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Tanzania Judgment

TZCA

19900911 TZCA Mbeya2

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Source document

01

Holding and result

The appellant's employment contract did not guarantee payment of salary or benefits up to retirement age upon early termination; only statutory payments and pension fund contributions for the period worked are payable.

Court disposition

appeal dismissed except for pension fund claim

Orders

  • Appellant allowed to retain employer-contributed pension fund already paid
  • No entitlement to salary or benefits up to retirement age
  • Costs as per suit

02

Material facts

Parties

Twiksyegge Mwazigombe

Appellant

Nboye Regional Routing Co. Ltd.

Respondent

Amounts and remedies

  • Salary Up to Retirement Age Claimed: TZS 316,800
  • Employer Pension Fund Contribution: TZS 1,148.7
  • Total Claim: TZS 327,948.7

03

Procedural history

  1. Posture

    Civil Appeal / Final Appellate Judgment

04

Questions and positions

Legal issues

Party arguments

Applicant
Appellant argued he was entitled to salary, pension, and other benefits up to the compulsory retirement age of 55 due to permanent and pensionable employment status, and claimed wrongful dismissal contrary to ministerial order.
Respondent
Respondent contended that the employment contract allowed termination by either party with three months' notice or payment in lieu, and denied entitlement to continued salary or benefits beyond termination except statutory payments and pension fund already paid.

05

Court’s reasoning

  1. 01

    Employment Act and Contract Act, Section 73, Cap 433

    Every contract must be understood in its provisions and binding terms; no entitlement exists beyond explicit contract terms.

  2. 02

    Letter of appointment and statutory interpretation

    Termination of employment by notice or payment in lieu is valid and does not entitle employee to future earnings up to retirement age unless expressly provided.

06

Ratio, limits and disposition

Ratio decidendi

The appellant's employment contract did not guarantee payment of salary or benefits up to retirement age upon early termination; only statutory payments and pension fund contributions for the period worked are payable.

Obiter and limits

  • If contracts guaranteed payment up to retirement age regardless of termination, any employee dismissed could claim future earnings, which is not the law.
  • Appellant was properly paid pension fund contributions for period worked, not anticipated pension.

Court disposition

appeal dismissed except for pension fund claim

  • Appellant allowed to retain employer-contributed pension fund already paid
  • No entitlement to salary or benefits up to retirement age
  • Costs as per suit

Source and reliance status

TZCA · 11 September 1990

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Judgment reading view

Judgment text

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Source document

TZCA

Judgment· 11 September 1990

19900911 TZCA Mbeya2

I' c ;~nd IfriZ..V.•S J, ;-., I. crvn .'.1-'P:S..L N0.15 OF 1990 ooooeec• NJB3'Y.:.. :.:CGIONJ... R'J)IlTG CO. LTD. • , • • • • • JJSPOND:::;NT (;.ppoc..l fron tllc Docision of tho Tiigh CQµr-t of 'I'e,nzc.nia 2-t Nboyc.) ( tt.~oso 2 J.) d2.ted tho 2nd o..c.y of DoccrJbor, 1988 •. .:_c·~,,_ Civil ·cr:.so Ho.· 4 of 1988 JUI'IJJ .;JNT OF TI·C GOUR 7 OM.IB , J. :~. : rr-Twiing Cor.1p2J1y, for wrongful dis ::iiss:,l fron ~~is so:rvico vr~·.ic~1 w:---,s on He is now ::..ppe2.ling to tl1is Cou:cto T~1;:; cvic"i.unc<c b;r t~:c c:,ppollc.nt ::i,nd l1is ( 0r.rployer 1 s reproso11t2.tivo disclosod. t',.::.'..t Twik:-..sycgc T,1w2-igo::ibo wc.s o::;ployod by tho . . . . . _:;sic-c.·~~·1-: .·:.ccount.c.nt. llis sGrvicos woro tcrL1in..,tod on 20.,S.35 tbrou,::;~i 11h::.t Ew:.,i.;o::ibo clc.ir.1s -',o : . . ct_ c.,nd tl10 IIinistcr-i:.,l o:rdor, t'.,011 t:s,:;ro .-r,s :,o .:,lt-crn.:.tivc but for J..T.Co to be 2.nswc:rc.'clo to t2.:o consequences of tl10 'brc ---,cl1 of Contr::.ct 2.s per Secti<:>n 73 of tho 12.H of Contro.ct .'.ct C·,p 433 of our 12-us. T~1e d.c.,::2{;'CS ,;;, Mr. Mw2.igo::i'bo in l1is plc.int.. clci;:1s :.ro ::;s follo1-rs: - •

