A Critical Analysis Of Latest Amendments To Employment Laws In Tanzania

The recent amendments to the Employment and Labour Relations Act,2004 through the Labour Laws (Amendments) Act, 2025, signify a crucial reform in Tanzania's labour legal framework. These changes aim to address existing legislative gaps, promote fairness in employment practices, and reflect evolving workplace realities. Key among the amendments are provisions related to new classifications of employment contracts, enhanced maternity and unpaid leave rights, emergency workplace measures, and structured compensation for unfair termination. This analysis critically examines the impact and implications of these amendments on employment relations in Tanzania.

This article gives an indepth analysis of the amendments.

1. AMENDMENT OF THE EMPLOYMENT AND LABOUR RELATIONS ACT.

1.1. Repeal of Section 14 (1) (b) and introduction of a new one.

1.1.1. Introduction of a new Section 14 (1)(b) Under the new amendments, the new Section 14 introduces provisions related to types of Contracts of Employment. Whilst Section 14 (a) provides for Contracts of unspecified periods of time, the newly introduced Section 14 (b) provides for contracts for specified periods of time for an employee who:

(i) is employed on account of a temporary increase in the volume of work which is not expected to endure beyond twelve months;

(ii) is a graduate who is employed for the purpose of being trained or gaining work experience in order to be employed, provided such training does not exceed twenty-four months;

(iii) is employed to work exclusively on a specific project that has a limited or defined duration;

(iv) is a non-citizen who has been granted a work permit for a defined duration;

(v) is employed to perform seasonal work;

(vi) is employed for the purpose of an official public works scheme or similar public job creation scheme;

(vii) is employed in a position which is funded by an external source for a limited period;

Before coming into force of the New Act, the Law provided for "Contracts for specific periods of time for "proffessionals and managerial cadre". The new Act widens the range in which one can be employed under a specific period of employment. This will assist employers to have flexibility in the nature of Contracts issued to employees depending on the specific needs and conditions.

Introduction of Section 16 A
- The amendment introduces section 16 A, which provides for an agreement between an employer and employee in the event of emergency. While section 16 imposes an obligation on employers to inform the employees of their rights, the newly introduced section 16A enables the employer and employee to mutually agree on appropriate measures to address any of the following emergency circumstances;
An outbreak or potential outbreak of infectious disease or
Other emergency which is likely to affect the safety of employees or
Disrupt operations and production at work place

Before coming into force of the New Act, the law was silent on how to manage the emergency situations. The new Act aim to ensure both the safety of employees and continuity of business operations during emergencies. It also provides a dispute resolution mechanism (CMA) in the event that the employer and employee are unable to reach an agreement.

Introduction of section 33(8)
- Introduction of a new section 33(8) under the new amendments, the new section 33(8) provides for paid maternity leave for female employees in the event of a premature birth. While section 33 generally provides for a standard maternity leave period, the newly inserted section 33(8) specifies that, in cases of premature birth, the maternity leave shall be calculated from the date of premature birth through to the expected completion of a full-term pregnancy (i.e. 40 weeks of gestation) and thereafter extend to cover the statutory maternity leave period.

Before coming into force of the New Act, the law was silent on provision of maternity leave in cases of premature birth, and only prescribed a uniform maternity leave entitlement of ninety (90) days, regardless of the gestation age at the time of delivery. The new act allows mothers to focus on their health and recovery post-delivery, while also attending to the specialized needs of premature infants. This approach aligns with global health recommendations and can lead to better health outcomes for both mother and child.

Introduction of section 34 A
- The amendment introduces a new Section 34A, which provides for unpaid leave. While Section 34 provides for various forms of paid leave, including paternity leave, sick leave, and compassionate leave in the event of the death of an employee's child, spouse, parent, grandparent, grandchild, or sibling, the newly introduced Section 34A allows employees to apply for, and employers to grant, up to thirty (30) days of unpaid leave. The provision also allows for an extension of the leave period upon mutual agreement between the employer and employee.

Before coming into force of the new Act, unpaid leave was not specifically provided for under the law. The introduction of Section 34A enables employees to attend to personal or family matters without the risk of termination, thereby promoting a healthier work-life balance.

Repeal of section 40 (1) (c) and introduction of a new one.
- Introduction of section 40(1) (c) under the new amendments, the new amendment introduces provisions relating to the payment of compensation to the employees in cases of unfair termination. Under the repeal section 40 (1) (c) compensation was set at not less than twelve months' remuneration. The amended section 40(1) (c), however introduces specific grounds and corresponding compensation ranges allowing for compensation between six and twenty-four months' remuneration, depending on the nature of the unfair termination, as outlined below:

Unfair termination based on procedural irregularity, the compensation of not less than six months remuneration but not exceeding twelve months remuneration;
Unfair termination based on substantive (unjustified) reasons, the compensation of not less than twelve months remuneration but not exceeding eighteen months remuneration;

Unfair termination based on both procedural and substative reasons, the compensation of not less than not less than twelve months remuneration but not exceeding twenty months remuneration; and

Unfair termination based on discriminations or harassment, the compensation of not less than twelve months remuneration but not exceeding twenty-four months remuneration.

