david l mwakasala others vs mcc ltd 2020 tzhcld 221 5 august 2020

david l mwakasala others vs mcc ltd 2020 tzhcld 221 5 august 2020

The court held that the phrase 'one month basic salary for each year of service to a maximum of 12 months' in clause 18.3.0 of the collective agreement requires the use of the last basic salary at the time of retrenchment for the calculation, not the aggregation of salaries from previous years. The complainants were underpaid because the employer used an incorrect salary basis.

Citation
david l mwakasala others vs mcc ltd 2020 tzhcld 221 5 august 2020
Parties
Complainants: David L Mwakasala and 12 Others; Respondent: MCC Limited
Court
TANZLII
Jurisdiction
Tanzania
Judgment Date
5 August 2020
Procedural Posture
Labour Complaint / Judgment
Outcome
Complainants' claim upheld
Legal Topics
Collective Bargaining Agreement, Retrenchment, Terminal Benefits, Interpretation of Contractual Clauses
Source Language
English
Labour Law Collective Bargaining Agreement Retrenchment Terminal Benefits Interpretation of Contractual Clauses

Case Brief

Summary, issues, holding and outcome

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Parties

David L Mwakasala and 12 Others

Complainants

MCC Limited

Respondent

Procedural Posture

Labour Complaint / Judgment

Legal Issues

  1. 1 Whether the complainants were underpaid when being paid their loss of income compensation as per the collective agreement

Ratio Decidendi

The court held that the phrase 'one month basic salary for each year of service to a maximum of 12 months' in clause 18.3.0 of the collective agreement requires the use of the last basic salary at the time of retrenchment for the calculation, not the aggregation of salaries from previous years. The complainants were underpaid because the employer used an incorrect salary basis.

Court Disposition

Complainants' claim upheld

Orders

  • Respondent to recalculate and pay the complainants' compensation for unexpected loss of employment using the last basic salary on termination (31st December 2016) for up to twelve months as per the collective agreement.