Contracts and Dismissals

Written Employment Particulars

Tanzanian labour Law requires that workers should be provided with a written employment contract at the start of employment, except for those who work less than 6 days in a month for an employer. The employment contract may be of a definite or indefinite period or for a specific task. An employment contract must be in writing if it provides that the worker is to work outside the United Republic of Tanzania.

An employment contract must state the following information: name, age, permanent address and sex of the worker; place of recruitment; job description; date of commencement; form and duration of the contract; place of work; hours of work; remuneration, the method of its calculation, and details of any benefits or payments in kind, and any other prescribed matter. However, if these particulars have already been provided in the employment contract, the employer may not furnish the written statement of employment particulars.

The employer must ensure that all the written particulars are clearly explained to the worker in a manner understandable by the worker. If there is a change in any of the written particulars, the employer is required to revise the written particulars in consultation with the worker to reflect the changes. The employer must notify the worker about the change in writing.

The employer is obliged to keep the written particulars for a period of five years after the termination of employment. If an employer fails to produce a written contract in any legal proceedings, the burden of proving or disproving an alleged term of employment is on the employer. Every employer has to display a statement of employees' rights in a conspicuous place.

Source: §14-16 of Employment and Labour Relations Act 2004

Fixed Term Contracts

Tanzanian labour Law prohibits hiring fixed-term contract workers for tasks of a permanent nature. A contract of employment may be concluded for an unspecified (indefinite) period of time, for a specified period in the case of professionals and the managerial cadre, or for a specific task. There is no other provision in the Employment and Labour Relations Act, 2004 on the number of times a fixed-term contract may be renewed or the maximum length of fixed-term contracts.

Under the Employment and Labour Relations Act 2004, fixed-term contracts were permitted only for professional and managerial categories or for tasks of a definite time or specific projects. However, as per the 2025 Amendment, employers can now hire fixed-term contract workers in the following cases:

1. Temporary workload increases: When the amount of work suddenly rises for a short period and is not expected to last more than 12 months.
2. Graduate trainees: To provide structured training or work experience to recent graduates for a maximum period of 24 months.
3. Seasonal workers: To cover work that only exists in certain seasons, such as harvest periods or peak tourism months.
4. Specific project work: To work on a particular project, with a contract that ends when that project is completed or after a clearly defined period.
5. Foreign migrant workers: To engage foreign migrant workers whose contracts are tied to, and do not go beyond, the period covered by their work permits.
6. Public works scheme: To engage workers under a government public works or job-creation programme, for as long as that scheme runs.
7. Externally funded positions: To engage workers in jobs that exist only because of funding from an external source (for example, a donor-funded project), and only for the period that funding is available.
8. Retirees: To engage individuals who have already reached the normal retirement age but are re-employed on a fixed-term basis.
9. Tender-based work: To engage people in roles that depend on the employer winning a specific tender or contract, and which last only for the duration of that tender.

Employment and Labour Relations (General) Regulations, 2017 stipulate that the fixed term contract for professionals and managerial employees cannot be less than 12 months.

If a worker continues working after the expiry of fixed period, the rights and obligations remains the same, in the absence of any agreement to the contrary, as they were at the expiration of the term. If there is no fixed duration of the partnership, any partner may determine the partnership at any time by giving notice of his intention to all the other partners.

Under the 2025 Amendment, if an arbitrator or the Labour Court finds that an employer has committed a material breach of a fixed-term contract (a serious breach of the agreement), they can order the employer to pay the employee compensation equal to the salary they would have earned for the rest of the contract period. Source: §14 & 41A of the Employment and Labour Relations Act 2004, §197 & 200 of the Law of Contract Act CAP 345; Labour Laws (Amendments) Act, No. 13 of 2024

Probation Period

There is no explicit provision in the Employment and Labour Relations Act 2004 about a 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.

Source: §35 of the Employment and Labour Relations Act 2004

Termination of Employment

Employment termination is regulated under the Employment and Labour Relations Act 2004.

The employment contracts can end in the following ways: 1. Termination by the employer 2. voluntary resignation by the employee 3. mutual agreement between employer and employee 4. summary dismissal (in case of gross misconduct by the employee) 5. retrenchment (operational requirements) 6. Incapacity of employee (poor performance or ill health) 7. expiration of the contract term or completion of the agreed work 8. Death of the employee 9. constructive termination (employer made the employment intolerable for the employee)

Termination of employment is considered lawful when based on a valid reason related to an employee's conduct or capacity, or on an operational requirement of the employer. Fair procedures are followed for individual and collective dismissals. Termination must not be based on discrimination or any prohibited grounds under the law.

Employment is terminated without prior notice in case of gross misconduct. It involves a significant violation of the terms of employment terms or workplace conduct. However, the employer must follow fair procedures, including investigations and disciplinary hearings, to ensure the dismissal is justified.

It is not a fair reason to fire an employee if:

• They share information they are legally allowed or required to disclose.

• They refuse to do something unlawful that the employer has no right to ask them to do.

• They use any right given to them under their employment contract, the labour law, or any other law.

• They are a member (or were a member) of a trade union.

• They take part in lawful trade union activities, including a lawful strike.

• The reason for contract termination is related to their pregnancy or disability, or is otherwise discriminatory under the law.

lacks a fair reason or if a fair procedure is not followed. The Employment and Labour Relations Act, provides protections against unfair dismissal, and employees can seek redress through the Commission for Mediation and Arbitration (CMA). The CMA or labour court may order reinstatement, re-employment or compensation (if reinstatement is not practical), or terminal benefits.

Under the earlier provisions, an employee who prevailed in an unfair termination claim was entitled to a minimum of 12 months’ salary as compensation, with no upper limit specified. Under the 2025 Amendment, a statutory cap and gradation have been introduced for unfair termination compensation. Under the amended law, compensation for unfair dismissal is now capped at 24 months’ wages and scaled by severity: e.g. generally 6–12 months, up to 12–24 months for cases involving unfair procedure, reason, discrimination or harassment.
Source: §37-44 of Employment and Labour Relations Act 2004