Hilton Attorneys

1

GENERAL PRINCIPLES

Forums For Adjudicating Employment Disputes

Labour disputes handling mechanism starts with the Commission for Mediation and Arbitration (CMA). A party aggrieved by the Award of CMA may seek revision before the High Court of Tanzania (Labour Division) and further Appeals or revision before the Court of Appeal of Tanzania. The High Court has powers to entertain appeals from administrative bodies such as the Registrar of trade unions or from the decisions of the Honourable Minister responsible for labour. Apart from the CMA, Labour Court and Court of Appeal, there is the District Court and Resident Magistrate’s Court with power to handle contemptuous proceedings for any contempt committed before the Commission for Mediation and Arbitration.


The Main Sources Of Employment Law

Tanzania’s sources of law are based on the following main sources;

    1. Relevant Principal Legislation;
        1. Constitution of the United Republic of Tanzania of 1977
        2. The Employment and Labour Relations Act, Act No. 6 of 2004
        3. The Labour Institutions Act, Act No. 7 of 2004
        4. The Occupational Health and safety Act, Act No. 5 of 2003.
        5. The Workers’ Compensation Act (Cap. 263 R.E 2002)
        6. The Public service Act, Act No. 8 of 2002
        7. The Law of Contract Act, Cap. 342
    2. Subsidiary legislations:
        1. The Employment and Labour Relations (Code of Good Practice) Rules, 2007 [Government Notice No. 42 of 2007]
        2. The Labour Institutions (Mediation and Arbitration) Rules, 2007 [Government Notice No. 64 of 2007]
        3. The Employment and Labour Relations (Forms) Rules, 2007 [Government Notice 65 of 2007]
        4. The Labour Institutions and Code of Conduct for Mediators and Arbitrators Rules 2007, [Government Notice No. 66 of 2007]
        5. The Labour Institutions (Mediation and Arbitration Guidelines) Rules, 2007 [Government Notice No. 67 of 2007)
        6. The Public Service Regulations, 2003 (Government Notice No. 168 of 2003)
        7. The Public Service Scheme, Government Notice No. 169 of 2003
        8. Labour Institutions Wage Order, Government Notice No. 196 of 2013.
        9. The Employment and Labour Relations (General) Regulations, Government Notice No. 47 of 2017.
    3. Case Law

      4. From precedents made previous decisions of higher courts that is, the Court of Appeal and the High Court.

    4. International Treaties and Conventions
        1. The International Labour Organization, Social Security Convention No. 102/1952.
        2. Forced Labour Convention, 1930 (No. 29)
        3. Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87)
        4. Rights to Organize and Collective Bargaining Convention, 1949 (No. 98)
        5. Equal Renumeration Convention, 1951 (No. 100)
        6. Discrimination (Employment and Occupation), 1958 (No.111)
        7. Minimum Age convention, 1973 (No. 138)

National Law And Employees Working For Foreign Companies

There is no specific law or regulation in this regard. The same law applies.


National Law And Employees Of National Companies Working In Another Jurisdiction

There is no specific law or regulation in this regard.


Data Protection and Privacy

There is no comprehensive law covering data protection issues in Tanzania. What is available are scattered pieces of legislation that govern data protection issues in different sectors forexample banking and telecommunication. Realising that there is need to address issues concerning data for example how data is collected, handled and processed, Tanzania is initiating a process of enacting a comprehensive piece of legislation that will cover address all the issues concerning data protection and privacy.

Some relevant sectoral pieces of legislations that offer data protection and privacy in Tanzania are:

  • The Electronic and Postal Communications Act, Act No. 3 of 2010 ('EPOCA');
  • The Banking and Financial Institutions Act, 2006 ('the Banking and Financial Institutions Act'); and
  • The Cybercrimes Act, Act No. 14 of 2015 ('the Cybercrimes Act'

2

HIRING THE EMPLOYEE

Legal Requirements As To The Form Of Agreement

Mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity and legality.

Contract may be oral or written.


Mandatory Requirements
  • Trial Period

    • There is no explicit provision in the Employment and Labour Relations Act 2004 about probation period. However, this act implicitly requires a probationary period of 6 months by saying that a worker with less than 6 months of employment may not bring an unfair termination claim against the employer. Section 35 of Employment and Labour Relations Act 2004 provides for this.

