A recent amendment to section 37(6) of the Employment and Labour Relations Act, Cap. 366 R.E. 2023 (ELRA) has generated significant discussion among employers and labour law practitioners, particularly regarding its potential implications for employers' ability to exercise workplace discipline effectively.
The amendment is to the effect that an employer may not allow, commence or continue disciplinary proceedings against an employee where the matter in dispute has been referred to the Commission for Mediation and Arbitration (CMA). On its face, the provision can be interpreted to mean that an employee facing disciplinary action could simply file a dispute before the CMA and, by so doing, halt the disciplinary process at least up until the dispute is finally determined by the CMA. Such an interpretation would mean that employers must retain employees accused of serious misconduct on their payroll, pending determination of disputes referred to the CMA, which could take a considerable period of time and likely expose the business to incurring significant costs.
Fortunately, the High Court of Tanzania, Labour Division (Labour Court) has recently provided much-needed guidance on the proper interpretation of section 37(6). In Revision Application No. 16442 of 2026 between Erick Ongara v Agro Team Pro Tanzania Ltd, the court delivered a well-reasoned decision that strikes an appropriate balance between protecting employees' rights...
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