Labour and Employment

The statutory sources of labour and employment law in Tanzania are divided into principal legislation and subsidiary legislation

The principal legislation includes:

• the Employment and Labour Relations Act 2004;
• the Labour Institutions Act;
• the Constitution of Tanzania;
• the Non-citizens Employment Regulations Act;
• the Workers Compensation Act; and
• the Occupational Safety Act.

The subsidiary legislation includes:

• the Employment and Labour Relations (Code of Good Practice) Rules (Government Notice 42/2007);
• the Employment and Labour Relations General Regulations (Government Notice 47/2017);
• the Labour Institutions (Mediation and Arbitration) Rules (Government Notice 64/2007);
• the Labour Institutions General Regulations (Government Notice 45/2017);
• the Labour Institutions (Mediation and Arbitration Guidelines) Rules (Government Notice 67/2007);
• the Labour Institutions and Code of Good Conduct for Mediation and Arbitration Rules (Government Notice 66/2007);
• the Labour Court Rules (Government Notice 106/2007); and
• the Wages and Terms of Employment Order 2022.

Yes, there is a contractual system that operates in parallel to the statutory sources.

Employers issue contracts to employees to reflect the terms of employment. Those terms must align with the standards stipulated under the statutes.

Yes, employment contracts are commonly used at all levels.

There are various types of employment contracts, as follows:

• fixed-term contracts;
• permanent contracts; and
• contracts for specific tasks.

The most common types are fixed-term contracts and permanent contracts.

The employer’s legal team will prepare the employment contracts, which will reflect terms that are in alignment with the employer’s policies and which will then be offered to employees for signature. Employees are free to voice concerns over those terms, but the employer is free to acknowledge or dismiss them. The employee will then be required either to accept the contractual terms as is or to decline to sign them, in which case a contractual relationship will not exist.

The Employment and Labour Relations Act specifically states that a contract with an employee must be executed in writing, regardless of whether the contract provides that the employee will work within or outside Tanzania

Employers must ensure that the following information is provided to employees in writing upon the commencement of employment:

• the place of recruitment;
• the job description;
• the date of commencement of employment;
• the form and duration of the contract;
• the place of work;
• the hours of work;
• the remuneration and the method for its calculation; and
• details of any benefits.

This information can also be included in a written contract of employment.

There are two types of parental leave at all levels:

• maternity leave; and
• paternity leave.

Employees are entitled to 84 days’ paid maternity leave, which must be taken at any time within four weeks of the expected date of birth.

If an employee gives birth to more than one child at the same time, she is entitled to 100 days’ paid maternity leave.

An employee on maternity leave is entitled to all benefits as per her employment contract. The leave is to be taken on full pay.

An employer is obliged to grant paid leave for four terms of maternity leave to an employee.

An employee is entitled to an additional 84 days’ paid leave in the event that the child dies within a year of birth.

Female employees are further allowed up to two hours during the workday for the purpose of breastfeeding.

A male employee is entitled to up to three days of paid paternity leave if the leave is taken within seven days of the birth of his child.

Yes, trade unions are recognised in Tanzania. They have the following rights:

• Once registered, they become bodies corporate with perpetual succession.
• They have the capacity to:
• • sue and be sued;
  • enter into agreements; and
  • hold purchase or otherwise dispose of movable and immovable property.
• They have the power to:
• • act as a bargaining unit for members; and
  • enter into collective bargaining agreements.
• They have the power to call for strikes and protests.

In 2022, Tanzania enacted the Data Protection Act, which requires employers that collect personal data, among other things, to:

• ensure that the data is used only for the purpose for which it was collected; and
• use the data in a manner that protects the identity of the data subject.

Contingent worker arrangements are not specifically regulated. The Labour Institutions Act includes a presumption that every person who works or renders services to another is presumed to be an employee until the contrary is proved. The law goes further and lists tests that can be applied in order to determine whether someone is a contingent worker or an actual employee. These include:

• the level of control that the employer has over the manner in which the person works;
• the hours of work;
• whether the employer provides the worker with tools for work;
• whether the worker has worked for a total of 45 hours per month for the same employer;
• whether the worker is economically dependent on the employer; and
• whether the worker works exclusively for one entity or person.

