20140821 TZHC Dar es Salaam

20140821 TZHC Dar es Salaam

An employee on probation is not protected by unfair termination provisions of the ELRA; thus, constructive dismissal principles do not apply. However, probationary employees are entitled to fair treatment and may be compensated for mistreatment, but not under Section 40(1) ELRA. The Arbitrator's finding of unfair termination and award of 19 months' salary was improper and is quashed; compensation is limited to 6 months' salary for ill treatment.

Citation
20140821 TZHC Dar es Salaam
Parties
Applicant: National Microfinance Bank PLC; Respondent: David Nzaligo
Court
TZHC
Jurisdiction
Tanzania
Judgment Date
21 August 2014
Procedural Posture
Labour Revision / Judgment on Revision From Commission for Mediation and Arbitration
Outcome
Application partly succeeds; finding of unfair termination and award of 19 months' salary quashed; compensation limited to 6 months' salary for ill treatment.
Legal Topics
Probationary Employment, Constructive Dismissal, Unfair Labour Practices, Compensation for Ill Treatment
Source Language
English
Labour Law Probationary Employment Constructive Dismissal Unfair Labour Practices Compensation for Ill Treatment

Case Brief

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Parties

National Microfinance Bank PLC

Applicant

David Nzaligo

Respondent

Procedural Posture

Labour Revision / Judgment on Revision From Commission for Mediation and Arbitration

Legal Issues

  1. 1 Whether an employee on probation is protected under Section 36(a)(ii) of the Employment and Labour Relations Act (ELRA)
  2. 2 Whether an employee on probation is entitled to fair treatment and relief for mistreatment
  3. 3 Whether the respondent was subjected to mistreatment/unfair labour practices

Ratio Decidendi

An employee on probation is not protected by unfair termination provisions of the ELRA; thus, constructive dismissal principles do not apply. However, probationary employees are entitled to fair treatment and may be compensated for mistreatment, but not under Section 40(1) ELRA. The Arbitrator's finding of unfair termination and award of 19 months' salary was improper and is quashed; compensation is limited to 6 months' salary for ill treatment.

Court Disposition

Application partly succeeds; finding of unfair termination and award of 19 months' salary quashed; compensation limited to 6 months' salary for ill treatment.

Orders

  • Arbitrator's finding of unfair termination quashed.
  • Award of 19 months' salary quashed.