  • Hours Of Work

    • The maximum ordinary working hours that an employee is allowed under the law to work is forty-five (45) hours per week that is a maximum of nine (9) hours a day. The nine hours are exclusive of the one-hour daily lunch break. The lunch break is to be provided after five hours continuous working time. Lunch break is unpaid time and is the employee's own time because they are not paid for lunch breaks. Any hour (s) in excess of the forty-five hours must be compensated as overtime hours. It is also prohibited for an employee to work more than twelve hours in a day.

    An employee is permitted to work six days in a week and the seventh day must be a resting day.

  • Special Rules For Part-time Work

    • There are no special rules for part time workers in Tanzania

  • Earnings

    • Every person without discrimination of any kind is entitled to remuneration commensurate with work and all persons working according to their ability shall be remunerated according to the measure and qualification for the work. Every person is entitled to just remuneration. (Article 22 of the Constitution). The wage rates are determined by Wage Boards constituted in accordance with Labour Institutions Order 2007. The minimum wage rates have been fixed under the Wages Order 2013.

    Minimum wage is fixed according to sectors as follows:

      1. Health Services Tanzanian shillings 80,000/-
      2. Agriculture Tanzanian shillings 70,000/-
      3. Commerce, Industrial and Trading only one wage, Tanzanian shillings 80,000/-
      4. Transport and Communications has 4 types of wages as follows:
          1. Aviation Services Tanzanian shillings 350,000/-
          2. Clearing and Forwarding Tanzanian shillings 230,000/-
          3. Telecommunication Tanzanian shillings 300,000/-
          4. Inland Transport Tanzanian shillings 150,000/-
      5. Mining Sector also has 4 types of wages:
          1. Mining Licences/Prospecting Licences Tanzanian shillings 350,000/-
          2. Primary Mining Licences/Prospecting Licences Tanzanian shillings 150,000/-
          3. Dealers Licences/Lapidary Tanzanian shillings 250,000/-
          4. Brokers Licences Tanzanian shillings 150,000/-
      6. Marine and Fishing Tanzanian shillings 165,000
      7. Domestic Services including Hotels has 6 types of wages:
          1. Domestic servants employed by Diplomats and Potential Businessmen Tanzanian shillings 90,000/-
          2. Entitled Officers for domestic services provision Tanzanian shillings 80,000/-
          3. Other domestic servants Tanzanian shillings 65, 000/-
          4. Potential and Tourist Hotels Tanzanian shillings 150,000/-
          5. Medium Hotels Tanzanian shillings 100,000/-
          6. Restaurants, Guest Houses and Bars Tanzanian shillings 80,000/-
      8. Private Security Services has 2 types of wages:
          1. International or Potential security companies Tanzanian shillings 105,000
          2. Others Tanzanian shillings 80,000

     

    While determining the minimum wage, the Wage Board takes into account all relevant factors including the cost of living, level of wages and income in the country, economic development, level of employment, the minimum subsistence level, ability of employers to carry on their businesses, operation of small, medium and micro enterprises, the remuneration and terms and conditions of employment of employees employed in the East African Community in the sector, any collective agreements providing for remuneration and terms and conditions of employment in the sector, alleviation of poverty and any other relevant matter. (Section 37 of the Labour Institutions Act, 2004).

  • Holidays/Rest Periods

    • According to Tanzanian law, employers are responsible for all paid time off for their employees. Once they have worked at a company for six months, employees are entitled to 28 days of paid annual leave and 17 government holidays. Holidays falling on a weekend day are not generally compensated. Tanzanians are also entitled to sick time and personal leave. As long as a worker can prove that they're no longer able to work, they can receive up to 126 days of paid sick time in an 18-month period in addition to the 28 days of paid annual leave.

  • Minimum/Maximum Age

    • Generally, the law prohibits employment of a child under the age of fourteen years. It further prohibits employment of a child under the age of eighteen years in a mine, factory, as a craw in a ship, or any other work site including non-formal settings and agriculture where work conditions may be considered hazardous by the Minister. The Constitution and The Employment and Labour Relations Act provides for minimum age.

