CONSOLIDATED REV NO 24119 AND 24269 OF 2024 ST

CONSOLIDATED REV NO 24119 AND 24269 OF 2024 ST

The Respondent was constructively terminated due to the Applicant's unilateral 25% salary reduction without consent and failure to pay the 20% acting allowance, both of which constituted fundamental breaches of the employment contract. The Respondent did not accept the altered terms, and the intolerable conditions left resignation as the only reasonable option. The acting allowance is a separate entitlement and not to be offset by other allowances.

Citation
CONSOLIDATED REV NO 24119 AND 24269 OF 2024 ST
Parties
Applicant/respondent: St. Joseph University of Tanzania; Respondent/applicant: Professor Felician Tungaraza
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
1 January 2024
Procedural Posture
Labour Revision / Judgment After Consolidated Revision Applications
Outcome
Revision No. 24119 of 2024 dismissed; Revision No. 24269 of 2024 allowed; constructive termination found.
Legal Topics
Constructive Termination, Employment Contract, Salary Deduction, Acting Allowance, Severance Pay
Source Language
English
Labour Law Employment Law Constructive Termination Employment Contract Salary Deduction Acting Allowance Severance Pay

Case Brief

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Parties

St. Joseph University of Tanzania

Applicant/respondent

Professor Felician Tungaraza

Respondent/applicant

Procedural Posture

Labour Revision / Judgment After Consolidated Revision Applications

Legal Issues

  1. 1 Whether the Arbitrator erred in awarding 20% acting allowance to the Respondent
  2. 2 Whether there was constructive termination of the Respondent's employment due to salary reduction and non-payment of acting allowance
  3. 3 Whether the unilateral salary reduction constituted a breach of contract

Ratio Decidendi

The Respondent was constructively terminated due to the Applicant's unilateral 25% salary reduction without consent and failure to pay the 20% acting allowance, both of which constituted fundamental breaches of the employment contract. The Respondent did not accept the altered terms, and the intolerable conditions left resignation as the only reasonable option. The acting allowance is a separate entitlement and not to be offset by other allowances.

Court Disposition

Revision No. 24119 of 2024 dismissed; Revision No. 24269 of 2024 allowed; constructive termination found.

Orders

  • Applicant to pay Respondent TZS 192,552,313.84 subject to tax deduction, covering compensation for remaining contract period, severance allowance, and one-month salary in lieu of notice.
  • CMA's award of acting allowance upheld.