The Ministry of Labour & Skills has introduced a directive to regulate foreign employment agencies more strictly. It establishes standards for agency operations, capital requirements, and reporting. The rules aim to ensure better oversight of workers sent abroad.
On October 18, 2025, the Ministry of Labour & Skills issued a new directive under Ethiopia's foreign employment framework. This regulation sets specific standards for the size, capital, and operations of agencies facilitating overseas job placements.
Agencies are categorized by levels, determining their capacity to serve workers. Newly established agencies can handle between 10 and over 100 workers per day, depending on their level. Office space requirements scale accordingly, ranging from 100 square meters for lower levels to 700 square meters for the highest.
Financial obligations are stringent. Level-one agencies must maintain a paid-up capital of 20 million Ethiopian birr and provide a security deposit of 250,000 dollars or its birr equivalent. Lower-level agencies require at least five million birr in capital and a 50,000-dollar deposit.
Reporting is mandatory through the Ethiopian Labour Market Information System (E-LMIS). Agencies must submit quarterly reports within 15 days of each quarter's start, detailing the number of workers deployed abroad.
Operational limits include the number of employment links agencies can form. Level-one agencies may establish up to 20 links in a single destination country, with no limit on origin countries. Lower-tier agencies are restricted to four links and sourcing from no more than two origin countries.
Staffing must match the agency's scale, from at least 10 employees for smaller operations to over 60 for the largest. These measures seek to professionalize the sector and protect Ethiopian workers seeking foreign employment.