    However, the law permits employment of a child of fourteen years in light work which is not likely to be harmful to the child’s health and development and does not prejudice the child’s attendance at school, vocational orientation or a training programme. The general welfare of the child must not be prejudiced.

    Maximum age of an employee in Tanzania is sixty years. The National Social Security Fund Act provides for pensionable age.

  • Illness/Disability

    • Employees are entitled to sick time and personal leave. As long as a worker can prove that they're no longer able to work, they can receive up to 126 days of sick time in an 18-month period. The Employment and Labour Relations Act provides for sickness leave.

  • Location Of Work/Mobility

    • An employer can station an employee anywhere in Tanzania; however, the employer has to move them from the point of recruitment.

  • Pension Plans

    • Before 2018, the Tanzanian pension system comprised five mandatory defined benefit schemes operated under the pay-as-you-go principle. These funds were Parastatal Pension Fund (PPF), Public Service Pension Fund (PSPF), Local Authority Pension Fund (LAPF), Government Employees Provident Fund (GEPF) and National Security Social Fund (NSSF). In 2018, the parliament passed Act No. 2 of 2018 which consolidated the social security schemes by merging four public funds, PPF, PSPF, LAPF and GEPF, into one scheme which is the Public Service Social Security Fund (PSSSF). The main purpose of PSSSF is to collect contributions and make payments of terminal benefits to employees of public service. NSSF remained for private sector employees.

    For Private sector employees, the governing Act is The National Social Security Act (R.E. 2008).

    Retirement Pension shall be payable to an insured person who has attained pensionable age; In respect of whom not less than 180 monthly contributions have been paid and who has attained the age of 55 or above but before attaining pensionable age.

    Benefit payable is commuted pension (Initial Lump sum) paid immediately before starting pension which is equal to 25% of calculated annual pension times 12.5; Old age special lump sum for non qualifying members i.e total contributions plus interest. Minimum Pension is 40% of the lowest Sartorial Statutory Minimum Wage while maximum Pension is 72.5% of the Annual Pensionable Emoluments.

  • Parental Rights (Pregnancy/ Maternity/ Paternity/ Adoption)

    • Current labour laws in Tanzania have no specific and clear provision for working parents. There are, however, provisions for pregnant and breastfeeding working mothers.

    The law prohibits pregnant women to work at night two months before the expected date of confinement or much earlier if the employee produces a medical certificate to confirm that she is no longer fit to perform night work. There is a very clear provision of the law requiring an employer to transfer any employee working night shift who becomes certified as unfit to do night work.

    The law has no clear provision on time off to attend pre-natal and post-natal clinics. The practice has usually been that any pregnant or nursing mother wanting to attend clinic, or needing to seek medical treatment, has asked for some days from her sick leave days or annual leave. However, some companies have a collective bargaining agreement or workplace policy which provides for some days off for pre- and post-natal clinics.

    A nursing mother is under the law entitled to two hours per day to feed her/breastfeed her child. The law does not say at what time of the day they should be utilized. It is therefore up to the employer and the breastfeeding employee to discuss and agree. Neither does the law provide for how long this right should proceed; it is therefore left up to the discretion of the employer and employee to agree.

    In a leave cycle (period of 36 months) an employee is entitled to 84 days paid maternity leave if she gives birth to a single child or 100 days paid maternity leave if the employee gives birth to more than one child. These days include rest days and public holidays. However, if due to any birth/delivery complications the female employee requires extra days she can discuss this with the employer concerned, about using sick leave days or some days from her annual leave, or getting extra unpaid leave days.

    The duration of paternity leave is three days in a leave cycle which is thirty-six months. The three days are the total number of days irrespective of the number of children that are born within the leave cycle.

  • Compulsory Terms

    • Contracts of employment with an employee shall contain the following particulars in writing under section 15(2) of the Employment and Labour Relation Act;

      1. name, age, permanent address and sex of the employee
      2. place of recruitment
      3. job description
      4. date of commencement
      5. form and duration of the contract
      6. place of work
      7. hours of work
      8. remuneration, the method of its calculation and details of any benefits or payments in kind.

