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Employment in Tanzania

Employment law in Tanzania appears complex and confusing when looking from outside view although in some ways there are many similarities to other countries. Other factors that complicate matters include the differences between regions and an inconsistent approach to adherence to laws in different cities.

For these and many other reasons the following are only guidelines in the broadest sense, and professional legal services are recommended when employing in Tanzania.

Key points on employment in Tanzania

There are several key areas to be aware of within Tanzanian employment regulatory framework, especially for companies that plan to initiate a full local office and human resources department.  These challenges can be mitigated by use of a locally sourced payroll provider who is familiar with all of the local laws and rules for both local employees as well as foreign nationals.

  1. Contracts

    A contract with an employee shall be of the following types:

    • 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.

    A contract with an employee shall be in writing if the contract provides that the employee is to work outside the United Republic of Tanzania. 

    An employer shall supply an employee, when the employee commences employment, with the following particulars in writing, namely:

    (a) name, age, permanent address and sex of the employee;

    (b) place of recruitment;

    (c) job description;

    (d) date of commencement

    (e) form and duration of the contract;

    (f) place of work;

    (g) hours of work;

    (h) remuneration, the method of its calculation, and details of any benefits or payments in kind, and

    (i) any other prescribed matter.

Employee Entitlements

Information Explanation
Working on Sundays ?

Employees are allowed to work on Sunday with an additional pay.

Disclosure and Confidentiality of Personal Information ?

An employer shall not be obliged to disclose information that:

(a) is legally privileged;

(b) the employer cannot disclose without contravening a law or an order of court;

(c) is confidential and, if disclosed, may cause substantial harm to an employee or the employer;

(d) is private personal information relating to an employee without that employee’s consent.

Employee Protection and Anti-discrimination Rights ?

Every employer shall ensure that he promotes an equal opportunity in employment and strives to eliminate discrimination in any employment policy or practice.

An employer s hall register, with the Labor Commissioner, a plan to promote equal opportunity and to eliminate discrimination in the work place.

Time Off Work ?

Subject to the provisions of the Employment and Labor Relations Act (ELR2004), an employee with less than six months’ service shall not be entitled to paid leave under the provisions of this Part.

Medical Leave ?

An employee shall be entitled to sick leave for at least 126 days in any leave cycle.

Employment Termination

Information Explanation
Resignation / End of Service Payment ?

On termination of employment, an employer shall pay an employee:

  • any remuneration for work done before the termination;
  • any annual leave pay due to an employee under section 31 of the ELR2004 for leave that the employee has not taken;
  • any annual leave pay accrued during any incomplete leave cycle determined in accordance with section 31 of the ELR2004
  • any notice pay due under section 41 of the ELR2004;
  • any severance pay due under section 42 of the ELR2004;
  • any transport allowance that may be due under section 43 of the ELR2004.
Severance / Redundancy Pay ?

For the purposes of this section, ”severance pay” means an amount at least equal to 7 days’ basic wage for each completed year of continuous service with that employer up to a maximum of ten years.

Termination of Employment ?

If a contract of employment can be terminated on notice, the period of notice shall not be less than seven days, if notice is given in the first month of employment and after that 4 days, if the employee is employed on a daily or weekly basis; or 28 days, if the employee is employed on a monthly basis.

Outsourcing Employment Through a GEO Employer of Record Service

Compliance with local employment requirements is just one of the issues foreign companies face when employing staff in Tanzania. For companies which intend to employ their staff directly through their incorporated Tanzanian entity, professional legal advice is recommended. Shield GEO provides an alternative path for companies to outsource the employment of their staff in Tanzania.

As a Global Employer Organisation (GEO), Shield GEO acts as the Employer of Record and ensures the employment is compliant with host country regulations regarding employment. In addition Shield GEO will handle payroll processing, tax and immigration. Using Shield GEO is the fastest and most cost effective way to deploy local and foreign workers into Tanzania.

The Shield GEO solution is an attractive alternative where

– the company is looking to employ staff quickly

– the company doesn’t have an appropriately incorporated entity in Tanzania

– the company wants to work within a defined budget

– the company wants to limit its initial commitment in Tanzania

– the company needs help with tax, employment, immigration and payroll compliance in Tanzania

Shield GEO can contract directly with the company to employ and payroll their staff in Tanzania. Shield GEO supplies local employment contracts for the staff which ensure that local statutory requirements are met covering issues such as termination, probation periods, leave entitlements and statutory benefits.  Shield GEO is able to advise companies how to cover local employment regulations whilst still providing consistent global employment policies. Understand more about outsourced employment through Shield GEO.



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