Work & workplace rights

The Federal Government of Somalia and Somaliland legally recognize the right to work for forcibly displaced persons (FDPs), including refugees and asylum seekers. Somaliland’s 2023 Refugees and Asylum Seekers Law explicitly grants refugees the same employment rights as nationals. In Puntland and South-Central Somalia, refugees may also work without needing permits. Somalia’s broader labor framework and national policies promote the economic inclusion of FDPs, especially through the Global Compact on Refugees (GCR), under which Somalia pledged to create 250,000 new jobs, reserving 25% for internally displaced persons (IDPs) and refugee-returnees.

Despite this progressive legal landscape, practical access to formal employment remains extremely limited. Refugee unemployment is estimated at around 91% in Somalia. Barriers include administrative obstacles, discrimination, and the lack of valid identification or work permits. Many refugees rely on informal labor markets, where they face insecurity and exploitation. In Somaliland, Ethiopian refugees are often confined to low-paid, menial work and frequently encounter wage theft or abuse, with minimal access to legal remedies.

While work permits are required in both Somalia and Somaliland, the process is expensive, documentation-heavy, and largely inaccessible to FDPs. Although employers are expected to facilitate permit applications, many avoid hiring refugees to bypass the administrative burden. Without permits, refugees are pushed into informal work, increasing their vulnerability to labor rights violations.

Some refugees engage in self-employment or operate small businesses, but legal and financial obstacles limit these opportunities. Access to bank accounts, credit, and business registration is hampered by documentation requirements and discriminatory practices. While NGOs offer some support, these initiatives are fragmented and often under-resourced. For refugees with professional qualifications, opportunities are even scarcer due to the lack of formal mechanisms for recognizing foreign credentials, resulting in widespread underemployment.

Tax laws apply to FDPs who engage in formal employment, but enforcement is weak. Refugees often lack awareness and legal support to comply. Although national labor laws prohibit child labor and forced labor, enforcement is inconsistent. Refugee children, in particular, are vulnerable to hazardous work, often driven by household poverty.

Labor protections—including safeguards against unfair dismissal, human trafficking, and workplace discrimination—are legally in place but rarely benefit FDPs. Access to legal redress is minimal, and public employment services and government-led entrepreneurship programs generally exclude displaced populations. A few NGOs provide targeted job assistance, but reach remains limited.

While national development plans reference FDP inclusion in skills development and employment, implementation is lacking. Though labor laws guarantee fair pay and collective bargaining, these protections are often inaccessible to refugees due to their legal status. Online and digital work remain largely unregulated, and digital exclusion further limits refugee participation in remote or online employment opportunities.