     

    Section 15(3) of the Employment and Labour Relation Act the Law clearly stated that if an employee does not understand the written particulars the employer shall ensure that they are explained to the employee in a manner that the employee understands.

    If an employer fails to produce a written contract or the written particulars the burden of proving or disproving an alleged term of employment shall be on the employer.

  • Non-Compulsory Terms

    • All non other terms as long as they are not against any specifically provided law are permissible and they can be stated in a contract of employment.


Types Of Agreement

A contract for an unspecified period of time;

A contract for a specified period of time for professionals and managerial cadre,

A contract for a specific task.


Secrecy/Confidentiality

An employee shall not be obliged to disclose information that:

    1. is legally privileged;
    2. the employer cannot disclose without contravening a law or an order of court;
    3. is confidential and, if disclosed, may cause substantial harm to an employee or the employer;
    4. is private personal information relating to an employee without that employee’s consent.

Ownership of Inventions/Other Intellectual Property (IP) Rights

This is guided by laws on Intellectual property


Pre-Employment Considerations

Every employer is at liberty to have a good recruitment and appointment policy indicating that the organization is an equal opportunity organization. That is, recruitment and appointment are made not only on merits but the organization administers all personnel actions without regard to race, age, color, tribe, religion, political opinion, marital status, gender, disability etc.


Hiring Non-Nationals

Realizing the expanding need of employing personnel from abroad, in March 2015 the Tanzanian Parliament passed the Non-Citizens (Employment Regulations) Act, The Act regulates the recruitment of non-citizens in Tanzania, complimenting the Immigration Act No. 7 of 1995 which addresses elements of labour influx. The Act, therefore, gives the Labour Minister (through the Labour Commissioner) wide powers in all matters relating to employment of non-citizens in Tanzania Mainland.

The key issues stemming up from the Act:

    1. The Act empowers Minister of Labour to publish in the Government Gazette, specific fields where non-citizens can be employed, implying that the work permits for non-citizens shall be issued exclusively for employment in the Gazetted fields.
    2. Under the Act, the Labour Commissioner is the sole authority responsible for issuing work permit. However, the Commissioner may delegate such powers to any person or public institution.
    3. Employers of non-citizens in Tanzania, according to the law, will be required to prepare a succession plan, setting out mechanisms for transferring expertise from the non-citizen to local workers. Further, the law requires an employer to establish an effective training program aimed at building capacity to local employees who should be able to take over upon expiry of non-citizens’ time in Tanzania.
    4. Just like the Immigration Act, it illegalizes the employment of non-citizens in any occupation without a work permit from the Commissioner. Hence, it is an offence for a non-citizen to engage in any occupation or a person to employ a non-citizen who does not have a work permit.
    5. The Act seeks to limit the original duration of the permit to only two years but under the Immigrations Act, the original duration may be two or three years. Like in the current law, this period can be renewed but only to an aggregate limit of five years.
    6. The Act also imposes a fine of up to ten (10) Million Tanzanian Shillings or 12 months imprisonment or to both a fine and imprisonment if a person contravenes any provision of the Act and commits offences articulated in the Immigrations Act, 1995. It should be noted that, the offences provided under the Act are similar to the ones in the Immigrations Act, 1995 except that the latter’s list of offences is more extensive from the former.

Hiring Specified Categories Of Individuals

An employer can hire a specified category of individuals as they wish as long as there is no discrimination of any kind to other employees.


Outsourcing And/Or Sub-Contracting/Temporary Agency Work

It is permissible under the laws to outsource/sub-contract or having temporary agency work and it is governed by the law of contract.

3

MAINTAINING THE EMPLOYEE RELATIONSHIP

Changes To The Contract

Both the employer and employee are at liberty to amend the contract if they agree. The provisions of the Law of Contract Act will guide this aspect.


Change In Ownership Of The Business

In case there is change in ownership of business, the new employer can decide to take the new employees on board with the existing contract or new contract. However, if the new owner is not interested, retrenchment process can be done as it is provided in Employment and Labour Relations Act.


Social Security Contributions

Both an Employee and Employer contribute 10 per cent of basic salary to the employee’s social security account. The employee can retrieve this on termination of contract.


