- Overview: Tanzania
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Contractor vs. employee: which is better?
Global HR Compliance in Tanzania
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Tanzania Guide below will help you understand the nuances of labor legislation in the country.
Companies hire international workforce for various reasons but in most cases they are:
- entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
- hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.
Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.
If you intend to hire and pay your foreign workforce in full compliance with labor laws and regulations of Tanzania, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Tanzania and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.
We are experts in global workforce employment in Tanzania, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Tanzania.
See Hiring and Firing Workforce in Tanzania Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Tanzania or would like to get more details.
Hiring and Firing Workforce in Tanzania Guide
# Employment contracts
A contract with an employee shall be of the following with types:
- a contract for an unspecified period of time;
- a contract for a specified period of time for professionals and managerial cadre;
- a contract for a specific task.
A contract with an employee shall be in writing if the contract provides that the employee is to work outside the United Republic of Tanzania.
# Minimum (Statutory) Employment Rules and Regulations in Tanzania
# Hours of work:
The maximum ordinary working hours that an employee is allowed under the law to work is forty five (45) hours meaning nine (9) hours a day. The nine hours are exclusive of the one hour daily lunch break. The lunch break is to be provided after five hours continuous working time. Lunch break is unpaid time and is the employee’s own time because they are not paid for lunch breaks.
# Probation period:
There is no explicit provision in the Employment and Labour Relations Act 2004 about 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.
# Annual leave:
An employer shall grant an employee at least 28 consecutive days’ leave in respect of each leave cycle, and such leave shall be inclusive of any public holiday that may fall within the period of leave.
A less than six-month employee will not be entitled to a paid holiday under employment conditions and employment relationships. This will not involve a worker employed on the basis of a campus or employee, who has less than six months of service and who has done more than once a year.
# Parental leave:
Women have the right to at least 12 weeks (84 days) of the maternity leave or 100 days (in the twin state). A pregnant worker should inform the carpenter and provide a medical certificate 3 months before proceeding with the Parental Vacation. She may start a contraceptive vaccine four weeks before the date of care or earlier if the doctor will confirm that it is important for her or her child. Also, the employee is not allowed to work within 6 weeks of baby birth unless the doctor has allowed him.
An employer should give birth to a contraceptive worker and pay her four times during her service.
# Sick leave:
An employee shall be entitled to sick leave for at least 126 days in any leave cycle.
The sick leave referred to in subsection shall be calculated as follows:
- the first 63 days shall be paid full wages;
- the second 63 days shall be paid half wages.
Any hour (s) in excess of the forty five hours must be compensated as overtime hours. It is also prohibited for an employee to work more than twelve hours in a day. An employer will be required to pay you one and one half times your ordinary wage for any overtime worked. In event the overtime hours are worked on a resting day or on a public holiday then the employee will be compensated at the rate of double ordinary rate for every hour worked.
# State minimum salary:
Tanzania’s minimum wage is set by categories covering various employment sectors. The minimum wage ranges from 40,000 Tanzanian shillings per month to 400,000 shillings per month. Tanzania’s minimum wage was last changed in January 2013.
# Employee dismissal:
Termination of employment can be initiated by any of the parties to a contract of employment. Lawful termination of employment under common law includes:
- Termination of employment by agreement: When the employer and employee agree to bring a contract of employment to an end in accordance with an agreement. For example, if there is a contract for a period of one year and the agreed period expires then the contract will obviously come to an end.
- Automatic Termination: A contract of employment may be terminated automatically in circumstances such as death or loss of business of the employer.
- Termination of employment by the employee/Resignation: This happens when an employee due to material breach of the contract by the employer decides to resign from her employment.
- Termination of employment by an employer: An employer may also terminate the employment of an employee but there is a need to comply with the provisions of the law and contract relating to termination.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Tanzania by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.