HISTORICAL BACKGROUND OF SECURITY OF EMPLOYMENT ACT CAP.

Colonial Legacy and Labor Conditions

During the colonial era in Tanganyika (modern-day mainland Tanzania), labor relations were
marked by severe inequalities. Employers, particularly in agricultural plantations, mining
industries, and infrastructure projects, had near-total control over workers. African laborers faced
low wages, poor working conditions, and no job security, while the colonial administration
prioritized the interests of European settlers and companies. Labor unrest began to emerge in the
1940s and 1950s, with notable events like the Dock Workers’ Strike of 1947 highlighting the
frustrations of the workforce.

Independence and Socialist Vision

Following independence in 1961, President Julius Nyerere introduced policies rooted in Ujamaa
(African socialism), which emphasized equality, social welfare, and self-reliance. Central to this
vision was labor reform, aimed at addressing the injustices of the colonial period. The
government recognized the need to protect workers’ rights and ensure that employment would
not be arbitrarily terminated, aligning with its broader goal of promoting social and economic
justice.

Enactment of the Security of Employment Act

The Security of Employment Act was enacted in the 1960s as part of Tanzania's efforts to
transform labor relations. The Act sought to provide job security by preventing unfair dismissals
and mandating legal procedures for employment termination. It established systems through
which workers could seek redress for wrongful termination via labor tribunals. This legislation
aimed to balance the power dynamics between employers and employees, reflecting the
country’s commitment to justice and equity in the workplace.

To support the Act, labor dispute resolution mechanisms were introduced, enabling employees
to file complaints about unfair dismissals. Additionally, trade unions, which had grown
stronger during the independence movement, played a crucial role in monitoring employer
practices and advocating for workers' rights. These unions became instrumental in the
enforcement of the Act, ensuring that employers adhered to its provisions.
CAUSES OF DISPUTES UNDER SECURITY OF EMPLOYMENT .

The Security of Employment Act in Tanzania is designed to protect employees’ rights and
promote fair employment practices. However, disputes between employers and employees often
arise due to various reasons, particularly when there is a perceived violation of the rights and
obligations established under the Act. These disputes can arise from several causes, each
affecting either the employer, the employee, or both parties. The following are some of the key
causes of disputes under the Security of Employment Act:

1. Unfair Dismissal

One of the primary causes of disputes under the Security of Employment Act is unfair dismissal.
This occurs when an employee is terminated from their job without justifiable cause or without
following the proper procedures. According to Section 5 of the Act, any termination must be
based on valid reasons, such as misconduct, incapacity, or redundancy, and must follow due
process, including providing the employee with an opportunity to defend themselves. Disputes
arise when employees believe their dismissal was arbitrary or discriminatory, or when the
employer fails to provide the necessary notice or compensation required under the Act.
Employees may challenge the dismissal through the Commission for Mediation and Arbitration
(CMA) or, in some cases, the Labour Court, leading to legal disputes.

2. Breach of Employment Contract

Another common cause of disputes is the breach of employment contracts. Employment

contracts are meant to outline the terms and conditions of the employee’s work, including
compensation, job responsibilities, working hours, and other benefits. A dispute can arise when
either party fails to honor the terms of the contract. For example, an employer may fail to pay
agreed-upon wages, provide statutory benefits, or abide by agreed-upon working conditions. On
the other hand, employees may fail to meet performance expectations or fail to honor the terms
of their contract, such as taking unauthorized leave or not fulfilling job duties. When such
breaches occur, the affected party can seek redress through the CMA or other dispute resolution
mechanisms. The outcome of such disputes typically depends on the specific terms of the
contract and whether either party has violated those terms.
 3. Redundancy and Retrenchment

Redundancy and retrenchment are other significant causes of employment disputes under the
Act. These situations often occur during periods of organizational restructuring or economic
downturns. Section 6 of the Act outlines the procedures employers must follow when making
employees redundant, which include consultation with affected employees, providing clear
criteria for selection, and offering adequate compensation. Disputes arise when employees feel
that the redundancy process was unfairly carried out or when the criteria for selection are unclear
or discriminatory. Employees may argue that the redundancy was not based on legitimate
reasons, or that they were selected for redundancy based on factors such as age, gender, or other
discriminatory grounds.