I

I I I 2 I I .. .-(,.-) ·11l= vu::J. D41-0vc.J.ont to t;.0 _,_.-,;01n1.t of s:::.l::..ry th::. t would b.::.v-c :;,cc:c u:-JC. to 1: i:.: until t l:c r (n:pir;y· of tl:o contr ·.c: .--,t t.:1c CorJ;>uJ.sory ' rotircr.1cn>t c..go of 55 ,,: . i c: is S:1s. 316, 800/-. (b) ?c.xc.stct~l Pension I'und Contributod by to cqloyc.r S~•..D,148. 70/=. 'l'ot,:.l 327,948. 70/ = ' ,•: f (c) S.::.ln.ry ~ s c..nd :::.rro;-:.rs froo 20/8/85 up to. d2.tc I (d) Intorosts on tl":o d.001'-.:t:-.l ,.::·.ount fron i I tb.c d.c:w o:f filj ng t~;is s11it until full t i pn.y::icnt (e) Cost o~ ttis suit (f) ~ny other rcliofo ( It is cssentio.l thn.t tt.o t0r;.1s cont::i.inod in e~.~ployors lotto:r of c.~riain+.::1QJ1t._ i p.:i.rt -~ I l Dxb.i'bii; P.1 s:1ould bo ~1;~~"1;tu~: ~-'b.G :rolo~rrt. : tho:roof L I i ''On Sc.tisfc,ctory Co~.:plc.tion •f probdioro.ry period, you will' be· c;:(;:mfj.J:'ced in your c,ppo- int;1cnt ,,nc. -'.,htHafter eit21.er Gi-cc ;.:cy ter:Jin:-..t0 t~1.: .::.:;ipoint:.1ont by 6 5.ving throe □ ont:1s notic.:: or 1_:--,;_y--::·.;.;·.:t of ·or,o :.1cmt~1. 1s sc.1.:-.ry in lieu of no-~ico~ 11 bec;-..use. r..is cr.1ploy;:iont is :pcr,1c.nor,:t .::.nd. po:-1sion-:t1e :.nd t:::-.t :.-.e h:.s l 10 ye::.xs of sorvicc ye+, to cor.,;_1l0to 'oofor:i he re ·,c~.Gs t:.1c -,e,o of 55 y9-.rs J wllcn he would cor.1pulsorily retire. i;(' 'I;:,is w::.-:-.t i-,:i,. Hw:.igo::::'.:>e

underst.c..nd.s be his Contr:-..ct o:f 3crvice wi tb :'.;boy~ :l.: '-'. C, I.':r. i-1w:-..igo~_;;x:: :::.d..:"Ji ts his cnploy:JEmt when ~1is cor.11x:.ny did not wis:: to .,'::lid.o ty t::o :lhnisteric.l t . order to roinstc.te hiD in the sorviCB. i. .. :ZVon t~10 P.:-:.:r.::st.:-.t:;.l P~msion • • .F·.,·n,~ <.>'f Sh.R. 11 ♦ i ~ 70 co.nt.tibu~cd by hi~ 0;:;plcyor w::-,s :9.:.id to hi,o t~is Couxt t::o :receipt for it.: T!:is 'P2.1•c-,st.:--td Ponsion Fund. wc:.s. rejected. by t:'.lo tri::l Couri _on t~1e oistcicon tc].icf t'.:,::t it represented the ... oQl'r\\:J:-!"P\!(~.-icw1 -:!:'r):i.: ~ 7'Pu;:;i,»i~1-0 .yo.tu:·s -w~inh J.e h.:-A noi:. )l'.Ork;ed for but ,· ••• /3 3 beliov:.Js ;.10 is entitled to its s·.Lry ~ ot:icr bvncfits~ :..ctu.::.lly this p.::.yr.;ont wr.s for +,~ie ;icriod tii-:..t h~ uorkod since his confirontion in his ooployr:;ont to t~o d~tc qf his• ~erwinotion of ..... • ,~"" - a • / sorvice. Other pnyoonts n:.dc to hi□ ·:-..:ro1 t!10: net ~9-l,--XY_ ~or'\ 12 ;:;6nths, I . , :; .. .. . .,,: ',....... .-, ,. .....·_:,·;• ;, ·:.·... c~ J the st~tutory coopenea;tiort~ ono ;;ont!1s s~l~-~}~ ~~o~ o_~-... 1!~Jf~~"-ie;,f. ~~.:,~f~ r:• ~ • -- I l)Cyoohts in •liou of a.rra~s of lc:-.vo foz: the ycr.:rs 1983j -1984 .::.nd 1985.·,; ·: ·. - r • ....- • • - _... • • • ••: .~• """"-,;:-•,..,• ,,. •• ' • 1 • • • • • • - •' • • .• .'', -,~,: He w.:.s c.lso pc.id Re.ilwcy bu~

