The review examines labour law in Ethiopia's informal economy to assess workers' rights and challenges. An analytical approach was employed, focusing on legal texts and secondary data sources relevant to Ethiopia's labour law framework and its application within the informal economy. The analysis reveals that while some provisions exist, enforcement of these laws is weak, particularly regarding wage arrears and occupational safety standards in the informal sector. Despite existing legal frameworks, significant challenges persist in ensuring fair labour practices for workers in Ethiopia’s informal economy. Enhanced compliance monitoring mechanisms and targeted training programmes for enforcement agencies are recommended to address identified issues effectively.