Accidents At Work

Promotion of Occupational Health and Safety encompasses provision and maintenance at the highest degree of safe and healthy working conditions and environment. This is prerequisite for the facilitation of optimal social, mental and physical wellbeing of workers at workplaces as well as safety of property. The enforcement of occupational health and safety standards is currently undertaken by Occupational Safety and Health Authority.


Discipline And Grievance

The Employment and Labour Relations Act requires an employer to put in place policies and procedures of handling grievances before they develop into major problems. The purpose of grievance policy and procedure is to try to formalize mechanism of pre-emptying potential problem that may be difficult to solve later. Furthermore, employer should ensure they use a proper disciplinary procedure which intends to regulate standard of conduct within the organisation. The disciplinary procedure should entail what conducts of an employee are unacceptable or may result to the employee being incapable of rendering satisfactory services. Employer needs to ensure that employees are aware of employment rules and expected reasonable standard behaviors in the organisation.


Harassment/Discrimination/Equal pay

Employment and Labor Relations Act, 2004 prohibits discrimination, direct or indirect discrimination against a worker in any employment policy on the grounds of race, nationality, birth, gender, pregnancy, marital status, or marital status. man’s, political orientation, disability or AIDS, age or living life. Section 7 (4) of the Employment and Labour Relations Act, 2004 prohibits discrimination against an employee in any employment policy or practice. It will not be regarded as prejudice where effective measures to support employment for a forgotten group or that have long been discriminated against in the labor market, such as favoring, allocating or choosing any person for this purpose, or employing employees in accordance with the Labor Employment Act 1999. Anyone who will break in these parts is wrong. If he is to be judged, such a person will be responsible for paying a fine of not less than five million Tanzania shillings.

Equal pay

According to the Constitution of Tanzania, all persons are born equal and equal to the law. The Constitution also recognizes the right to work with equal income rights. All who work according to their ability are paid according to the standard and labor force. In addition, the Constitution recognizes the right to work and the right to a reasonable payment.

Labor Employment and Labor Relations Act 2004 also require every employer to ensure that the men and women he hired receive the same payment for the same work as the same.

Harassment

Discrimination against a worker in any employment policy on the grounds of race, nationality, birth, gender, pregnancy, marital status, or marital status, political orientation, disability or AIDS, age or living life. Anyone who will break in these parts is wrong. If he is to be judged, such a person will be responsible for paying a fine of not less than five million Tanzania shillings

Sexual harassment at workplace is discriminatory and prohibited by law and is part of the Penalty Code. Convicted of doing so, shall be imprisoned for up to five years, or fine not exceeding two hundred shillings or all together, and may also be required to pay compensation to the victim as ordered by the court.

Sexual acts that will be caused by words or actions by the person in authority in the workplace or any other place, will have committed the offense of sexual harassment. There is no charge for an offense under this section to be initiated or to continue if the complaint is made by the complainant at any time after sixty days since the incident occurred.


Compulsory Training Obligations

It is not clearly stated in the laws as to what should be done regarding trainings. Normally, employers find a way to train employees so that they meet their work standards.


Offsetting Earnings

An employer shall not make any deduction to the employee’s salary unless it is permitted under a written law or the employee agrees to it. Section 28 (1) and (2) of the Employment and Labour Relations Act provides for the same.


Payments For Maternity And Disability Leave

N/A


Compulsory Insurance

Compulsory insurance in Tanzania is not provided for in the laws


Absence For Military Or Public Service Duties

N/A


Works Councils or Trade Unions

It is important for an employer to let the employee join a Trade Union (“TU”). Organisation rights assist the Union in building up a presence in the workplace and thereby lay the foundations of a collective bargaining relationship with the employer. Without TU, employees will be unable to negotiate with the employer collectively. Thus, allowing employees to organize themselves by joining TU creates a healthy situation at the workplace. Therefore, employers should support TU as a positive move that bring about harmonious working relationship that can pre-empty grievances, dispute, strike and lock out etc.


