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.
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.
A contract with an employee shall be of the following types:
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.
There is no explicit provision in the Employment and Labor 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.
‘Termination of employment’ includes:
A termination of employment by an employer is unfair if the employer fails to prove:
It is not considered to be a fair reason to terminate the employment of an employee:
An employee with less than 6 months’ service is not entitled to paid leave under the provisions of the Employment and Labor Relations Act 2004.
An employee employed on a seasonal basis is entitled to paid leave.
An employee, with less than 6 months’ service but who has worked more than once in a year for the same employer, is entitled to paid leave if the total period worked for that employer exceeds 6 months in that year.
An employer shall grant an employee at least 28 consecutive days’ leave in respect of each leave cycle, and such leave must be inclusive of any public holiday that may fall within the period of leave.
Sick Leave: An employee is entitled to sick leave for at least 126 days in any leave cycle.
The sick leave referred to shall be calculated as follows:
An employer shall not be required to pay an employee for sick leave if:
Maternity Leave: An employee must give notice to the employer of her intention to take maternity leave at least 3 months before the expected date of birth and such notice must be supported by a medical certificate.
An employee may commence maternity leave:
No employee shall work within 6 weeks of the birth of her child, unless a medical practitioner certifies that she is fit to do so and she may resume employment on the same terms and conditions of employment at the end of her maternity leave.
An employee shall be entitled, within any leave cycle, to at least:
An employer is only obliged to grant paid leave for 4 terms of maternity leave to an employee.
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.