Recruitment in Tanzania

Recruitment in Tanzania Manpower is essential for businesses of all sizes. In this short briefing we will go over the basics of contractual provisions and pitfalls. Employment Contracts – Key Areas (a) Parties – this paragraph covers the employer and employee identities, addresses and contacts. (b) Position – which position is the employee being employed in? (c) Tasks – under the suggested position, what are the tasks of the employee? When are they supposed to be performed? Can the manager/supervisor allocate additional tasks aligned to that position? (d) Duration – what is the duration of the employment contract? The law states that a contract for employment cannot be lesser than 12 months. (e) Place of recruitment – where is the employee being recruited from? City and country should be mentioned in the contract. (f) Salary – what is the salary payable? Is it gross or net?

When and how payable. (g) Increment – will there be salary increment? How will the increment be undertaken? Performance targets to be considered should be mentioned. (h) Performance targets & review – when, what and how will the employee’s performance be assessed? (i) Level of education of employee – this clause should state the level of the employee’s education i.e. whether vocational, college, university, secondary etc. (j) Prohibited conducts and behaviours – whilst there are general conducts and behaviours which are not acceptable e.g. fighting, abusive language etc. but depending on the nature of business of the employer, some additional conducts may be prohibited e.g. for an industrial area, failure to observe safety precautions can lead to serious injuries. (k) Benefits – does the employer pay/offer additional benefits other than those which are mandatorily required under the law?

Example of additional benefits include health insurance, transport & food allowance etc. If employer offers those, how are they being offered? Can employer withdraw for some or all employees? At the sole cost of employer or employee can consent to contribute etc. (l) Hours of work – it is important for the employer to state clearly the hours and days for work.

(m) Location of the office – this helps the employer and employee to narrow down which office(s) the employee will ordinarily be reporting to unless instructed to travel to a different office. If there is a possibility of the employee being seconded or moved to another office regionally or outside of the country, such should be clearly stated in the contract. (n) Complaint and appeal procedures – employees should have a clear procedure of how to appeal to the management in case there is a problem/complaint either between employees or employees and a member of the management team. HR Pitfalls and solutions (a) Duration – some employment contracts do not have a duration. Whilst the law allows life time employment contracts, it normally creates issues for the employer when the employee is not performing well.

The process of termination becomes complicated and puts both parties in a strained position. It is advisable for the employment contract to have a specified duration and a renewal, on agreement by the parties. (b) Performance targets and review – the employer should clearly state what the employee’s monthly and annual targets are and set a system to have a monthly/annual review which is fair on both parties. Just because the position and tasks are stipulated in the employment contract, it does not mean that the employee is aware of what targets are to be fulfilled within a particular duration. An annual review of performance targets helps both parties to have an opportunity to air out their grievances or measures to be taken for the benefit of the business.

(c) Place of recruitment – the labour laws provide that at the termination of the contract, the employee shall be returned to the place of recruitment. If the employee moved cities or countries as a result of employment, the employer shall be obligated to return the employee at the place of recruitment. To avoid any misunderstandings i.e. the employee having moved or failed to disclose to the employer that they are moving cities/countries due to the employment position, it is important to clearly stipulate the place recruitment at the onset. (d) Failure to state whether the salary stipulated in the contract is gross or net. This can make a huge difference and can be a cause of problems down the line.

(e) Language – if the employment contract is in a language other than the language which the employee is conversant it, it is important to clearly state within the contract that the employee has consulted his/her preferred adviser and has understood all the terms stipulated in the contract. (f) Contractual terms to be in writing – some employment contracts are verbally without clear terms being put in

writing. This can cost the employer greatly since the labour laws will likely favour the employee in this instance. (g) Additional benefits – if the employer is offering additional benefits to employees e.g. health insurance and the employee is to contribute a certain percent, the employee must consent in writing to such deduction otherwise it will be illegal to make such deductions. If additional benefits are tied to meeting the performance targets, this should be clearly stipulated. (h) Workers compensation fund ( WCF) – employers must register with the WCF and make contributions according to the law. The WCF compensates the employee when the employee is injured or dies in the course of employment. It also allows the employer to claim whatever costs it has incurred to treat the employee who is injured in the course of employment.

It is mandatory to contribute to WCF and such contribution should not be deducted from the employee’s salary. (i) Lack of HR Manual – it is mandatory for each employer to have a HR manual which is shared with the employees. The HR Manual covers a number of aspects including unacceptable conduct, appeal and complaint procedures, reporting and chain of command etc. It is not possible for each employment contract to be as exhaustive but the HR Manual can be, is binding and applicable to each employee who is given access to it. If there is change of policy etc. the employer can update the HR Manual and re-distribute to the employees. (j) Termination without proper procedure – the labour laws of Tanzania are very specific in terms of undertaking a disciplinary procedure as a warning and prior to termination of employment.

Whilst the procedures can seem tedious and time consuming, they are there to protect the employee and the employer from claims of unfair termination. Regardless of how the employee behaved, the due procedures of disci0linary process must be followed by the employer otherwise the employer may be penalized. (k) Clarity on the employer’s policy regarding loans – some employers issue loans or facilitate employees to get loans from financial institutions. The HR manual should be clear about issuance of loans, repayment and whether the employer entertains such applications. (l) Overtime – the labour laws require the employer to compensate an employee when the latter works overtime. The HR manual should be clear about the procedure to be followed by the employee prior to working overtime.

For example the employee should get written approval from the immediate supervisor prior to working overtime. The application for approval should clearly state the matter being worked on, when it’s due, specific hours of overtime required and why over time is necessary etc. If

there is no clear procedure for approval of overtime, it is likely that the claim for over-time pay by the employee will be approved by the tribunal. (m) Secondment or moving of the employee – if the employer has operations across various regions or countries, it is for the best interests of the employer to clearly state within the employment contract the place of employment but that the employer can on a specified notice require the employee to re-locate to any other office of the employer and such relocation i.e. transport of personal effects and family will be at the cost of employer. Worth clearly stating if such move shall warrant increase/reconsideration of salary payable or same salary and benefits will be applicable.

Note that, if there is no such provision in the employment contract, when the employer seeks to relocate the employee, the employee may refuse and argue constructive termination by employer. Our support for your business (a) We assist in the recruitment process i.e. research, interview and recruitment of suitable candidates for clients; (b) We assist our clients to negotiate terms of employment and draft/review employment agreements; (c) We assist in recruitment of daily labourers; (d) We advise and assist in disciplinary proceedings and ensure termination of employment is under due process of the law; (e) We provide ongoing training, capacity and team building support to our clients. (f) We negotiate collective bargaining agreements with trade unions on behalf of clients; and (g) We represent clients in labour case proceedings before the relevant tribunals.

We are a law firm and readily available to assist in all your legal needs and beyond. Call us for a same day meeting and assistance. Disclaimer The views expressed in this paper are those of the author only and should not be considered as an official interpretation, defamatory or interference of any legislation, laws or policies of any country including Tanzania. The contents of this paper should not under any circumstances be reproduced or used without our express written consent. It should not be considered as a legal advice to any of its recipient(s) and should not be relied upon without obtaining further legal advice.

We accept no liability for any loss occasioned or suffered due to the contents of this paper.