Hire in Tanzania

Prior to hiring an employee, Tanzanian employers have the authority to carry out specific checks, encompassing the verification of identification and residency. Background checks on the prospective employee’s employment history, which may involve scrutinizing any restrictive covenants from previous employers, as well as confirming education, professional qualifications, and personal references, are also within the scope of permissible checks.

Although the Employment and Labor Relations Act of 2004 doesn’t explicitly stipulate a probationary period, its language implicitly supports the notion of a six-month probationary period. This is evident as employees with less than six months of employment are precluded from making claims of unjust termination against their employer under the statute.

In Tanzania, the standard working hours are nine hours per day and 45 hours per week, with the flexibility to work up to six days weekly. This nine-hour period excludes a lunch break. After five hours of work, employees are entitled to a one-hour break. The maximum permissible working hours are capped at 12 hours per day and 50 hours in a four-week cycle.

If an employee exceeds their regular working hours in Tanzania, they are eligible for overtime compensation at a rate of 150% of their standard salary. In cases where overtime occurs on a weekly rest day or public holiday, the employee is entitled to 200% of their regular salary for each hour worked.

Employers are required to retain employment documents, including contracts, for a period of five years after an employee’s termination.

An employer may terminate an employee for one of the following four reasons deemed to be fair:

• Misconduct
• Incapacity
• Incompatibility
• Employer operational requirements or retrenchment

In Tanzania, certain groups of employees are protected against termination, including:

• Pregnant or on maternity leave
• Trade union members or participate in lawful trade union activities
• Whistleblowers reporting unlawful or improper conduct
• Absent from work due to illness or injury (for a period not exceeding 36 months in total)
• Persons with disabilities (unless they cannot fulfill their obligations even with adequate accommodations)

If employers terminate specific groups of workers without a valid reason or proper procedure, they may be held accountable for unfair termination, leading to potential legal consequences. Upon termination, employers are obligated to furnish the affected employees with a certificate of service.

Either the employee or the employer has the right to terminate the employment contract, provided they serve the requisite notice or offer compensation in lieu of notice. In the case of terminating an indefinite-term contract, the minimum notice period is as follows:

• Seven days for a service period of one month or less,
• four days for an employee engaged on a daily basis, 
• 28 days for an employee employed on a monthly basis.

The notice must be provided in writing, specifying the grounds for termination and the date of notice. It’s important not to issue notice during any period of leave taken by the employee.

If an employee has a tenure of at least one year with an employer and faces redundancy, they are entitled to severance pay in Tanzania. The severance pay is calculated as a minimum of seven days’ basic wage for each completed year of employment, capped at ten years.

It’s important to note that severance pay is not applicable if termination is a result of misconduct, incapacity, incompatibility with business requirements, or if the employee declines alternative employment with the same or any other employer. Additionally, receiving severance pay does not impact an employee’s entitlement to other termination benefits.

Employment contracts have the option to incorporate clauses preventing employees from engaging in competition with their employer post-employment. However, to be legally enforceable under common law, these clauses must adhere to specific criteria. Notably, the restrictions outlined in such clauses must be reasonable in both scope and duration.

The Personal Data Protection Act of 2022 in Tanzania, ratified in November 2022, establishes frameworks for the collection and processing of personal data, emphasizing data protection. However, the Act is pending activation until an official notice is published in the Government Gazette, which has not occurred as of the current document date.

All employers are required to furnish pay slips to their employees, irrespective of the mode of payment—be it in cash, by check, or through direct deposit.

Employees who have completed one year of service with the same company are entitled to 28 consecutive days of paid annual leave, encompassing public holidays and weekends that may coincide with the leave period. Those with less than six months of service are ineligible for annual leave. The leave cycle spans 12 consecutive months of employment.

While employers can determine when employees take their leave, it must be scheduled within six months of the due date. Compensation in lieu of annual leave is not permissible, except in cases of employment termination.

Employees certified by a physician are entitled to 126 days of paid sick leave during a 36-month leave cycle. To qualify, the employee must have a minimum of six months of continuous employment with the same employer in the 12 months preceding the onset of illness or be seasonally employed by the same employer. The initial 63 days of sick leave are compensated at full pay, with the subsequent 63 days paid at half the regular rate.

Employees in Tanzania have the right to a minimum of four days of paid family responsibility leave annually, covering situations such as the illness or death of the employee’s child, spouse, parent, grandparent, grandchild, or sibling.

Maternity Leave:
Female employees with a minimum of six months of service for the same employer are entitled to a fully paid maternity leave of at least 12 weeks (84 days) or 100 consecutive days in case of multiple births, within a 36-month leave cycle. If the newborn passes away within a year, the employee is still entitled to 84 days of paid maternity leave. This inclusive period covers both rest days and public holidays.

Expectant employees are required to notify their employer and provide a medical certificate three months before commencing maternity leave. Maternity leave can commence four weeks before the expected childbirth date or earlier if medically recommended for the employee or her child. Furthermore, a postpartum employee should not engage in work for six weeks unless medically approved.

For breastfeeding employees, the employer must allow up to two hours per day for nursing the child during working hours.

Paternity Leave:
Male employees with a tenure of at least six months with the same employer are entitled to three days of paid paternity leave within a 12-month leave cycle. This leave should be taken within seven days of the child’s birth, and the statutory entitlement remains constant regardless of the number of children born during the leave cycle.