Five entitlements to verify, and the ten-year cap to apply

Before accepting a settlement in Tanzania, work through the Section 44 list rather than looking only at the headline figure.

The five entitlements

1. Remuneration for work done before termination
2. Annual leave pay for leave not taken
3. Annual leave pay accrued during an incomplete cycle
4. Severance pay, where it applies
5. 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.