Employees’ Right To Strike

The general rule is that every employee has a right to strike in respect of a dispute of interest; but the same must be called by a trade union representing those employees. However, there are some exceptions where an employee cannot go on strike:

If an employee is engaged in an essential service and there is no collective agreement providing for minimum services during a strike. Essential services have been listed under the law as services such as Water and Sanitation, Electricity, Health Services and associated Laboratory Services, Fire Fighting Services, Air Traffic Control and Civil Aviation Telecommunications, and any transport services required for the provision of essential services

  • If an employee is engaged in a minimum service.
  • If an employee is bound by an agreement which requires the dispute to be referred to arbitration.
  • If an employee is bound by a collective agreement or an arbitration award regulating the issue in dispute.
  • If that person is a magistrate, prosecutor, or other court personnel.
  • If the issue at hand is not a dispute of interest but rather a complaint.

Employees On Strike

Employees on a strike are not to be discriminated by the employer.


Employers’ Responsibility For Actions Of Their Employees

Employers are generally not responsible for actions of their employees outside work hours and work environment.

4

FIRING THE EMPLOYEE

Procedures For Terminating the Agreement

The employer has to ensure that the procedure is fair substantively (the reasons for termination) and procedurally (the manner and method of termination) to follow before termination is executed. For a termination to be fair, both elements of substantive and procedural fairness should be met. The employer should therefore know that procedural and substantive fairness are independent requirements for a fair termination.

  • Automatic Termination: A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer.
  • Termination of employment by the employee/Resignation: Termination of employment by an employer: An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination.

Instant Dismissal

Regardless of the seriousness of the offence committed by yourself and although your employer has reliable evidence, it is mandatory to follow the procedures outlined under the law. Failure to follow the procedure will amount to summary dismissal, meaning an employee is terminated without being availed of an opportunity to defend herself/himself before a fair disciplinary committee. Unless an employee has confessed to the commission of the offence then it is mandatory to hold a disciplinary hearing.

With summary dismissal, an employee does not have a chance to present their case before termination. In labour laws this can amount to unfair termination.

There are several consequences of unfair termination.

If the Commission for Mediation or Arbitration or Labour Court rule out that a termination is unfair it may order the employer to:

  • Reinstate the employee from the day he/she was terminated without loss of remuneration. Meaning the employee will have to be remunerated as if he/she has been employed for the whole period that he/she was absent due to termination. When an Order for reinstatement is made but the employer does not want to reinstate or re-engage the employee, the employer shall pay compensation of twelve months wages in addition to wages due and other benefits from the date of unfair termination to date of final payment.
  • Re-engage the employee on any terms that the Arbitrator or Court may decide. When an order for re-engagement is made but the employer does not want to re-engage the employee, the employer shall pay compensation of twelve months wages in addition to wages due and other benefits from the date of unfair termination to date of final payment.
  • Compensate the employee with not less than twelve months’ remuneration. An order for compensation shall be in addition to and not a substitute for, any other amount to which the employee may be entitled in terms of any law or agreement.

Employee's Resignation

This is permissible and it happens when an employee due to material breach of the contract by the employer decides to resign from her employment.


Termination On Notice

Notice of Termination is notification from either party in the employment contract that one party in the contract is intending to terminate the contract of employment at a given time. Notice period differs in the following way:

If notice of termination is given in the first month of employment the period of notice shall not be less than seven days. The notice period is the period of notice upon which the employee is supposed to work from the time the notice is tendered to the time when the termination becomes effective.

If the employee is employed on a daily or weekly basis the notice period shall be four days and if the employee is employed on a monthly basis the notice period shall be 28 days. A contract of employment can provide for a longer notice but the agreed notice period shall be of equal duration for both employer and the employee. The Notice of Termination shall state the reason for termination and the date on which the notice is given.


Termination By Reason Of The Employee's Age

N/A


Automatic Termination In Cases Of Force Majeure

In case of force majeure, a contract can be automatically terminated.


Collective Dismissals

N/A


Termination By Parties’ Agreement

It is allowed when the employer and employee agree to bring a contract of employment to an end in accordance with an agreement. For example, if there is a contract for a period of one year and the agreed period expires then the contract will obviously come to an end.


Directors Or Other Senior Officers

Directors and senior officers are not catered for differently from normal employees. The law puts an expectation on senior officers when it comes to under performance, they do not need training and they are expected to be skilful enough and not to underperform. All other laws apply to directors and senior officers just like other employees.


