In Tanzania, the Employment and Labour Relations Act (ELRA) sets out the minimum notice periods that employers must give to employees when terminating employment. The length of the notice period is determined by the employee's length of service with the company.

Statutory Notice Periods

According to the ELRA, the following minimum notice periods are required based on an employee's tenure:

• First Month: One week's written notice.
• Daily or Weekly Paid Employees (After First Month): Four days' written notice.
• Monthly Paid Employees (After First Month): Twenty-eight days' written notice.

It's important to note that the notice period must be provided in writing and begins the day after the employee receives the written notification.

Exceptions to Statutory Notice Periods

While the ELRA provides the minimum notice periods, there can be exceptions:

• Collective Bargaining Agreements: If a collective bargaining agreement exists between the employer and a union, it may establish different notice periods that take precedence over the statutory minimums.
• Employment Contracts: Employment contracts can also define notice periods. If the contractual period is longer than the statutory minimum, the longer period applies to both the employer and the employee.

Payment in Lieu of Notice

Employers have the option to pay the employee an amount equivalent to their wages for the notice period instead of requiring them to work during that time. However, the employer must still file a separate notice with the labour commissioner at least 30 days before the termination date, regardless of the payment option.

In Tanzania, the Employment and Labour Relations Act of 2004 stipulates that employees are entitled to severance pay under certain circumstances when their employment is terminated by the employer.

Eligibility for Severance Pay

Employees in Tanzania are eligible for severance pay if their employment is terminated due to:

• Redundancy: This applies when the termination is due to economic factors or changes in the company's structure that render the employee's position redundant.
• Employer's Inability to Fulfill Obligations: This applies when the employer is unable to fulfill their contractual obligations or provide suitable work for the employee.
• Employer's Unfair Refusal to Offer Alternative Employment: This applies when the employer is restructuring or facing economic hardship and unreasonably refuses to offer the employee a suitable alternative position.

Calculation of Severance Pay

Eligible employees are entitled to:

• At least seven (7) days' basic wage for each completed year of continuous service with the employer, up to a maximum of ten (10) years.

For example, an employee who has worked for the company for eight years with a basic monthly wage of TZS 500,000 would be entitled to eight years x 7 days x (TZS 500,000 / 26 working days) = TZS 1,076,923 severance pay.

Important Notes

• Severance pay is not required for employees terminated due to misconduct or summary dismissal.
• Upon termination, the employer is also responsible for paying any outstanding wages, unused leave, and other contractual benefits.

Severance pay in Tanzania provides financial support to employees who lose employment due to circumstances generally outside their control. Employers must be aware of the eligibility criteria and calculation methods to ensure compliance with legal mandates.

The Employment and Labour Relations Act (ELRA) in Tanzania provides the legal framework for terminating employment, protecting the rights of both employers and employees. It's crucial to understand the correct procedures to ensure a lawful and fair termination process.

Types of Termination

The ELRA recognizes different types of termination:

• Ordinary Termination: Termination by the employer or employee without specific fault or misconduct.
• Summary Dismissal (Termination with Cause): Immediate termination by the employer for severe misconduct or gross breach of contract by the employee.
• Redundancy Termination: Termination due to economic or structural changes within the company, rendering the employee's position unnecessary.

Ordinary Termination

Ordinary termination is initiated by either party where there is no specific fault or misconduct attributed.

Key Steps for Ordinary Termination

1. Notice Requirements: Employers must comply with the statutory notice periods or any longer period stipulated in an employment contract or collective agreement.
2. Written Notice: The termination notice must be provided in writing. It should clearly outline the reason for termination and the effective termination date.

Summary Dismissal (Termination with Cause)

Employers may immediately terminate an employee (summary dismissal) in the following circumstances:

• Gross negligence of duty
• Serious misconduct in the workplace
• Criminal acts that render the employment relationship unsustainable
• Willful damage to the employer's property

Procedural Requirements for Summary Dismissal

1. Investigation: Employers must thoroughly investigate the alleged misconduct.
2. Opportunity to Respond: The employee must be given a fair opportunity to explain their actions or defend themselves against the allegations.
3. Written Notice: Although immediate, the dismissal should be followed with a written notice outlining the reasons for termination.

Redundancy Termination

Employers may terminate employees due to redundancy in cases of company restructuring, economic factors, or technological advancements rendering their position unnecessary.

Procedural Requirements for Redundancy Termination

1. Consultation: Employers must consult with employee representatives or the affected employees themselves.
2. Selection Criteria: Transparent and fair criteria for selecting employees for redundancy must be established.

General Considerations

• Fair Reason: Generally, employers must have a valid reason for termination.
• Documentation: Employers should document the process, reasons, and any related communication.
• Labor Commissioner: Employers are required to notify the Labor Commissioner of terminations in certain circumstances.

The ELRA outlines minimum standards. Collective bargaining agreements and employment contracts may provide additional safeguards or requirements that must be followed during the termination process.