This Article is meant to shed light in summary on the key changes brought forth by the Labour Laws (Amendments) Act No. 4 of 2025 (herein ‘the Labour Amendments Act’) to the following labour laws in Tanzania:

A. the Employment and Labour Relations Act, 2019

B. the Labour Institutions Act, 2019

C. the Non-Citizens (Employment Regulation) Act, 2015

A. Key Changes to the Employment and Labour Relations Act, 2019

Amendment of Section 14 – Expansion of Fixed-Term Employment Contracts

Formerly, fixed-term contracts were limited to individuals in the professional and managerial cadre; and had to be for at least 12 months. The Labour Amendments Act now permits fixed-term contracts to cover a wider range of employment categories including amongst others Graduate Trainees employed for training or internship purposes; Seasonal Employees engaged on demand during particular periods of the year; Non-Citizens granted work permits for a specified period; and Retirees who are engaged after reaching compulsory age of retirement, e.t.c. Also, now the duration of a fixed-term contract can be of less than 12 months, to accommodate the temporary workload increases.

Notably, this amendment aims to create more employment opportunities for new graduates even retirees, expanding the eligibility for fixed-term contracts, and to reduce unemployment in the country.

Introduction of Section 16A – Emergency Agreements

To address circumstances arising from the outbreak of infectious diseases or other emergencies that may impact the working environment or disrupt production, the Labour Amendments Act has introduced section 16A that allows employers and employees to negotiate and mutually agree on appropriate measures to manage such situations effectively. And where no mutual agreement is reached, the matter may be referred to the Commission for Mediation and Arbitration (CMA). The core intension being protection of the employment relationship, productivity, and ensuring job security during unforeseen emergencies.

Amendment of Section 33 – Maternity and Paternity Leave in Case of Premature Birth

The Labour Amendments Act has amended section 33 by introducing provisions for maternity and paternity leave for premature births.

Now a female employee who gives birth to a premature child is in addition to the ordinary maternity leave period of 84 days in case of a single child and 100 days in case of multiple children, entitled to a paid maternity leave from the date of giving birth up to completion of the 40 weeks of pregnancy. This enhancement ensures that female employees who are mothers of premature infants are granted adequate time to care for their newborns.

Additionally, for a male employee, the Labour Amendments Act has also introduced a paid paternity leave of 7 days to be taken within 7 days of the premature birth of the child.

Introduction of Section 34A – Unpaid Leave

Previously, there were no specific provisions in the law relating to unpaid leave. The Labour Amendments Act has now introduced this provision allowing a grant of unpaid leave to the employee for a period not exceeding 30 days. The granting of such leave is at the discretion of the employer and the duration can be extended based on mutual agreement between the employer and the employee.

Amendment of Section 37 – Restrictions on Disciplinary Proceedings

The Labour Amendments Act has introduced provisions under section 37 forbiding employers to commence or continue with disciplinary proceedings against the employee when the matter has been referred to the Commission for Mediation and Arbitration (CMA) or Labour Court for determination.

Amendment of Section 40 – Compensation for Unfair Termination

The Labour Amendments Act has modified the compensation for unfair termination which before were limited to reinstatement, re-engagement or compensation of not less than 12 months. The Labour Amendments Act has now introduced a more structured compensation approach based on the nature of the unfairness involved ensuring the level of compensation corresponds with the magnitude of the unfair termination. The compensation is now categorized as follows: –

• Termination based on unfair procedure – compensation should be not less than six (6) months’ remuneration but not exceeding 12 months’ remuneration.
• Termination based on unfair reason – compensation should be not less than 12 months’ remuneration but not exceeding 18 months’ remuneration.
• Termination based on both unfair procedure and unfair reason – compensation should be not less than 12 months’ remuneration but not exceeding 24 months’ remuneration.
• Termination based on discrimination or harassment – the compensation should be not less than 12 months’ remuneration but not exceeding 24 months’ remuneration.

Introduction of Section 41A – Remedies for Material Breach of a Fixed-Term Contract

The Labour Amendments Act has introduced section 41A to address remedies for material breach of a fixed-term contract by employer. Where the employer is found responsible for the breach of a fixed-term contract, an arbitrator or a judge may order the employer to pay compensation to the employee equal to the remuneration for the remaining term of such contract.

Amendment of Section 87 – Consequences of Non-Attendance in Mediation

Previously, the mediator had powers to decide on a dispute being mediated by them if the defendant party to the dispute failed to attend a mediation hearing. With the Labour Amendments Act, in such a case, the mediator is now required to mark the dispute as failed instead of deciding the complaint.

Furthermore, with the Labour Amendments Act, the CMA is now allowed to restore a matter dismissed because of non-attendance to the mediation hearing by the complainant party, whereby before the amendments, the CMA could only reverse a decision made on non-attendance in mediation hearing by the complainant party.

Amendment of Section 88 – Arbitration

The Labour Amendments Act with the aim to improve the procedure for hearing and deciding disputes before the Commission has introduced the requirement for an arbitrator to notify the parties in writing and state the reasons for delay and fix the date for delivering of the award or order in the event of failure to issue an award within 30 days.

Additionally, where a party to a dispute admits the claims or part of the claims, an arbitrator is now required to issue an award for the admitted claims. Also, an arbitrator is now allowed to dismiss a matter on the non-attendance of a party to the matter.

The Labour Amendments Act has also introduced a timeframe of 14 days from the date of a decision for an aggrieved party to make an application for setting aside the ex-parte order or restoration of the matter in cases where a matter has been heard ex-parte or dismissed for non-attendance of a party.

Amendment of Section 94 – Jurisdiction of Labour Court

The Labour Amendments Act has amended section 94 to restrict applications for revision to the High Court in respect of any preliminary or interlocutory decision unless such decision or order has the effect of finally determining the matter.

Amendment of Section 97 – Service of Documents

The Labour Amendments Act has amended section 97 by introducing additional means for the service of documents to include electronic service and a process server service. Previously, the service of documents was limited to postage, physical and personal.

B. Key Changes to the Labour Institutions Act, 2019

Amendment of Section 15 – Powers of Commission

The Labour Amendments Act has amended section 15 to restrict a mediator from arbitrating a dispute which he was involved in its mediation. Prior to this amendment, it was possible for a mediator to serve on the arbitration panel for the same matter in which they had mediated. The primary objective of this amendment is to minimize the risk of conflict of interest in dispute resolution.

C. Key Changes to the Non-Citizens (Employment Regulation) Act, 2015

Amendment of Section 9 – Employment and Engagement in Multiple Companies (Work Permit Class A)

The Labour Amendments Act has amended section 9 to require a holder of a work permit class A who intends to engage with another company in which they hold shares to present a tax clearance certificate from the Tanzania Revenue Authority (TRA) to obtain a written authorization from the Labour Commissioner to engage in additional engagements beyond their primary role. Previously, a holder of a work permit class A would be required to obtain separate work permits for each company in which they hold shares.

Amendment of Section 12 – Work Permits for Refugees & Renewals of Work Permits

The Labour Amendments Act has amended section 12 to introduce the new duration of a work permit issued to a refugee, which shall now remain valid for as long as the refugee maintains their refugee status in accordance with the applicable laws in Tanzania.

Additionally, a timeframe for submitting applications for renewal of work permits to the Labour Commissioner has been introduced to be at least 60 days before expiry.

Conclusion

These amendments were introduced to create a more balanced and fair working environment for both employers and employees. They aim to address the gaps and ambiguities that existed in the principal labour laws. The reforms also serve to safeguard workers’ rights and promote standards that foster a productive and just workplace across Tanzania.