TerraLex Cross-Border Guide to Cross-Border Labor & Employment Guidance

In Tanzania the core labour rights, basic employment standards, and other related employment aspects are regulated by the Employment and Labour Relations Act (ELRA), Labour Institutions Act (LIA), and the Employment and Labour Relations Act (ELRA) Code. In 2017, the government enacted new labour regulations to govern, among others, employment standards. Such regulations are known as The Employment and Labour Relations (General) Regulation. All these laws govern overall conduct and relationships between the employer and employees.

In Tanzania, labour law recognizes three types of contracts under which you can be employed, including contract for an unspecified period of time, contract for specified period, and contract for a specific task.

In Tanzania, labour and immigration regulations permit employers and foreign investors to recruit up to five expatriates when these skills are unavailable locally. The 2015 Non-Citizens (Employment Regulation) Act requires employers to submit “succession plans” for their foreign employees detailing how knowledge and skills would be transferred to local employees. Non-citizens may be granted work permits for a period of two years which may be renewed up to a total validity period of five years.

In Tanzania, there are implied terms in the employment contracts. Such terms include parties’ obligations to always ensure that all requirements under the labour law are met, to subject themselves to the employment contract and collective bargaining agreement, and to have mutual respect and act in good faith with each other. Other implied terms include the underlying basic rights under the constitution as well as the anti-discriminatory rights.

Employers need to observe all terms and conditions from the moment the employee has signed the contract to the time of termination. This includes the provision of minimum wage, maximum working hours (per day and week, including or excluding overtime hours), etc.

Mainland Tanzania’s minimum wage is set by categories covering twelve employment sectors. The minimum wage ranges from Tanzania Shillings 100,000 (US$45) per month for agricultural labourers to Tanzanian Shillings 400,000 (US$180) per month for labourers employed in the mineral sector (companies with mining and prospecting license).

Collective bargaining agreements are included under Part VI of the Employment and Labour Relations Act, 2004 and ELRA (Code of Good Practice) Rules, 2007. Rule 55 of the ELRA (Code of Good Practice) Rules, 2007, spells out bargaining matters to include wages, terms, and conditions of employment and allowances; matters related to policy and practices such as recruitment, appointment, transfer, and suspension; health issues/benefits; training, discipline, and termination of employment; matters related to relationships such as organizational rights, negotiation, and dispute procedures; grievance procedures; and any other matter agreed by parties.

Section 44 of the Employment and Labour Relations Act, 2004, provides for the following terminal benefits: any remuneration for the work done before termination; any annual leave pay due to an employee for leave that the employee has not taken; any annual leave pay accrued during any incomplete leave circle; any notice pay due; any severance pays due if an employee qualifies for this; any transport allowance that may be due; and certificate of service. Such benefits are not automatically granted. Some are granted depending on various circumstances such as grounds of termination, type of employment contract, the length of service to your employer, etc.

The employer is also required to contribute to not less than 10% of employees’ gross salary to pension fund.

The workers in Tanzania can represent themselves or through trade unions.

Under the Employment and Labour Relations Act, 2004, the employer is prohibited from employing an employee to work for more than twelve hours inclusive of overtime in any day. The maximum number of ordinary days or hours that an employee may be permitted or required to work are six days in any week, 45 hours in any week, and nine hours in any day. An employer shall not require or permit an employee to work overtime except in accordance with an agreement and more than 50 overtime hours in any four-week circle.

However, the agreement may not require an employee to work more than the twelve-hour limit in any day. An employer is required to pay an employee at least one and one and one-half times the employee’s basic wage for any overtime worked.

Generally, the Tanzania labour laws do not allow dismissal of employees. The term used to end an employment contract is termination. All workers are protected against dismissal from employment. In termination, the employer needs to follow fair procedures set forth under the law.

In Tanzania, the law provides for termination based on operational requirements (retrenchment). Retrenchment is provided for under Section 38 of Employment and Labour Relations Act No. 6 of 2004 to be read together with Rules 23, 24 & 25 of ELRA (Code of Good Practice) G.N. 42/2007. The law in Tanzania allows an employer to retrench on the following grounds: financial constraints, technological changes, restructuring of business, mergers and acquisition, and closing of business.

In the event an employer decides to retrench an employee, employees, and/or a group of employees, the employer is required to give notice of any intention to retrench as soon as it is contemplated, disclose all relevant information on the intended retrenchment for the purpose of proper consultation, and consult prior to retrenchment.

Employees do not automatically get transferred to the buyer in a business sale, especially those of assets to which the employees operate on. There should be an agreement to that effect and employees are at liberty to agree or refuse such transfer. If the employees refuse to move over, the process should be done via retrenchment of the existing employees and recruitment of new employees by the new business. Sometimes the employees may agree to work for the new business but after a process of retrenchment with the old employer.

In case the sale is just of shares, the company, by law, remains in existence, and hence there will not be a need for employees to transfer.

Employment disputes go through mediation and arbitration before advancing to the court. The first stage in resolving the labour disputes is mediation, failure of which the referring party can either give notice to commence a strike or lockout where the matter is a dispute of interest; or refer the matter to arbitration or to the high court where the matter is a complaint/dispute of right.

N/A

The Employment and Labour Relations Act, 2004, under Section 5 prohibits employment of children under the age of 14 years. A child of 14 years may only be employed to do light work which is not likely to be harmful to the child’s health and development and does not prejudice a child’s attendance at school.

Such law under the same section prohibits children under the age of 18 years to work in mines, factories, as crew on a ship, or in any other work site, including non-formal settings and agriculture, where work conditions may be considered hazardous by the Minister of Labour.

The Constitution of the United Republic of Tanzania under Articles 13 and 23 and Employment and Labour Relations Act of 2004 under Section 7 protects employees against discrimination. The protection against discrimination is on the basis of race, colour, nationality, tribe or place of origin, national extraction, gender, sex, pregnancy, religion, ethnicity, marital and social status or family responsibility, HIV/AIDS status, age, station of life, political opinion or religion, disability, etc. Such grounds for discrimination are listed under Section 7 (4) of the ELRA, 2004.

All forms of discrimination as described under ELRA, 2004, are unlawful and if proved guilty, one might be imposed with fines, imprisonment, or both.

In enforcing their rights against discrimination, employees should first exhaust available remedies at the work place, according to the internal policies of the employer. If dissatisfied/aggrieved with the outcome of the internal grievances procedures, the aggrieved employee may initiate a labour dispute at the Commission for Mediation and Arbitration (CMA). If the discrimination is of the criminal nature, an employee should report the incident to the local police.

Outsourcing is common in Tanzania. In such contracts companies are guided by the Law of Contract Act Cap. 345.

These are protected by the labour laws (i.e. Employment and Labour Relations Act, 2004, ELRA (Code of Good Practice) Rules, 2007).