4. Discrimination and Harassment

Discrimination and harassment are frequent causes of disputes in the workplace. Under the
Security of Employment Act, employees are protected from discrimination based on race,
gender, religion, age, disability, or any other personal characteristic that is not relevant to their
performance. However, workplace discrimination still occurs in some organizations, leading to
disputes. Additionally, harassment, including sexual harassment and bullying, often leads to
disputes. Employees who experience discrimination or harassment may file complaints with the
employer or with external bodies like the CMA or the Labour Court, seeking remedies under the
Act. Disputes of this nature are typically resolved by addressing the conduct of the employer and
ensuring compliance with anti-discrimination laws.

5. Non-Payment of Benefits and Wages

Disputes also arise when an employer fails to pay statutory or contractual benefits, such as
severance pay, overtime, leave entitlements, and other employment benefits. Under the Security
of Employment Act, employers are required to pay employees for overtime work, provide
statutory leave (sick leave, annual leave), and ensure that workers are paid the correct amount
based on their employment contract. When employers fail to provide these benefits or wages,
disputes often follow, and employees may seek redress through the CMA or the Labour Court. A
lack of clear communication between the employer and the employee about benefits and
entitlements can further escalate these disputes.
 6. Unlawful Change of Terms and Conditions of Employment

Employers may sometimes change the terms and conditions of employment without consulting
employees or obtaining their consent. Section 7 of the Security of Employment Act requires that
any changes to the terms of an employee’s contract, such as changes in working hours, job
responsibilities, or salary structure, must be mutually agreed upon. Disputes arise when
employees believe that these changes are imposed without their consent or that the changes
adversely affect their employment status. For example, an employee may challenge a unilateral
decision by an employer to reduce their salary, alter their job description, or increase their
working hours without proper consultation or agreement. Employees may seek legal remedies if
they believe such changes constitute a breach of their employment rights.

7. Failure to Follow Due Process in Termination

The Security of Employment Act requires that employers follow specific procedures before
dismissing an employee. These procedures are meant to ensure fairness and transparency in the
termination process. Section 5 stipulates that before terminating an employee, the employer must
conduct a fair inquiry or investigation, provide the employee with the opportunity to respond to
the allegations, and ensure that the termination is justified.

Disputes occur when employees feel that the employer has not followed due process or has not
provided them with the opportunity to defend themselves against allegations. For example, an
employee may challenge a dismissal on the grounds that the employer failed to conduct a proper
investigation or did not provide sufficient notice before termination.

8. Workplace Health and Safety Issues

Disputes related to workplace health and safety can also arise under the Security of Employment
Act, particularly when employers fail to provide a safe working environment for their
employees. Under the Act, employers are required to ensure that employees work in conditions
that do not pose a risk to their health and safety. Failure to provide proper protective equipment,
adequate training, or a safe workplace can lead to disputes. For example, employees may raise
concerns if they are exposed to hazardous working conditions that could affect their health, such
as working with dangerous chemicals without proper protective gear. If the employer does not
address these issues, employees may seek legal recourse to ensure their rights are protected.

9. Trade Union Activities and Industrial Actions

Disputes may also arise as a result of trade union activities or industrial actions, such as strikes or
collective bargaining. Employees may dispute the terms of their employment through trade
unions or may engage in strikes to demand better working conditions, higher wages, or other
benefits. Employers, on the other hand, may see these activities as disruptive to the operations of
the business. In cases where industrial actions or trade union activities lead to disputes, the
Security of Employment Act provides guidelines for resolving conflicts related to collective
bargaining and strikes. Disputes in these areas are often resolved through the CMA or the Labour
Court.

MACHINERY FOR THE SETTLEMENT OF DISPUTES UNDER SECURITY OF

EMPLOYMENT ACT CAP

The Security of Employment Act (Cap 232) in Tanzania provides a robust framework for the
protection of employees' rights, with particular focus on job security, termination, redundancy,
and dispute resolution. The primary aim of this legislation is to prevent unfair dismissal, ensure
fair treatment of workers, and provide avenues for resolving conflicts that arise between
employers and employees.

