Introduction

Recent amendments to the Employment and Labour Relations Act [Cap. 366 R.E. 2019] (ELRA) and Labour Institutions Act [Cap. 300 R.E. 2019] (LIA), with reference to the Non-Citizens (Employment Regulation) Act [Cap.436 R.E 2019] have introduced significant reforms to promote fair labour practices, protect vulnerable workers, and improve regulatory clarity. The amendments are contained in the Employment and Labour Relations (Amendment) Act, 2024 and the Labour Institutions (Amendment) Act, 2024 and became operational in January 2025.

1. Extended Maternity and Paternity Leave for Parents of Premature Babies

Legal Reference: Section 33(1) of ELRA, as amended

• Mothers of premature babies are now entitled to maternity leave until the child attains 40 weeks of gestation, as opposed to the standard 84 days.
• Fathers are now entitled to 7 consecutive days of paid paternity leave, up from 3 days.
  This change ensures adequate support and care for premature infants and their families.

2. Expanded Definition of Specified Period Contracts

Legal Reference: Section 14(1A) and (1B) of ELRA, as amended
The definition of “employment for a specified period” has been clarified and expanded to legally include:

• Recent graduates seeking work experience;
• Employees on time-bound projects;
• Seasonal employees;
• Non-citizens with limited-duration work permits;
• Retired individuals re-engaged after retirement;
• Individuals in externally funded programs or donor-supported positions.
  This reform protects contract workers and reduces ambiguity in employment terms.

3. Formalization of Unpaid Leave Entitlement

Legal Reference: Section 33A (new provision) of ELRA

Employees may now apply for unpaid leave of up to 30 days, extendable under conditions prescribed by the Minister responsible for labour through regulations.

This addresses previous inconsistencies due to the lack of statutory guidance on unpaid leave.

4. Suspension of Disciplinary Action During Pending Labour Disputes

Legal Reference: Section 41A (new provision) of ELRA

Employers are barred from initiating or continuing disciplinary action against an employee where the same matter is pending before the Commission for Mediation and Arbitration (CMA) or the Labour Court.

This prevents abuse of process and protects employees from double jeopardy.

5. Flexibility During Emergencies (Lesson from Covid-19)

Legal Reference: Section 15A (new provision) of ELRA

Employers and employees may enter into temporary workplace arrangements in response to emergencies such as:

• Infectious disease outbreaks;
• Natural disasters; or
• Government-declared emergencies.
  Such arrangements must be mutually agreed and documented in writing.

6. Compensation for Breach of Fixed-Term Contracts

Legal Reference: Section 40(1)(c) of ELRA, as amended

Where an employer unlawfully terminates or materially breaches a fixed-term contract, the employee is entitled to compensation equivalent to the remuneration for the remaining term of the contract.

This amendment provides greater security for contract-based employment relationships.

7. Enforcement of Compounding Penalties through Government Fund Payment

Legal Reference: Section 55A of LIA, as amended

Any person who settles a labour violation via compounding (i.e., out-of-court settlement with the Labour Commissioner) must now pay a TZS 100,000 penalty into the Government Consolidated Fund, unless otherwise exempted by the Minister for Finance.

This ensures accountability and transparency in penalty settlements.

8. Simplified Work Permit Procedures for Class A Holders

Legal Reference: Section 11(5) of the Non-Citizens (Employment Regulation) Act, as cross-referenced in LIA amendments
Holders of Class A permits (investors/shareholders) are now permitted to work in multiple affiliated companies, provided they obtain:

• Written authorization from the Labour Commissioner; and
• A valid TRA Tax Clearance Certificate.
  This removes bureaucratic hurdles and supports ease of doing business.

9. Recognition of Refugees’ Right to Work

Legal Reference: Section 11A (new provision) of the Non-Citizens (Employment Regulation) Act, referenced via the LIA amendments
Refugees may now be issued work permits valid for the duration of their refugee status.
Renewal applications must be filed at least 60 days before expiry, enhancing legal certainty for both the employee and employer.

Conclusion

The 2025 labour law amendments mark a progressive shift in Tanzania’s labour regulatory framework, supporting both economic inclusivity and employee rights. Employers, HR practitioners, legal professionals, and investors are advised to review and revise contracts, workplace policies, and compliance systems considering these changes.

For further clarification or legal support on labour and employment matters, please feel free to contact Ardean Law Chambers. We are available to assist with compliance reviews, policy updates, and advisory services tailored to your organization’s needs.