professional qualifications given, or the role has been removed early. If the employment contract has been terminated early, then there is no longer a reason for the work permit to be active and will therefore be revoked.

Companies have a responsibility to notify the relevant authorities that there has been a change. If the employment relationship with the expatriate has ended, you must notify the immigration and labor authorities within a strict timeframe (5 working days). If you don’t notify the authorities, then the work permit will still be active on the government systems.

If you don’t follow the correct process to revoke the work permit, then you could be putting your company at risk. One of the most common mistakes made is assuming there is a grace period. Many employers assume that by informing the employee they are fine, however this is not the case. If the work permit isn’t revoked/cancelled on the government systems, then your company could be held responsible for having illegal foreign workers.

Ensure that your exit processes are integrated with your immigration processes. Any resignations/terminations should alert your legal team to notify the MoLS. Keep detailed records of any employment contracts, termination letters, communication and evidence of submissions to the authorities. Ensure that your local employees are meeting their performance targets to ensure that you are complying with your knowledge sharing requirements.