One of the most crucial mechanisms established under the Security of Employment Act is the
Commission for Mediation and Arbitration (CMA). According to Section 4 of the Act, the
CMA plays a central role in resolving disputes between employers and employees, particularly
regarding issues such as unfair dismissal, breaches of employment contracts, and matters related
to redundancy or termination. The CMA is tasked with conducting both mediation and
arbitration, offering a platform for parties to resolve their issues amicably. In cases where
mediation fails, the CMA has the authority to arbitrate the dispute and issue binding decisions.
The CMA's function is essential for providing a quick and effective resolution to disputes,
ensuring that workers are not left in a prolonged state of uncertainty. For instance, in the case of
Mzee Shida v. Tanzania Printing Company, the CMA successfully mediated a dispute involving
wrongful termination, where the employer had failed to follow due process in the dismissal. The
ruling emphasized the importance of adherence to the procedures laid out in the Security of
Employment Act and underscored the CMA's role in ensuring fair treatment for employees.

The Employment Contract and Termination Procedures under the Security of Employment
Act are vital to maintaining fairness in employment relationships. Section 5 of the Act requires
that any termination of employment must be carried out for justifiable reasons and in accordance
with established procedures. This section outlines the steps employers must take, such as
providing proper notice, conducting investigations, and allowing employees the opportunity to
defend themselves if they face termination. If these procedures are not followed, employees are
entitled to seek redress. A significant case illustrating this principle is Lucia Mwakajuma v.
Tanzania Broadcasting Corporation, where the court ruled that the employer's failure to follow
due process led to an unfair dismissal. The case reinforced the importance of adhering to the
principles of fairness and transparency when terminating employees. In this case, the court
emphasized that employers must respect the legal rights of employees and cannot arbitrarily
dismiss them without following the required steps stipulated under the Security of Employment
Act.

Another significant aspect of the Security of Employment Act is its provisions regarding
redundancy and retrenchment, which are often causes of disputes in the workplace, especially
during economic downturns or organizational restructuring. Section 6 of the Act outlines the
procedures that must be followed when employers decide to make employees redundant. These
procedures include conducting consultations with the employees or their representatives,
selecting employees for redundancy fairly, and ensuring that affected employees receive the
appropriate severance pay and benefits. A notable case that dealt with redundancy procedures
was ABDUL SUDI V. NATIONAL BANK OF COMMERCE, where the employee challenged
his redundancy, arguing that the employer had failed to follow the statutory procedures. The
court found in favor of the employee, ruling that the redundancy was not conducted in
accordance with the requirements of the Security of Employment Act. The case highlighted the
critical importance of transparency and fairness in the redundancy process, ensuring that
employees are not unfairly dismissed during organizational restructuring.

Grievance handling and settlement is another key aspect of the Security of Employment Act
that plays a vital role in resolving workplace disputes. Section 7 of the Act mandates that
employers must establish grievance-handling mechanisms to address employees' complaints
before they escalate to external bodies such as the CMA or the Labor Court. These mechanisms
are designed to provide employees with a platform to air their grievances, whether they concern
unfair treatment, contractual disputes, or other workplace issues. In the case of Niafu Mwita v.
Tanzania Electric Supply Company, the court found that the employer had failed to adhere to
its own grievance-handling procedures, which led to the matter being referred to the CMA for
resolution. The case emphasized that internal grievance mechanisms must be respected to allow
for the fair and timely resolution of disputes within the organization, preventing unnecessary
legal proceedings and preserving industrial harmony.

In instances where disputes cannot be resolved through the CMA or grievance handling,
employees and employers can escalate the matter to the Labour Court, as outlined in Section 10
of the Security of Employment Act. The Labour Court has the authority to hear appeals or
disputes that are not satisfactorily resolved at the CMA level, making it a vital institution for
safeguarding workers' rights. The Labour Court’s rulings are binding and often provide clarity on
the application of the Act. In Mwakajuma Makwele v. Tanzania Railways Limited, the Labour
Court examined an appeal involving wrongful termination, where the CMA had made a decision
in favor of the employee. The Labour Court upheld the CMA’s decision, emphasizing that the
employee's rights under the Security of Employment Act had been violated, particularly in
relation to the fairness of the dismissal process. The case reinforced the court’s role in ensuring
that both employers and employees adhere to the principles of fairness outlined in the Act.

