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Tanzania decisions
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The applicant was unfairly terminated without compliance with mandatory procedures under section 37 of ELRA and Code of Good Practice; compensation for remaining contract period is warranted.
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The arbitrator erred by departing from the agreed issues and applying the doctrine of frustration to a contract already mutually terminated. The parties were bound by the Mutual Agreement Regarding Termination of Employment, and the respondent breached this agreement by failing to pay the agreed compensation after BOT's revocation of vetting. The applicant is entitled to the compensation specified in the mutual agreement.
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General damages are not available as a remedy for unfair termination under the Employment and Labour Relations Act; the High Court erred in awarding general damages in the absence of specific pleadings and proof, and the proper remedy is compensation for the unexpired term of the contract as awarded by the CMA.
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Court of Appeal of Tanzania held the CMA had jurisdiction over a breach of employment contract claim, but reduced damages and disallowed unproven allowances.
The respondent breached the applicant's fixed term employment contract by terminating him without justification and without following proper procedures. Oral evidence sufficed to prove termination, and the arbitrator erred by requiring documentary proof.
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The court found that the respondent did not breach the applicant's employment contract; the termination of the applicant's position resulted from the client's (Princess Leisure (T) Limited) termination of services with the respondent, not from any unlawful act by the respondent. The evidence (exhibits G2 and G3) did not amount to termination or breach by the respondent, and the respondent acted reasonably by attempting to resolve the matter and offering alternative placement.
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The respondent's employment contract was a fixed term contract that expired automatically on the agreed date. There was no reasonable expectation of renewal as each contract was for a different position and terms. The Arbitrator erred in holding there was a breach of contract and in awarding compensation. The employer was not required to issue notice or pay salary in lieu of notice upon expiry of the contract.
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The High Court upheld a CMA award, finding the employee willingly signed a mutual separation agreement and failed to prove fraud, undue influence, or further salary claims.
There was no termination by agreement as the employer unilaterally decided to terminate the contract under the guise of agreement to avoid statutory retrenchment procedures; the Arbitrator properly awarded general damages considering the Respondent's age and circumstances, and the Applicant's objections were afterthoughts.
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The failure to properly admit exhibits, including the employment contract, was a fatal irregularity that denied the applicant the right to be heard and rendered the proceedings and award invalid.
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