Tanzania

Employment Contracts

Employment contracts in Tanzania can be either written or verbal, but a written employment contract that details the terms and conditions of employment is recommended. A written employment contract should include:

• The names of the employer and employee
• Place of employment or where the work will be performed
• A description of the duties to be performed
• Start date of employment
• Duration of the contract (if for a fixed-term)
• Hours and days of work
• Salary details
• Vacation and other leave entitlements
• Other benefits and terms agreed to by the parties

Public Holidays

The following public holidays are observed in Tanzania:

• New Year’s Day
• Revolution Day
• Karume Day
• Good Friday
• Easter Monday
• Union Day
• International Workers’ Day
• Id-el-Fitr festival
• Saba Saba Day
• Id-el-Haj festival
• Nane Nane (Farmer’s Day)
• Maulid Day
• Independence and Republic Day
• Christmas Day

Compensation

Generally, employers are not required to pay employees bonuses. However, some collective agreements may require employers to bonuses to employees based on performance. Employers also can choose to provide bonuses to employees as part of their compensation package.

Working Hours

The standard work period in Tanzania nine hours a day and 45 hours over six days. Overtime is allowed only through an individual or collective agreement and cannot exceed 50 hours in a four-week period. Employees cannot work more than 12 hours in a day (regular work and overtime). The rate for overtime work is one and one half of the employee’s basic wage and double the wage for work during a public holiday.

Vacation Leave

Employees receive 28 vacation days per year. Annual leave must be taken within six months of the leave cycle or within 12 months of the leave cycle if necessary, for the operation of the business and the employee consents.

Sick Leave

Employees are entitled to 126 days of sick leave a year. Employees receive their full pay for the 63 days paid of leave and 50% for the remainder.

Maternity / Paternity Leave

Every 36 months (leave cycle), female employees receive 84 days of paid maternity leave or 100 days of paid maternity leave if she gives birth to two or more children. Male employees receive three days of paternity leave.

Employment Termination/Severance

In Tanzania, the employment contract may be terminated at the end of the contract by consent of the parties, the employer or employee. An employer must have a valid reason to terminate an employment contract. Valid reasons include employee misconduct, incapacity, incompatibility, or based on the operational requirements.

Employers must provide the employee with notice of the termination in advance. The notice period is between four and 28 days. Severance pay is at least equal to 7 days’ basic wage for each completed year of work up to a maximum of 10 years.

Health Insurance Benefits

Public healthcare is available in Tanzania but Private healthcare is recommended.