Before come into force of the new Act, the law provided a uniform compensation threshold without regard to the nature or severity of the unfair termination. The new provision introduces a more structured and proportionate compensation framework, aligning the remedy with the specific circumstances of the unfair termination.

Introduction of section 41A
- The amendment introduces a new section 41A, which provides for remedies in the event of material breach of an employment contract. While the provision of section 41 addresses termination of an employment contract upon notice, the newly introduced section 41 A stipulates, where there is a material breach of a fixed-term contract by the employer, and such breach is established to the satisfaction, the employer shall be required to compensation to the employee equivalent to the for the remaining term of contract.

Before come into force of the new Act, the law did not provide specific remedies for the material breach of contract, the new amendment serves to protect employees under fixed-term contracts by ensuring that employers adhere to the agreed contractual terms and by providing a clear path for compensation in cases of premature and unjustified termination.

Introduction of section 88 (8)
- Introduction of section 88 (8) under the new amendments, provides for the issuance of the award in respect of an admitted claim. While the previous provisions under section 88 did not expressly address the issuance of awards based on admitted or undisputed claims, the newly introduced section 88 (8) empowers the Arbitrator to issue an award for the portion of the claim that is admitted or not in dispute.

Before this amendment come into force, parties were required to prove even those facts that were not disputed, resulting in unnecessary delays in the dispute resolution process. The introduction of new section 88 (8) streamlines arbitration proceedings, reduces procedural burdens, and facilitates faster resolution of disputes.

Introduction of section 88 (9)
- The amendment of section 88 (9) under the new amendments, provides for an application for setting aside ex-parte order or restoration of a dismissed proceeding. While the provision of section 88 did not specifically provide for such reliefs, the newly section 88(9) stipulates for 14 days for the aggrieved party to apply for setting aside of ex-parte order or for an order of restoration of dismissed matter.

Before the coming into force of the Act, the law was silent on the measures to undertake when there is order of ex-parte or dismissal order. The new section 88(9) guarantees that a party who was absent during proceedings whether due to reasonable cause or unforeseen circumstances the opportunity to be heard and it protects the fundamental rights to a fair hearing.

Introduction of section 88 (12)
- The introduction of section 88(12) under the new amendments provides that arbitrators must notify the parties in the event of a failure to issue an award within thirty days. While the previous version of section 88 did not expressly prescribe a time limit for the delivery of an arbitral award, the new section 88 (12) imposes a clear obligation on arbitrators to render their award within thirty (30) days from the conclusion of hearing.

specifically provides for limitation of time for deliverance of the arbitrators award, the new amendment of section 88 (12) imposes obligation to the Arbitrator's to give awards within 30 days from the conclusion of the hearing of proceedings and in the event the award is not composed as prescribed the parties are entitled to be notified of the reasons for delay in delivering the award.

In circumstances where the award is not issued within the prescribed period, the arbitrators is required to notify the parties in writing, provide reasons for the delay, and fix a new date for the delivery of the award.

The amended new section 88 (12) increases parties confidence in the fairness and efficiency of arbitration and ensures that the proceedings remains transparent and arbitrators are held accountable for timely proceedings.

AMENDMENT OF LABOUR INSTITUTION ACT
- Introduction of proviso to section 15 (1) (b)
  - The introduction of proviso to section 15 (1) (b) under the new amendment provides that, a mediator shall not arbitrate a dispute which they were previously involved as mediator. The new proviso to section 15 (1) (b) specifically prohibits mediators from subsequently acting as arbitrators in the same matter. This amendment aligns with the principle that mediation aims to amicably resolve the disputes without determining the matters in merit unlike arbitration which is adjudicative process.

Before this new amendment came into force, the mediators could become arbitrators in some circumstances, such as failure of a party to appear during mediation process. The amended proviso to section 15 (1) (b) seeks to eliminate such conflicts of interest and enhance the integrity, impartiality and fairness of dispute resolution process.

Conclusion

The amendments to the Employment and Labour Relations Act represent a positive step toward strengthening labour protections and fostering a more adaptable and just employment environment. By addressing emerging challenges such as emergency protocols, premature birth leave, and contract breaches, the new provisions provide both employers and employees with greater legal clarity and flexibility. However, successful implementation will require ongoing awareness, enforcement, and commitment from all stakeholders to uphold the intended spirit of the law.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.