The labour law regime in Tanzania provides a level ground for both employers and employees. 

However, this opportunity has been mostly used by employees and hardly any employers due to various reasons. It is important to note that Sections 4 and 88 of the Employment and Labour Relation Act [CAP 366 R.E 2019] define a dispute to mean:

1. Any dispute concerning a labour matter between any employer or registered employers association on the one hand and any employee or registered
   trade union, on the other hand, and 
2. Includes an alleged dispute or fairness or unfairness of termination of an employee
3. Any other contravention of the Act or any other labour law or breach of contract. From the above definitions, it is quite clear that the legal regime is
   available to serve the interest of employers/employers’ organizations and employees/trade unions

The right to seek legal redress in labour disputes

The above position has been amplified by the High Court (Labour Division) in the case of Mussa Hussein Shabani vs Times Radio FM Limited (Revision Application No. 24709 of 2024) [2024] TZHCLD 81 (24 May 2024)

In this particular case, the Employer filed a claim at the CMA alleging that the Employee had breached the terms of a fixed-term employment contract. The employment agreement was set to last for a duration of two (2) years and was unilaterally terminated by the Employee without prior notice. Feeling aggrieved, the Employer pursued the matter at the CMA, resulting in a ruling in their favour. Unhappy with this outcome, the Employee sought to challenge the decision in the High Court Labour Division court on several grounds, including contesting the existence of a valid employment contract and disputing the award of general damages.

The Court dismissed the Employee’s application, finding that the CMA’s decision was sound and justified. The Court upheld the award of general damages to the Respondent, confirming the principle that both Employers and Employees have the right to seek legal remedies for breaches of contract.
The case serves as a rare example of an Employer successfully pursuing a labour dispute in Tanzania. The Court's decision is a reminder that the principles of contract law apply to employment contracts, and both parties must adhere to the agreed terms to avoid legal repercussions. Also, this case serves as a reminder to both Employers and Employees of the mutual responsibilities in contractual relationships and the legal avenues available when
those responsibilities are not met. The Court's decision confirms the equal rights of Employers to protect their interests in the event of a breach, contributing to the growing body of labour law jurisprudence in Tanzania.

The Court's decision is a reminder that the principles of contract law apply to employment contracts, and both parties must adhere to the agreed terms to avoid legal repercussions. Also, this case serves as a reminder to both Employers and Employees of the mutual responsibilities in contractual relationships and the legal avenues available when those responsibilities are not met. The Court's decision confirms the equal rights of Employers to protect their interests in the event of a breach, contributing to the growing body of labor law jurisprudence in Tanzania.

Legal Implications

• This case reinforces that Employers in Tanzania have the right to refer disputes to the CMA and the courts when an employment contract is
  breached.
• An Employer has the right to sue for breach of contract where an Employee resigns from his/her employment without any notice or following
  contractual terms, and the Employer may also receive an Award to be paid general damages by the Employee.
• Both Employers and Employees are bound by the terms of the employment contract, and any breach can attract legal consequences.

This case underscores the fact that the right to seek legal redress in labour disputes is equally available to both Employers and Employees. It also highlights the importance of honouring employment contracts and the legal consequences of breaching such agreements. In dismissing the Employee’s Revision, the Court reinforced the principle that parties must abide by the terms of the contracts they freely enter into, further establishing that Employers, like Employees, are entitled to seek compensation when those terms are violated.