Before accepting a settlement in Tanzania, work through the Section 44 list rather than looking only at the headline figure.
The five entitlements
Remuneration for work done before termination
Annual leave pay for leave not taken
Annual leave pay accrued during an incomplete cycle
Severance pay, where it applies
Transport allowance
Plus the certificate of service, which the employer must issue.
The severance calculation
Seven days' basic wage per completed year, capped at ten years counted.
In practice: gross monthly salary ÷ 26 × 7 × years (maximum 10).
Check the divisor used — 26 working days is the figure in the standard calculation.
Confirm you qualify
You need at least one year of completed service.
The four exclusions
Severance is not payable where:
Termination was for misconduct
You retired — Section 42 as amended in 2010 excludes retirees, on the basis they receive a pension
A fixed-term contract expired automatically
You unreasonably refused reasonable alternative employment after termination on capacity or operational grounds
That last one is worth pausing on
If your employer offers you another role within the organisation and you decline it without good reason, you can lose the severance entirely.
Weigh any such offer carefully before refusing.
The process questions
Was a written termination notice issued?
Was there consultation on alternatives, in a retrenchment?
Were the selection criteria agreed under Rule 24(1)?
Was a fair procedure followed under Rule 9(1)?
Transport allowance
Section 43 covers transport to the place of recruitment. It is separate from severance and often forgotten.
If you disagree
The Commission for Mediation and Arbitration, then the Labour Division of the High Court.
Remember the burden: the employer must prove the termination reason was valid.
Frequently asked questions
What should my settlement include?
Remuneration for work done, annual leave pay for untaken leave, leave pay from an incomplete cycle, severance where applicable, transport allowance and a certificate of service.
How do I check the severance calculation?
Gross monthly salary divided by 26, times seven, times years of service capped at ten. Check that the divisor used is 26 working days.
Can I lose my severance?
Yes, if you unreasonably refuse reasonable alternative employment after termination on capacity or operational grounds. Weigh any such offer carefully.
What process questions should I ask?
Whether a written notice was issued, whether there was consultation on alternatives, whether selection criteria were agreed under Rule 24(1), and whether fair procedure was followed.
What is the transport allowance?
A separate entitlement under Section 43 covering transport to the place of recruitment. It is distinct from severance and often forgotten.