Hire in Tanzania

Fixed-term contracts in Tanzania are only allowed for professionals or managerial employees. The law does not specify a maximum duration or the number of renewals allowed for such contracts.

For professionals and managerial employees, the fixed-term contract cannot be less than 12 months. The terms must be set out in writing, clearly specifying the duration of the contract, the nature of the work as well as the rights and obligations of both the employer and the employee.

Fixed-term contracts automatically expire upon completion of the specified duration or task. No notice of termination is required. However, either party can terminate the contract before its expiry by providing notice or payment in lieu of notice, as per the terms specified in the contract or as required by law. If the employee continues to work after the contract expires without objection from the employer, the contract is considered renewed for an indefinite period.

Employees on fixed-term contracts enjoy the same rights and benefits as permanent employees, including rights related to minimum wages, working hours, leave entitlement and occupational health and safety.

If a fixed-term contract is terminated before its expiry and the employee is not at fault, the employee will be entitled to compensation. This compensation is calculated based on the remaining duration of the contract or the remaining task, whichever is shorter.

Before hiring an employee, employers in Tanzania may conduct certain checks, such as verifying identification and residency. Employers may also perform background checks on the potential employee’s job history, including looking into any restrictive covenants imposed by previous employers as well as confirming education, professional qualifications and personal references.

While the Employment and Labor Relations Act of 2004 does not explicitly provide for a probationary period, the statute’s language implicitly allows for a six-month probation period as employees with less than six months of employment are unable to make claims of unjust termination against their employer.

In Tanzania, normal working hours are nine hours per day and 45 hours per week. Employees may work up to six days per week but this nine-hour period does not include a lunch break.

Employees are entitled to a one-hour break after working for five hours.

The maximum working hours are 12 hours per day and 50 hours in a four-week cycle.

When an employee works beyond their normal working hours, they are entitled to overtime pay at a rate of 150% of their ordinary salary. When overtime hours are worked on a weekly rest day or public holiday, the employee is entitled to 200% of their ordinary salary for every hour worked.

Employers must keep employment documents such as contracts for five years following 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/retrenchment

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

• Employees who are pregnant or on maternity leave
• Employees who are trade union members or participate in lawful trade union activities
• Employees who are whistleblowers or report any unlawful or improper conduct of the employer or any other person
• Employees who are absent from work due to illness or injury (for a period not to exceed 36 months in total)
• Persons with disabilities (unless they cannot fulfill their obligations even with adequate accommodations)

If employers terminate certain groups of workers without a valid reason or proper procedure, they may be held responsible for unfair termination and face legal consequences. When an employee is terminated, the employer is required to provide them with a certificate of service.

Either the employee or the employer may terminate the employment contract after serving due notice or paying in lieu of notice. When terminating an indefinite-term contract, the minimum notice period required is as follows:

• Seven days for the service of one month or less
• Four days for an employee hired on a daily basis
• 28 days for an employee hired on a monthly basis

The notice must be given in writing and should include the reasons for termination as well as the date the notice is given. However, the notice should not be given during any period of leave taken by the employee.

If an employee has worked for an employer for at least one year, they are entitled to severance pay in the event of redundancy. The amount of severance pay in Tanzania is at least seven days’ basic wage for each completed year of employment, up to a maximum of ten years.

Severance pay is not applicable if an employee is terminated due to misconduct, incapacity, incompatibility with business requirements or if they refuse alternative employment with the same or any other employer. Severance pay also does not affect an employee’s entitlement to other termination benefits.

Employment contracts may include clauses that restrict employees from competing with their employer after their employment has ended. However, these clauses must meet certain standards to be enforceable according to common law. For example, the restrictions must be reasonable in scope and duration.

Tanzania’s Personal Data Protection Act 2022 was passed in November 2022 to provide guidelines for the collection and processing of personal data, ensuring its protection. However, the Act is not yet in effect until a notice is published in the Government Gazette, which has not yet been done as of the date of this document.

Employees can be paid on an hourly, daily, weekly or monthly basis. If the employer pays in cash or check, they must do so in a sealed envelope during working hours at the workplace on the agreed-upon payday. Alternatively, salaries can be directly deposited into an employee’s designated bank account.

Employers must provide pay slips to all employees, whether they are paid in cash, by check or through direct deposit.

Employees who have been with the same company for a year are entitled to 28 consecutive days of paid annual leave, including public holidays and weekends that may occur during the leave period. Employees who have been with the company for less than six months are not eligible for annual leave. A leave cycle is comprised of 12 consecutive months of employment.

Employers can decide when employees take their leave, but it must be within six months of the due date.

Employers cannot pay compensation in lieu of annual leave, except on termination of employment.

Employees who are certified by a physician are eligible for 126 days of paid sick leave within a 36-month leave cycle. To be eligible, the employee must have worked for the same employer for at least six months in the 12 months before the illness began or be employed seasonally by the same employer. The first 63 days of sick leave are paid at full pay, while the remaining 63 days are paid at half pay.

Employees in Tanzania are entitled to at least four days’ paid family responsibility leave each year for applicable reasons, including the sickness or death of the employee’s child, employee’s spouse, parent, grandparent, grandchild or sibling.

Maternity Leave

Female employees who have worked for the same employer for at least six months are entitled to at least 12 weeks (84 days) of fully paid maternity leave or 100 consecutive days (in the event of multiple births) in a 36-month leave cycle. If the newborn dies within a year of birth, the employee is entitled to 84 days of paid maternity leave within a leave cycle. The days of leave include rest days and public holidays.

Pregnant employees must notify their employer and present a medical certificate three months prior to starting maternity leave. Maternity leave can start four weeks before the anticipated date of childbirth or earlier if a medical professional certifies it is required for the employee or her child. In addition, an employee is not allowed to work within six weeks of giving birth unless she has received medical clearance.

If an employee is breastfeeding, the employer must allow her up to two hours per day to nurse the child during working hours.

Paternity Leave

Male employees who have worked for the same employer for at least six months are entitled to three days paid paternity leave in a 12-month leave cycle. The leave must be taken within seven days of the child’s birth. The statutory entitlement does not increase in proportion to the number of children born during the leave cycle.

Tanzania celebrates 17 public holidays that include religious holidays, national holidays, commemorations of leaders and other significant events.