Employer of Record Guide in 

Tanzania

Annual Leave

• Entitlement: 28 working days per year after 12 months of service
• Accrual: Earned monthly (2.33 days per month)
• Timing: Must be taken within 18 months of earning
• Payment: Full salary during leave
• Cash-out: Unused leave paid on termination

Sick Leave

• Entitlement: 126 days over 3 years (42 days per year)
• First 63 days: Full pay
• Next 63 days: Half pay
• Medical Certificate: Required for absences over 3 days
• Chronic Illness: Additional provisions may apply

Maternity Leave

• Duration: 84 days (12 weeks)
• Payment: Full salary
• Timing: Can start 4 weeks before expected delivery
• Job Protection: Position guaranteed upon return
• Nursing Breaks: 2 hours daily for 6 months after return

Paternity Leave

• Duration: 3 days
• Payment: Full salary
• Timing: Within 2 weeks of child's birth
• Eligibility: All male employees regardless of tenure

Compassionate Leave

• Duration: Up to 4 days
• Payment: Full salary
• Occasions: Death of immediate family member
• Additional: Unpaid leave may be granted for extended mourning

Study Leave

• Entitlement: Available for job-related education
• Duration: Varies based on course requirements
• Payment: May be paid or unpaid depending on agreement
• Conditions: Employee may be required to serve minimum period after completion

Summary

Termination Categories

Termination for Cause:

• Gross misconduct (theft, violence, insubordination)
• Repeated minor misconduct after warnings
• Incapacity due to illness or poor performance
• No notice or severance required

Termination Without Cause:

• Redundancy or operational requirements
• Requires proper notice and severance
• Must follow fair procedures

Notice Period Requirements

Notice periods vary by length of service and employee category:

Senior Management: 3 months notice regardless of tenure

Severance Pay

Severance is required for redundancy or unfair termination:

Disciplinary Procedures

Before termination for misconduct:

1. Investigation: Gather facts and evidence
2. Hearing: Employee must be given opportunity to respond
3. Decision: Based on evidence and employee's response
4. Appeal: Employee has right to appeal decision

Final Pay Requirements

Final payments must include:

• Outstanding salary
• Accrued annual leave
• Severance pay (if applicable)
• Any other contractual benefits

Payment must be made within 7 days of termination.

Retrenchment Procedures

For redundancies affecting multiple employees:

• Consultation with employee representatives
• Consider alternatives to retrenchment
• Fair selection criteria
• Minimum 30 days notice to labour authorities

National Public Holidays

Tanzania observes both secular and religious holidays:

Islamic Holidays

Tanzania also observes major Islamic holidays (dates vary annually):

• Eid al-Fitr
• Eid al-Adha
• Maulid Day (Prophet's Birthday)

Holiday Pay Rules

• Eligibility: All employees entitled to holiday pay
• Rate: Normal daily wage
• Work on Holiday: Double time plus compensatory day off
• Falling on Weekend: Monday becomes public holiday

Regional Variations

Zanzibar: Additional holidays specific to the islands

• Zanzibar Revolution Day (January 12)
• Additional Islamic observances

Mainland: Standard national holiday calendar applies

Required Documentation

Employment Contract Must Include:

• Job title and description
• Salary and benefits
• Working hours and location
• Leave entitlements
• Termination procedures
• Disciplinary procedures

Employee Documents:

• National ID or passport
• Tax Identification Number (TIN)
• NSSF registration number
• Academic certificates
• Professional licenses (if applicable)
• Medical certificate (for certain roles)

Work Permits for Foreign Workers

Class A Permit: For investors and self-employed Class B Permit: For specific employment Class C Permit: For professionals and experts

Requirements:

• Valid passport
• Employment offer from Tanzanian employer
• Relevant qualifications
• Medical certificate
• Police clearance
• Application fee payment

Legal Compliance Requirements

Registration Obligations:

• Register with NSSF within 30 days
• Obtain TIN for tax purposes
• Register with WCF for workers' compensation
• Comply with immigration requirements

Contract Language:

• Contracts may be in English or Swahili
• Key terms must be clearly understood by employee
• Translation may be required for non-English speakers

Probationary Periods

• Duration: Maximum 6 months for most positions
• Extension: Not permitted beyond 6 months
• Termination: 7 days notice during probation
• Conversion: Automatic conversion to permanent after probation

Background Checks

Permitted Checks:

• Criminal background verification
• Educational qualification verification
• Previous employment confirmation
• Professional license validation

Restrictions:

• Must be relevant to the position
• Require employee consent
• Cannot discriminate based on protected characteristics

Onboarding Timeline

Worker Classification

Tanzania distinguishes between employees and independent contractors:

Employees:

• Work under employer control and supervision
• Receive regular salary and benefits
• Subject to disciplinary procedures
• Protected by employment laws

Independent Contractors:

• Provide services under contract for services
• Invoice for work performed
• Responsible for own tax and social security
• Limited employment law protections

Misclassification Risks:

• Back payment of benefits and contributions
• Penalties from labour authorities
• Potential legal disputes

Collective Bargaining

Trade Union Rights:

• Employees have right to join trade unions
• Collective bargaining is recognised
• Strike action permitted under specific conditions
• Employers must recognise registered unions

Sector Agreements:

• Some industries have collective bargaining agreements
• These may override individual employment terms
• Consultation required for major workplace changes

Anti-Discrimination Laws

Protected characteristics include:

• Gender and pregnancy
• Race and ethnicity
• Religion and belief
• Disability
• HIV status
• Political affiliation

Workplace Harassment:

• Sexual harassment specifically prohibited
• Employers must have prevention policies
• Complaint procedures required

Cultural Workplace Considerations

Communication Style:

• Respectful and hierarchical
• Indirect communication common
• Relationship-building important

Religious Observance:

• Accommodation for prayer times
• Respect for Ramadan fasting
• Friday prayers for Muslims

Work-Life Balance:

• Family obligations highly valued
• Extended family responsibilities common
• Flexible arrangements may be needed

Remote Work Framework

Legal Status:

• Not specifically regulated by employment law
• Standard employment protections apply
• Contractual arrangements govern terms

Practical Considerations:

• Internet infrastructure limitations
• Equipment and workspace requirements
• Communication and supervision challenges
• Tax implications for cross-border remote work

What We Handle

Borderless AI manages all aspects of Tanzanian employment compliance:

• Employment contract drafting and management
• Payroll processing and tax withholding
• NSSF and WCF contributions
• Work permit applications and renewals
• Local labour law compliance
• Employee relations and dispute resolution