The Parliament of Tanzania has enacted significant amendments to the Employment and Labour Relations Act [Cap 366 R.E. 2019] through the Labour Laws (Amendments) Act, 2025, assented to on 4 March 2025.
These changes directly impact employment contracts, workplace policies, dispute resolution mechanisms, and employer obligations. Key amendments are as follows.
Employment contracts
- Specified period contracts:The amendments broaden the scope for using fixed-term contracts, removing the previous limitation to employees in professional or managerial cadres. Fixed-term contracts can only be issued under the following circumstances, among others:
- temporary increase in the volume of work that is not expected to endure beyond 12 months;
- employment for a specific project;
- graduate training programs (up to 24 months);
- non-citizen employment tied to work permit durations; and
- seasonal work
- Emergency agreements:In the event of emergencies, such as infectious disease outbreaks, employers and employees are now required to collaborate and agree on measures to address workplace disruptions.
Leave policies
- Maternity leave:To support families and promote employee well-being, the amendments stipulate that employees who give birth prematurely are entitled to paid maternity leave from the date of the birth until the completion of 40 weeks of pregnancy. This is in addition to the standard maternity leave entitlement within the leave cycle.
- Unpaid leave:Employers retain the discretion to grant unpaid leave for up to 30 days upon written application from an employee, with the possibility of extensions through mutual agreement.
Termination and compensation
- Unfair termination compensation:The amendments introduce a revised framework for compensation in cases of unfair termination, providing more specific guidelines for arbitrators:
- Unfair procedure:6 to 12 months’ remuneration.
- Unfair reason:12 to 18 months’ remuneration.
- Both unfair procedure and reason:12 to 20 months’ remuneration.
- Discrimination or harassment-related termination:12 to 24 months’ remuneration.
- Breach of fixed-term contracts:Employers found in material breach of fixed-term contracts will be ordered to compensate an employee for the remaining term of the contract.
Disciplinary matters
Employers are prohibited from initiating or continuing disciplinary proceedings against an employee if the matter has already been referred to the CMA or court for determination.
Dispute resolution
- The amendments emphasise the importance of direct involvement in mediation processes. Parties to a dispute are now required to attend mediation sessions in person. However, if unavoidable circumstances prevent attendance, a party may appoint another person in writing to attend on their behalf.
- Arbitrators are now empowered to issue awards based on claims admitted by either party during the dispute resolution process, streamlining disputes where an agreement exists.
Document service
Documents required to be served upon a company in labour disputes may now be served electronically or through a process server, streamlining administrative processes.
