Introduction
On 11th October, 2021, The Written Laws (Miscellaneous Amendments) (No.4) Act, 2021 (“the Amending Act”) became operational, amending several laws. Among other law, the Non- Citizens (Employment Regulation) Act, Act No 1 of 2015 (“the Act”) has been amended to affect the non-citizens’ employment regime in Tanzania. Apart from the Amending Act, the Act has also been amended by the Finance Act of 2021. The following below are the key amendments that have affected directly, non-citizens’ employment in Tanzania.
1. Electronic Application System
Section 42 (b) of the Amending Act has introduced Section 10(4) to the Act that empowers the Labour Commissioner to establish an electronic system for application and issuance of work permits to non-citizens. The rationale being, to improve efficiency in the whole application process, as the applicant will no longer need to physically visit the Labour office when lodging application and following up physically the status of the application lodged. Through an electronic system, non-citizens will be able to make application even when they are not present in Tanzania.
2. Extension of Validity of Work Permit
Section 43(b) of the Amending Act has amended Section 12(4) of the Act to affect the number of years that a non-citizen can be issued with a work permit in Tanzania. Initially, Section 12(4) of the Act granted a validity of 24 Months for the first issuance of work permit to the applicant, with a possible extension of up to five years, calculated from the first date of issuance. The amending Act has extended this time from five years to eight years. With this Amendment, non-citizens will have more time to take up their employment opportunities in Tanzania. The Amending Act has not affected the exception provided under section 12 (5) of the Act for investors whose contribution to the economy or the wellbeing of Tanzanians through their investment is of great value. Investors falling under this exception, their work permits can still be extended beyond ten years.
3. Labour Commissioner to Attach any Condition on the finality of the Permit.
Section 43 (c) of the Amending Act has introduced Section 12 (7) to the Act. This Section gives powers to the Labour Commissioner to attach more conditions when issuing work permits regarding the finality of the permit. Powers to insert these conditions, in addition to general powers provided for under Section 12(1), apply in the following circumstance;
- Where the employer has requested the work permit for a limited duration.
- Where the non-citizen is about to complete his time of working in the country pursuant to section 12(4); or
- Where the Commissioner considers it necessary for proper implementation of the provisions of the Act.
4. Incentives for Investors
The amending Act has extended work-permit related incentives for investors. Section 19 of the Act has been amended to give investors registered with the Tanzania Investment Centre or Export Processing Zone to employ up to ten non-citizens without being bound by restrictions of the Act. This amendment does not exempt investors from employing other non-citizens if they maintain a ratio of one non-citizen to ten local employees. These changes seek to provide investors with more flexibility in employing suitable non-citizens personnel while also protecting employments for locals.
5. Fines for Non-Filing of Return of Non-Citizens Employment
Section 16 (1) of the Act imposes an obligation to employers of non-citizens to file returns of non-citizen employees twice in a year. The law states particularly that such returns should be filed on the 30th of June and the 31st of December. However, Section 35 of the Finance Act of 2021 has introduced a fine of Tanzanian shillings five hundred thousand (500,000/=), about 220 USD (as of August 2021), for every month or part of a month in delay. This means employers must be more cautious of the filling obligations; otherwise, they will be liable to pay fines for such delays.
Conclusion
Amendments brought by the Amending Act to the Act are significant as they affect employment of non-citizens in the country positively. Through these Amendments more investors shall be attracted to do business in Tanzania as the number of non-citizen employees has been increased to 10. As for Tanzanians this change can be used a tool for skills and knowledge transfer from foreigners.
Important Notice:
This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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