Special Rules For Categories Of Employee

There are no rules for categories of employees, all employees are regulated with similar rules.


Specific Rules For Companies in Financial Difficulties

Under financial difficulties, a company can wind up according to how it is regulated under the Companies’ Act, they must however carry our proper retrenchment process before winding up and employees must be paid.


Restricting Future Activities

If an employee is no longer working with an employer, the law does not restrict future activities, it is entirely at the liberty of both parties.


Whistleblower Laws

Whistleblower and Witness Protection Act caters for protection of whistleblower and witnesses in Tanzania. The Government of Tanzania adopted the Act in 2015, as an important step towards meeting the international standards, and the Act has several positive features, such as extending protection across the private and public sectors and allowing for disclosures based on a relatively broad set of grounds


Special Rules For Garden Leave

There are no special rules for garden leave in Tanzania, and it is not clearly provided in law. Once an employee is on notice period before termination, the employer is at liberty either to let the employee stay in office or to be out of office but be paid at the end of the month


Severance Payments

Severance pay means an amount at least equal to seven days basic wage for each completed year of continuous service with that employer up to a maximum of ten years. Therefore, in calculating severance pay you multiply seven days’ salary by the number of years that an employee has rendered services to an employer with a maximum of 10 years.


Special Tax Provisions And Severance Payments

The Employer must deduct and submit pay as you earn (PAYE) and Skills Development Levy to the Revenue authority in accordance with the Income Tax Act.

As per Section 38(c) (v) of the Employment and Labour Relations Act, the employer is required to pay the employee severance payment once terminated.


Allowances Payable To Employees After Termination
    1. Any remuneration for work done up to the time of termination.<
    2. Any annual leave pay due to an employee for leave that the employee hasn’t taken, and any annual leave pay which has accrued before the date of termination (that is for the days worked in the leave circle on prorate basis). This depends on how the employee’s wage is calculated: whether on hourly, weekly, or monthly basis.
    3. Ordinarily, an employer who must instantly end an employment contract is obliged to pay at least one (1) month salary to employees whose employment contracts are terminated. Should the employer issue notice of termination (in accordance with Section 41 and 38 of the Employment and Labour Relations Act) then this would not apply. It is, however, that during retrenchment employers are expected to issue a notice of retrenchment and as such if the notice is issued the employer is not subject to this payment.
    4. As per Section 38(c) (v) of the Employment and Labour Relations Act, the employer is required to pay the employee severance payment.
    5. Transportation of the employee and his personal effects to the place of recruitment, if the termination took place other than a place of recruitment of the employee as per Section 43 of the Act. Transport allowance shall be equal to at least a bus fare to the bus station nearest to the place of recruitment or as bargained between the employer and the employee at the time of employment.
    6. A retrenched employee is entitled to a certificate of service as per Section 44(2) of the Act. This is usually prescribed by the minister, but employer may prepare their own certificate of services.
    7. Additional retrenchment package includes any payment of any annual leave pay due to an employee for leave that the employee has not taken and any annual leave pay accrued during any incomplete leave cycle.

Time Limits For Claims Following Termination

Time limit for claims following termination is thirty days and it is done to the Commission of Mediation and Arbitration.

5

GENERAL

Specific Matters Which Are Important Or Unique To This Jurisdiction

There are no other specific matters unique in the jurisdiction save that our labour laws were adopted from South Africa, and some are without consideration of the nature and traditions in Tanzania, more so the laws favour the employees more. Thus, employers are always urged to be extremely careful when dealing with any employee issues.



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Susan Taryn Nelima
Hilton Attorneys
Tanzania


Dorothy Ndazi
Hilton Attorneys
Tanzania


Disclaimer:

© 2021, Hilton Attorneys. All rights reserved by Hilton Attorneys as author and the owner of the copyright in this chapter. Hilton Attorneys has granted to Multilaw non-exclusive worldwide license to use and include this chapter in this guide and to sublicense Lexis Nexis, a division of RELX Inc. and its affiliates certain rights to use and distribute this Guide.

The information in the How to Hire and Fire Guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: June 2021