The presence of a flexible labour market is a key aspect of a neo-liberal macroeconomic
policy of trade liberalisation. In line with this policy, many developing countries since the
1980s have adopted Structural Adjustment Programmes that require legal and institutional
reform including labour market deregulation. Ethiopia started such a program in 1992. One
consequence of deregulation under a flexible labour market policy is claimed to be an
increase in women’s participation in the labour market and a reduction in gender wage gaps.
It is also argued that this will benefit developing countries most by creating employment
opportunities for their abundant, predominantly female unskilled labour force and thereby
foster economic growth. This paper attempts to examine the links between trade
liberalisation, labour law and gender in Ethiopia using available literature and statistics. It
focuses on Ethiopian labour law and policy before and after the reform and the implication
for women’s work. It specifically analyses the protection of temporary workers under
Ethiopian labour law and women’s position in this context. It shows that trade liberalisation
caused changes in labour law and policy in Ethiopia. The paper also shows the rise of flexible
labour arrangements that fall outside the scope of labour law protection. Women are
predominantly occupied in such work arrangements. As a result they are subject to different
vulnerabilities. The paper argues that there is a need for the adoption of a more gender
sensitive employment policy that recognizes the reproductive roles and social status of
women. Moreover, it further argues that there is a need to redesign labour law so that it gives
effective protection to such workers.