The compensation for unfair dismissal provisions under Section 9 of the Security of
Employment Act provide employees with the right to seek remedies if they are unlawfully
dismissed. Compensation may include reinstatement, re-engagement, or payment of severance
pay and other benefits as stipulated in the employment contract. In the case of Ally Mwita v.
National Social Security Fund, the employee was awarded compensation for an unfair
dismissal, as the employer had failed to adhere to the statutory requirements for termination. This
case underscored the importance of providing employees with appropriate compensation when
their employment rights are violated, ensuring that workers are not left without recourse when
dismissed unlawfully.

METHODS OF RESOLVING DISPUTES UNDER THE SECURITY OF EMPLOYMENT

ACT.

The Security of Employment Act (Cap 232) in Tanzania provides various methods for resolving
employment-related disputes, particularly those concerning unfair dismissal, termination,
redundancy, and breaches of employment contracts. The Act ensures that disputes are addressed
in a structured, fair, and efficient manner, offering protection to employees and promoting
industrial harmony. Below are the main methods for resolving disputes under the Security of
Employment Act:

1. Mediation by the Commission for Mediation and Arbitration (CMA)

One of the primary methods for resolving disputes under the Security of Employment Act is
mediation conducted by the Commission for Mediation and Arbitration (CMA). According to
Section 4 of the Act, the CMA is empowered to mediate disputes between employers and
employees. The mediation process allows both parties to discuss their issues in a neutral setting
with the help of an independent mediator. The aim of mediation is to reach a mutually acceptable
solution without the need for a formal legal proceeding. This method is cost-effective, less time-
consuming, and often results in a more amicable resolution, as both parties work together to find
common ground.

Mediation is particularly effective in resolving disputes related to unfair dismissal, wage issues,
working conditions, or breaches of contract. The CMA mediators use their expertise to help the
parties understand their rights and obligations under the law, facilitating communication and
negotiation between them. If an agreement is reached, the mediation process ends with a
settlement. However, if the parties cannot reach an agreement, the matter may be referred to
arbitration for further resolution.
 2. Arbitration by the Commission for Mediation and Arbitration (CMA)

When mediation fails or is not suitable, arbitration is the next step under the Security of
Employment Act. Section 4 also grants the CMA the authority to conduct arbitration in
employment disputes. Arbitration is a more formal process than mediation, where an arbitrator
listens to both parties’ arguments, evaluates the evidence, and makes a binding decision. The
decision made by the arbitrator is legally enforceable and can only be challenged on limited
grounds, such as procedural errors or bias.

Arbitration is often used for more complex disputes, such as those involving unfair dismissal,
redundancy, or breach of contract, where a resolution through mediation is not feasible. In the
case of Mzee Shida v. Tanzania Printing Company, the CMA conducted arbitration after
mediation failed to result in an agreement, ultimately issuing a binding decision on the matter.
The arbitral decision provides clarity and legal certainty, helping to resolve the dispute in a fair
manner according to the law.

3. Grievance Procedures within the Workplace

Under Section 7 of the Security of Employment Act, employers are required to establish internal
grievance-handling procedures. These procedures are designed to allow employees to address
issues and concerns directly with their employers before escalating the matter to external dispute
resolution bodies like the CMA or the Labour Court. The grievance procedures typically involve
a step-by-step process that includes informal resolution methods, followed by formal meetings
and discussions. If the dispute is unresolved, it can be referred to external authorities.

The grievance process often serves as the first line of defense against potential disputes. It allows
both the employer and the employee to communicate and resolve issues in a timely and cost-
effective manner, without the need for external intervention. For example, in the case of Niafu
Mwita v. Tanzania Electric Supply Company, the employee's grievance was initially addressed
through the company’s internal mechanisms, but the failure to resolve the issue led to the matter
being referred to the CMA. This highlights the importance of having clear and accessible
grievance procedures to handle disputes early on.

