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Work Permits: Renewal and Cancellation

Renewing your work permit

Once you obtain a work permit, you must renew it every year.

General managers and deputy general managers can renew it for an unlimited amount of time.

However, in the cases on PLCs and SCs, the general and deputy general manager’s term might be limited and specified on the company’s Memorandum of Association (MoA).

If the term has been specifically mentioned, for example, if the general manager’s appointment is for 5 years only, then the company has to extend it through a minute of shareholders to prevent its cancellation.

As for expatriates in other positions, the work permit can be renewed a maximum of 3 times (3 years).

During this time, they must train locals under them and equip them with the skills and knowledge that will allow Ethiopians to take over their tasks.

Nonetheless, there may be special circumstances that require exceeding this limit. For example an expat might be essential to a company in finishing a particular work.

Though uncommon, following the company’s application for an extended renewal, the relevant authority might allow renewal for a short period of time.

Requirements for a General Manager and deputy general manager

  • Duly filled application form signed by the general manager
  • Passport (original + 1 copy)
  • Work Permit book (original + 1 copy)
  • Residence ID (original+ 1 copy)
  • A copy of renewed Investment permit / business License
  • Power of Attorney of the general manager and Identification Card/ passport (if an agent is processing, original + 1 copy)
  • 1,500ETB

Requirements for Expatriates in other positions

  • Duly filled application form signed by the general manager
  • A training schedule sheet, showing the training they have provided to Ethiopian employees.
  • Passport (original + 1 copy)
  • Work Permit book (original + 1 copy)
  • Residence ID (original+ 1 copy)
  • A copy of renewed Investment permit / business License
  • Power of Attorney of the general manager and Identification Card/ passport (if an agent is processing, original + 1 copy)
  • 1,500 ETB

The work permit ID book has slots for 3 renewals (3 years). Therefore, for general/ deputy general managers or expatriates who have the approval to stay for more than 3 years, there is a payment of an additional 1,200 ETB for changing the work permit book.

What happens if I’m late to renew a work permit?

For expatriates who apply for renewal within a month’s time after the date of expiration, they will have to pay an additional 50% of the original renewal price (ETB 750), which brings the total to ETB 2250.

Meanwhile, expatriates who apply for renewal within 2 months will have to pay an additional 100% of the original renewal price, bringing the total to ETB 3000.

On the other hand, work permits coming for renewal 3 months or more after their date of expiration will not be renewed and will be canceled after the required penalty for late cancellation is paid.

Canceling your work permit

You can apply for a work permit cancellation once expatriates finish their terms or at any moment before the end of their term.

Requirements for a General Manager and Deputy General Manager

  • An Application letter signed by the general manager
  • A minute of shareholders removing the general or deputy general manager from said position. (for PLCs, SCs and branch companies)
  • Work Permit Book (Original + 1 copy)
  • Passport (Original + 1 copy)
  • A copy of renewed Investment permit / business License
  • Power of Attorney of the general manager and Identification Card/ passport (if an agent is processing, original + 1 copy)

Requirement for Expatriates in other positions

  • An Application letter signed by the general manager
  • Work Permit Book (Original + 1 copy)
  • Passport (Original + 1 copy)
  • A copy of renewed Investment permit / business License
  • Power of Attorney of the general manager and Identification Card/ passport (if an agent is processing, original + 1 copy)

What happens if I’m late to cancel a work permit?

If You present the work permit for cancellation within a month after its date of expiration, the company will have to pay 50% of the renewal price (750ETB) in a penalty in order to cancel.

Furthermore, If you do not renew the work permit within 3 months after its date of expiration, you will have to pay a penalty of ETB 1500 and cancel it.

In addition, this amount will increase by ETB 1500 for every year the work permit remains without being canceled.

Circumstances leading to forced cancellation

The relevant authorities may cancel the work permit if:

  • The expatriate engages in work other than what was intended when the work permit was issued.
  • The relevant government authority confirms that the presence of an expatriate in the country is a threat to national security.
  • The work permit was obtained through illegal means.
  • The expatriate and employer do not fulfill their legal obligations.
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