The CMA first, then the Labour Division of the High Court

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And the employer carries the burden of proof.

In this guide
  1. Where to go
  2. The burden of proof
  3. The Code of Good Practice
  4. Common grounds
  5. What to gather
  6. Where an agreement was reached
  7. Section 37
  8. Act promptly

Tanzania has a structured dispute framework, with mediation as the standard first step.

Where to go

  1. The Commission for Mediation and Arbitration
  2. The Labour Division of the High Court

The burden of proof

Worth repeating because it shapes everything: termination is unfair if the employer fails to prove the reason was valid and related to conduct, capacity, compatibility or operational requirements.

You are not required to prove it was unfair. They must prove it was fair.

The Code of Good Practice

An employer, arbitrator or the Labour Division takes any Code of Good Practice into account in deciding whether a termination was fair.

Rule 9(1) requires a fair procedure. Rule 24(1) requires agreed selection criteria in retrenchment.

Common grounds

  • Termination without a written notice
  • Retrenchment without consultation on alternatives
  • Selection criteria imposed rather than agreed
  • Severance calculated on the wrong basic wage or divisor
  • Transport allowance omitted
  • Leave pay from an incomplete cycle not included
  • Certificate of service not issued
  • NSSF deducted but not remitted
  • Discrimination under Section 7(4)

What to gather

  • Your contract, written or evidence of an oral one
  • Payslips showing basic wage
  • Evidence of your start date — one year qualifies, ten years caps
  • The termination notice and its stated reason
  • Records of any consultation in a retrenchment
  • Your NSSF statement
  • The settlement calculation provided

Where an agreement was reached

A retrenchment agreement is binding as a collective agreement under Section 71(3)(c). If the employer departed from it, that is enforceable.

Section 37

Sets out the grounds, procedures and remedies for unfair termination, and its provisions must be observed by both parties.

Act promptly

Records are easier to assemble close to the event, and procedural objections carry more weight raised while a process is still live.

Frequently asked questions

Where do I take an employment dispute?
The Commission for Mediation and Arbitration first, then the Labour Division of the High Court.
Who has to prove the termination was fair?
The employer. Termination is unfair if they fail to prove the reason was valid and related to conduct, capacity, compatibility or operational requirements.
What are common grounds for a claim?
No written notice, no consultation, imposed selection criteria, wrong severance basis, omitted transport allowance, missing incomplete-cycle leave pay, or no certificate of service.
What should I gather?
Your contract or evidence of an oral one, payslips showing basic wage, start date evidence, the termination notice, consultation records, NSSF statement and the settlement calculation.
Is a retrenchment agreement enforceable?
Yes. It is binding on the parties as a collective agreement under Section 71(3)(c), so departure from it is enforceable.

Sources

Put this into practice

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