4. Labor Court

In situations where disputes cannot be resolved through mediation, arbitration, or internal

grievance mechanisms, employees and employers can escalate the matter to the Labour Court.
Section 10 of the Security of Employment Act gives the Labour Court the jurisdiction to handle
appeals and disputes that have been referred from the CMA. The Labour Court has the authority
to examine the legality of decisions made by the CMA and may issue a final ruling on the
dispute.

The Labour Court plays a crucial role in ensuring that the provisions of the Security of
Employment Act are properly applied. It provides a formal and authoritative platform for
resolving disputes that require a legal determination. For example, in Mwakajuma Makwele v.
Tanzania Railways Limited, the Labour Court heard an appeal related to wrongful termination,
confirming the CMA’s decision and reinforcing the legal protections afforded to employees
under the Act. The Labour Court’s rulings are binding and provide clarity on how employment
laws should be interpreted and applied.

5. Negotiation and Settlement

Negotiation is another method for resolving employment disputes under the Security of
Employment Act. This method involves direct discussions between the employer and the
employee (or their representative, such as a union) to reach a mutually acceptable solution to the
dispute. Negotiation may be initiated at any stage of the dispute resolution process, whether
before or after a formal grievance is raised or a dispute is referred to the CMA or the Labour
Court.

Negotiation is often used as a preventative measure, enabling both parties to resolve potential
conflicts before they escalate into more serious legal proceedings. It can also be used during the
mediation or arbitration process to help facilitate settlement. In many cases, negotiation leads to
a voluntary settlement that both parties are satisfied with, thereby avoiding prolonged litigation
or formal hearings.

6. Conciliation

Conciliation is a method used to bring the parties in a dispute together with the assistance of a
neutral third party to help them find a solution. While conciliation and mediation share similar
goals, conciliation often involves a more active role for the conciliator, who may offer
suggestions and recommendations to help the parties settle the dispute. Under the Security of
Employment Act, conciliation can be used in situations where mediation has failed or is not
appropriate.

CONCLUSION.

In conclusion, the Security of Employment Act is a crucial piece of legislation that serves to
protect both employers and employees in Tanzania’s labor market, ensuring fairness and
transparency in employment relationships. Disputes arising under the Act often stem from issues
such as unfair dismissal, breach of employment contracts, discrimination, redundancy, and non-
payment of benefits, all of which can lead to significant tensions between employers and
employees. These conflicts highlight the critical need for a deep understanding of labor laws, as
both parties are bound by rights and obligations that must be respected to avoid
misunderstandings and legal disputes. The Act provides a structured framework for dispute
resolution, offering mechanisms such as mediation, arbitration, and grievance procedures, all
designed to address conflicts in an efficient and fair manner. These methods not only help
resolve disputes but also maintain industrial harmony, fostering better labor relations across
sectors. By promoting clear communication between employers and employees, ensuring fair
treatment, and enforcing legal compliance, the Act contributes to creating a balanced and just
working environment. Furthermore, the Act plays a pivotal role in safeguarding workers’ rights,
which ultimately benefits employers by ensuring stable and productive workforces. The
successful resolution of disputes under this framework not only protects the interests of
individual employees but also contributes to the overall success and stability of businesses in
Tanzania, promoting long-term economic growth and development.
The implementation of the Security of Employment Act faced challenges, including resistance
from employers and inefficiencies in labor tribunals. By the late 20th century, economic changes,
including structural adjustment programs, necessitated a review of labor laws to align with a
market-oriented economy. This led to the replacement of the Act by the Employment and
Labour Relations Act of 2004, which modernized labor laws to incorporate international
standards while maintaining protections for workers.

Security of employment disputes often arise from various causes, including unfair dismissal,
contract breaches, and non-compliance with labor laws. Effective resolution mechanisms, such
as mediation and arbitration under the Commission for Mediation and Arbitration (CMA), play a
vital role in addressing these issues. Clear communication, adherence to legal frameworks, and
fostering mutual respect in the workplace are essential for minimizing disputes.