Yes, the Minimum Wage Act and the National Minimum Wage Order 2022 provide for minimum wages for different industries.

The Employment and Labour Relations Act provides for overtime. An employer must pay overtime at a rate of:

• one and a half times the employee’s basic wage; and
• for overtime on public holidays, twice the employee’s basic wage.

Employees are entitled to 28 days’ paid annual leave each year.

Employees are entitled to 126 days’ sick leave in a leave cycle of three years.

The first 63 days of sick leave will be paid leave while the remaining 63 will be unpaid leave.

The Public Service Retirement Benefits Act, CAP. 371 R.E. 2015 provides for retirement age. The statutory retirement age is 60, with voluntary retirement from the age of 55.

The Employment and Labour Relations Act forbids:

• discrimination against employees in relation to:
• • colour;
  • religion;
  • nationality;
  • tribe;
  • national extraction;
  • social origin;
  • political opinion;
  • sex;
  • gender;
  • pregnancy;
  • marital status or family responsibility;
  • disability;
  • HIV/AIDS status; and
  • age or station in life; and
• harassment of employees.

Tanzanian laws are general and state only that it is unlawful to discriminate in terms of the criteria outlined in question 4.1.

Employers must observe the law on discrimination. The common practice is for employers to have detailed policies in place that protect employees against discrimination.

A discrimination claim is processed through the filing of a complaint with the Commission for Mediation and Arbitration.

The Tanzanian Employment and Labour Relations Act provides for a process of mediation and compulsory arbitration where a dispute is referred to the Commission for Mediation and Arbitration

The remedies set out under the Employment and Labour Relations Act are remedies for unfair termination.

Where an employee alleges discrimination but is not terminated, there is an option to refer the dispute to the Commission for Mediation and Arbitration, where the parties can seek to reach an amicable agreement on how to remedy the alleged discrimination.

If an employee resigns due to alleged discrimination, he or she can file a complaint for unfair termination alleging that he or she was constructively terminated because the employer’s discriminatory actions made continued employment intolerable.

Harassment, victimisation and bullying are all regarded as forms of discrimination and the remedies are as outlined in question 4.5.

For a termination to be fair:

• there must be a valid reason for the termination; and
• the employer must follow the correct procedure before terminating the employee.

A termination may be deemed unfair where there was a valid reason for the termination but the proper procedure was not followed.

The Employment and Labour Relations Act requires that:

• seven days’ notice be given if the employee has worked for one month or less;
• four days’ notice be given if the employee is employed on a day-to-day basis; and
• 28 days’ notice be given if the employee:
• • is employed on a monthly basis; and
  • has worked for the employer for longer than one month.
    

When arguing unfair dismissal, an employee must show that the employer:

• failed to follow the procedure for termination; and/or
• did not have fair reason to terminate the contract of employment.

Employees can hire representatives and call witnesses to tender documents to support their claims.

An employee will be entitled to statutory severance pay if:

• he or she has must have completed 12 months’ continuous service with the employer;
• the employer has terminated the employment on grounds other than misconduct, capacity or operational requirements;
• the employee has not reached retirement age; and
• the employee’s contract of employment has not expired.

Employment-related complaints are filed with the Commission for Mediation and Arbitration.

The process involves mediation as a first stage and, should that fail, compulsory arbitration as a second stage, also before the Commission for Mediation and Arbitration.

Complaints for unfair termination must be filed within 30 days of the date of termination of the employment contract.

All other complaints must be filed within 60 days of the date on which they arise.

The procedure involves mediation as a first stage; if the parties cannot reach a settlement during mediation, arbitration will then be conducted.

The Tanzanian labour law regime is seen by many as pro employee. It leans more towards protecting the rights of employees than it does those of employers. However, some aspects of the regime require further development and expansion. One such area is that of the rights of probationary employees. Reforms are needed in this area to strengthen the rights of employees who have remained on probation for more than 12 months.

Employers and employees should:

• be aware of the law and of the various mandatory requirements of both employers and employees before terminating a contract of employment; and
• keep abreast of developments and changes introduced by both statute and case law.