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Tanzania

Dispute Resolution and Legal Compliance

Understand dispute resolution mechanisms and legal compliance in Tanzania

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Labor courts and arbitration panels

Tanzania has a specialized Labor Court system that serves as the primary trial court for labor matters. This system includes the Labour Court, the Court Mediation Registry, and the Court of Appeal of Tanzania. The Labour Court addresses disputes arising from labor and employment relationships, such as unfair termination, unpaid wages and benefits, breach of employment contracts, discrimination and harassment, and disputes arising from collective bargaining agreements.

The Labor Court Process

The process of the Labour Court involves several steps. First, a claim is filed with the Labour Court, including required details and supporting documents. Disputes may then be referred to the Court Mediation Registry for resolution attempts. The court holds a formal hearing with evidence and testimony, after which it issues a binding decision. Decisions may be appealed to the Court of Appeal of Tanzania.

Arbitration Panels (The Commission for Mediation and Arbitration)

The Commission for Mediation and Arbitration (CMA) is an independent statutory body tasked with resolving labor disputes through mediation and arbitration. The CMA handles disputes concerning "rights" covered by the Employment and Labour Relations Act, such as payment disputes and unfair dismissal.

The CMA Process

Disputes can be referred to the CMA by parties involved or by order of the Labor Court. The CMA first attempts to resolve disputes through mediation. Unsuccessful mediation cases proceed to arbitration, where the arbitrator issues a binding award.

Typical Cases Handled

Labor Courts and the CMA commonly address the following types of cases: unfair termination, wrongful dismissal, disputes over wages, benefits and unpaid overtime, breach of employment contracts, discrimination and harassment claims, and interpretation and enforcement of collective agreements.

Compliance audits and inspections

Compliance audits and inspections in Tanzania play a crucial role in ensuring adherence to laws, regulations, and industry standards.

Who Conducts Compliance Audits and Inspections

Various regulatory bodies and agencies in Tanzania are responsible for conducting audits and inspections across different sectors:

  • Tanzania Revenue Authority (TRA): Conducts audits focusing on tax compliance (e.g., VAT, income tax, customs duties).
  • Tanzania Bureau of Standards (TBS): Responsible for quality standards enforcement, product testing, and market surveillance.
  • Occupational Safety and Health Authority (OSHA): Ensures occupational health and safety standards in workplaces.
  • Tanzania Medicines and Medical Devices Authority (TMDA): Regulates pharmaceuticals and medical devices, conducting inspections of manufacturing facilities and distribution channels.
  • Other Sectoral Regulators: Agencies such as the National Environment Management Council (NEMC) and the Energy and Water Utilities Regulatory Authority (EWURA) oversee compliance within their respective sectors.

Frequency of Audits and Inspections

The frequency varies depending on the regulatory agency and the perceived risk level of the business or industry:

  • High-risk sectors: Industries with greater potential for safety, environmental, or public health risks may face more frequent inspections.
  • Routine audits: Many regulators conduct routine audits on a scheduled basis (e.g., annually or biennially).
  • Triggered inspections: Specific events, such as complaints or reported incidents, may also trigger inspections.

Importance of Compliance Audits and Inspections

  • Ensuring adherence to laws and regulations: Audits and inspections are key for upholding national standards and protecting the public interest.
  • Maintaining a level playing field: They help ensure all businesses operate within the same rules, promoting fair competition.
  • Protecting consumers: Inspections safeguard consumer rights by ensuring products and services meet quality and safety standards.
  • Mitigating risks: Audits help businesses identify potential non-compliance areas, allowing for proactive corrective measures.

Consequences of Non-compliance

Non-compliance can lead to severe consequences, including:

  • Fines and penalties: Regulatory bodies may impose fines for violations.
  • License suspension or revocation: Businesses may lose operating licenses.
  • Product seizures and recalls: Substandard or unsafe products may be seized or recalled.
  • Closure of business: In severe cases, businesses may be forced to shut down.
  • Criminal charges: Willful violations may lead to criminal prosecution.
  • Reputational damage: Non-compliance can tarnish a business's reputation.

Reporting and whistleblower protections

In Tanzania, there are several avenues for reporting various violations in the workplace and beyond. Many companies have internal policies and procedures encouraging employees to report misconduct within the organization. These may involve reporting to supervisors, human resources, or dedicated compliance/ethics hotlines. Individuals can also report violations directly to the relevant regulatory body, such as OSHA for safety concerns or TRA for tax-related issues. In the case of serious or criminal violations, reporting to law enforcement agencies like the police or the Prevention and Combating of Corruption Bureau (PCCB) may be necessary. Non-Governmental Organizations (NGOs) focused on anti-corruption, labor rights, or specific sectors may have dedicated channels for reporting violations and offer support.

Whistleblower Protections in Tanzania

While Tanzania offers some whistleblower protections, their implementation and effectiveness can sometimes be limited. The Whistleblower and Witness Protection Act (2015) provides the primary legal framework for whistleblower protection in Tanzania. It prohibits retaliation against whistleblowers who report wrongdoing in good faith. Forms of retaliation include dismissal, demotion, harassment, discrimination, etc. Sector-specific laws may offer some whistleblower protections, such as the Employment and Labour Relations Act.

Practical Considerations

Many workers may not be fully aware of their rights as whistleblowers. Despite legal protections, whistleblowers may still face retaliation in practice. Enforcement of whistleblower protection laws may be inconsistent. Advocates call for stronger whistleblower laws and improved implementation.

Recommendations for Whistleblowers

Meticulously gather evidence to support your claims. Consult with legal experts or NGOs specializing in whistleblower protection for guidance. Carefully consider the most appropriate and potentially safest reporting channel given the circumstances.

International labor standards compliance

Tanzania, as a member state of the International Labour Organization (ILO), has ratified a significant number of core ILO conventions. These conventions shape Tanzania's labor laws and regulations. Key ratified conventions include the Forced Labor Convention, Freedom of Association and Protection of the Right to Organise Convention, Right to Organise and Collective Bargaining Convention, Equal Remuneration Convention, Abolition of Forced Labor Convention, Discrimination (Employment and Occupation) Convention, Minimum Age Convention, and Worst Forms of Child Labour Convention.

Domestic Legislation and Alignment with Conventions

Tanzania's domestic legal framework enshrines fundamental labor rights and protections. Key laws include The Constitution of the United Republic of Tanzania, Employment and Labour Relations Act, and Law of the Child Act.

Areas of Compliance and Challenges

Tanzania demonstrates compliance with international labor standards in various areas, but also faces ongoing challenges.

Compliance

Tanzania's domestic laws align broadly with ratified ILO conventions. Workers and employers generally have the right to form and join organizations. Collective bargaining mechanisms exist, though their utilization may be limited in some sectors.

Challenges

Despite legal prohibitions, child labor persists, particularly in the agricultural and informal sectors. Discrimination in employment, based on gender, disability, and other grounds, remains a concern. Instances of forced labor, particularly in domestic work, mining, and fishing, have been reported. Weak enforcement mechanisms and limited resources hinder full implementation of labor laws and regulations.

Ongoing Efforts

Tanzania recognizes the need to address labor challenges and works with international organizations and domestic stakeholders. Efforts are made to implement National Action Plans aimed at addressing child labor and forced labor. Tanzania actively participates in ILO programs and initiatives. The country is also working to improve labor inspection capacity to better enforce compliance.

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