Employment and Labour Challenges during COVID-19

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THE LEGAL IMPLICATION OF THE PANDEMIC CORONA VIRUS (COVID-19) ON LABOUR ISSUES IN TANZANIA CONTEXT:

Key Issues:

  • What the Employment Laws in Tanzania say in a pandemic outbreak?
  • Best way forward by virtue of the law.

The global outbreak and widespread of the COVID-19 has brought about a remarkable impact in global proportions, with far-reaching implications in commerce, business and employment both domestically and internationally.

In this unexpected situation of a Global Pandemic the Tanzanian Labour Laws are silent on having specific provisions on how employee-employer relationships can be managed.

The Tanzanian Employment and Labour Relations Act No. 6 of 2004 and the Employment and Labour Relations (Code of Good Practice) Rules, 2007 has provisions that may be invoked to address employment and labour related issues that commonly arise during the state of emergencies like this Coronavirus emergency.

Some best methods that may be used by employers to mitigate this situation include unpaid leave, annual leave, sick leave, retrenchment or reduced salary payment.

  • Unpaid Leave – employer imposing unpaid leave is not directly provided in the law and for it to be most effective it must be initiated by the employee. In this situation the most appropriate way to initiate this would be by holding consultation meetings with workers and Trade Unions at work place with regard to unpaid leave but also consider other flexible working arrangements with their employees such as allowing the employee to take annual leave during these difficult times waiting for the situation to return to normal.
  • Annual Leave – The law for a 28days leave for each employee every year. Therefore, amidst this crisis the employer may opt to grant the employees annual leave and while accessing how the situation progresses.
  • Sick Leave – Specifically, the law provides for 126 days for sick leave within a leave cycle (36 months) of which 63 days are with full pay and another 63 days are with half pay. In this regard, an employee who has contracted the Corona Virus will have assured 126 sick days leave days.
  • Retrenchment – Where the crisis has brought the business to a foreclosure, a loss of income earning is a ground for the employer to adhere to law and follow the procedures for retrenchment.
  • Reduced Salary Payment – This is an alternative for the Employers to assess if the business situation continues to reduce and affect the company earnings. Though the law does not allow for unilateral change of an employee’s contract clause. An employer is advised to undertake consultative meetings with employees and trade union to agree on payment of half salaries. If there is persistence on loss of business and an employer reaches a point of total inability to pay the reduced salaries then the employer may opt for termination of employees.

Employers are therefore encouraged to review and update their policies and procedures which may be affected by the current situation including sickness and absence policies.

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