f~e for b.ir.1 nnd his fonily _to his hone ·l ' I' f ' District in !{yo~ ruid tl,onsp~rtciion o~ '';'• t~st~f~~\ . /~: 1f ~\s c.:i.n bG soon :fro□ t:io e~tr.:-,ct of .ti~ lot tor of .'.l.pfbintoorrt :' ;,{]~:._:· • A~ . . ' .. ···~~~~- .· ,. . j~·"_;_ ,\ r I quoted .e~lior, tho Contr~t of e□ployn;;nt between tho p.:i.rtios lw.id d~wn.:i. ;, . . thc.t at c.ny tiwC either ~ide my tornin-:,to tho o::.ployoont by- giving the,.;,~.;:·:.:'. ,_,;;,;.... •.••. ·:-7 :--:•. ··.• ' .. ·, . -:,:.:"#/~.'·. -.. ~ ~ -·,... :-. ··• ... : . . . ,;Jt:~~~ .·:-:j; .- I. <1,, other po.rty three ::ionths notioo or po..ynol'\t of_ o~. t~~~}~\:g\., _}~'in- '. ' I' of notice., This i~ olo~ly not •-n. CoAtrn,ct~Qf~Jf-'· .' _ _ , .,... . ._ , ---~- ,..,·_:-·:::-,t~~:::~----:.-1 '.·. ,-'. "',i' . • • ~ · -~,- ·_. ~ ~ -.< -_::· ~ . ~~:~~. ;}·I\~~~:-~;;?r~i~-7:~~ ;;.:~~\ :4y.r_~~ _, ~- _: ~ . , q-- -• - - · ··· ~-r••f - J •• 4 - the ego of 55, nor docs its terQi~?,tion en~~,U:r_-fi!i9, <~prip~s69' -~~~nt :,ofJti~-f~ .. f ·.. -....,;, :.;,,, ~- ,·t-t1t:r,::,~t~:~~~}-...-f#,'.::~,, ... -~~-:-~ ;;1 ~~- the reoa.ining period 1,o the _retirill€ ~.go of 55 yoc.rst::::':If. th"iei" were tho .--~<'I·;.,~ ~ , . . ~ . . ;. ·:: ~!",.:...j•---= i, .... --· -- .... ~ ~ - ~ - - - --~ :' T'J.¥": .. co.so cny person w:.ooe sorviccs were torriindod this wo.y would be_ cb,la to, ;,.,,r.:-'.~,,_., '-~.. • . ' . -;, .,-,ti,:··

ti ,, "I, ;k~ _,, . .. t·::;.'.ii•'t. + . collect ·:s n-:-..ny future cr.rnings cs his capl?y;:?<mt with mny eJ_JPloyors d ?'~ , ~ different tL'::los ne,y por.::1it. Tho cppoll-:-..nt w!:J.o cppec.rod in. pcr~on hcd four grounds· of o.ppoo.l. but tboy c.11 boil down to tllo contonts of the socond_ gr~und.. Ho scya tho.t " ''the loc.rnod tric.l judgo orrod ~ lo.w end.. il1 f~ct whon ho fc:il0d to onkc i o. finding thc.t e,n ooployoe being on c. poi-oaiicnt c.nd pensiom'bla terot1 oe~t that ho we.a cuployed :f'or 2. period UJ? to_ :his tL;o of ro'tirooont"~ . :,fo 2.ro of t:10 fir::1 view th.::.t t::o ha.rr_ic_d. t_r_:inl judge ~u-eotad hinself ,, properly and an:.lysod .:i.11 the rolov~nt provisio_ns· of B;:;ployoont .'J.ct, end··· .... \, ' ·:-.:~\~{~< . t!le Cantre.ct ..~ct 1 rolevc.nt. t.Q tho cb9plcint. of tho- ~ppellnnt, crtd ·.:i.rrivod . ·at the right decision t!lat every contr1ct tlUSt bo understood in its provisions ~ . . o.nd its binding tor~s, pd tbn.t there w.-:11 nb such ~revision in t~e lotter~ ' I of ..:.p-po.int.nent of t!ie c:ppella.n-\ vhich would ontitla hio to be ~id oontinun.lly,' · , .. . ; '- • / "" ' ' : ' 4 cooe whc.t n:--.y, up to tho .-:.go of ~1is :rctixc..:ient, Ic.l tlioU{P his services wore tor□ in~tod 10 yc;:-;rs oc.rlier. We e.ro in full agre(;lr:icmt with tl].i§ decision of t!lo Iligh C~~t, ·. _ I .. - AA~ .· c.nd wo disciss tho :::.ppc;:.l

except for t~:c ?=.r::-..stc.t~l ?cnsionKontributod by his cr.1ployor w!:lich f'Or the purposes of record we c:.llow end \i:J.ich tho I • o.ppello.nt !ms c..lre:::.d;y boon pc.id. T'...iis is distinct froo cntioipc.tod Pens~ poJti-lxr ~ ~ ,Q~t' e,os-fs, DJ.T:ID ~t NBJ:Y.t.. t!"lia -i1th do.y o(•·S~ptooborJ 1990 • . .. .(. , I L.M. M.'.K.:'JIID · JUJTIC:.: OF !.PPE.:i.L J .• u.:.• OM.:'.R JU-3TIC2 OF .'..P:?D.:.L N. S, ?,Il{Z:,.V.'.S · JUSTICD OF .:PPE.'.L I ,I 'I ll" •. I.

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Authorities

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Cases, legislation, regulations, and constitutional provisions identified in the available record.

Employment Act

Legislation

Legislation referenced in the available case record.

Contract Act Cap 433 Section 73

Legislation

Legislation referenced in the available case record.

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