Assessment of the Legal and Institutional Framework Governing Termination of Employment Contract in Tanzania’s Private Sector.

Mkwama, Nassoro Ally (2025) Assessment of the Legal and Institutional Framework Governing Termination of Employment Contract in Tanzania’s Private Sector. Masters thesis, The Open University of Tanzania.

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Abstract

This study assessed the legal and institutional framework governing termination of employment contracts in the private sector in Tanzania. It specifically examined the adequacy and the effectiveness of the section 40(3) of the Employment and Labor Relations Act, 2004 and institutions in protecting the right to work to employees and ensuring fair termination practices in the private sector. The study employed a doctrinal analysis, where relevant domestic legislations, international instruments, and reports were examined to position the discussion to a broader perspective. This approach ensured a thorough analysis of the complex socio-legal issues surrounding the employee‟s rights and termination of employment contracts in the private sector. A comparative approach was also employed to benchmark the existing legal and policy frameworks against international best practices and standards. The study revealed that Section 40(3) of the ELRA not only contradicts the Constitution, particularly the right to work and the right to receive fair remuneration, but also violates Article 4 of the ILO Convention and Section 37(2) of the ELRA. These laws require termination of employment only for valid reasons and through fair procedures. This section creates a loophole that wealthier employers in the private sector can exploit to terminate poorer employees without valid reasons. Consequently, the study recommends the provision of section 40(3) to be modified in such that an employer is obliged to reinstate an employee with no option of an employer to refuse reinstatement and domestication of ILO conventions to enhance the legal and institutional frameworks thereby, promoting fair labour practices in the Tanzanian private sector.

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