Annual Leave

Annual Leave in Tanzania, Employers and Annual leave in Tanzania, What you need to know about Annual Leave and Employers and Employees in Tanzania and more on AfricaPay Tanzania.

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What is annual leave? How does an employee become eligible for it?

Annual leave is a period of time off work granted to an employee, during which time he/she will receive full pay. An employee becomes legible for annual leave if he/she has completed a period of 12 months service to the employer. Annual leave matures six months from commencement of employment and it can be taken on pro rata basis. Annual leave is 28 days and it is inclusive of the weekly rest period and all public holidays falling therein. 

Annual leave is covered under Sub Part D of Part III of the Employment and Labour Relations Act, No. 6 of 2004.

Is a temporary worker also entitled to annual leave?

For an employee to be entitled to annual leave, he/she must have worked with the same employer for 12 months. So even if an employee has worked on a temporary basis, if the number of their work days adds up to 12 months they will be entitled to annual leave.

The law also allows payment of leave on a pro rata basis. For example, if an employee works for a duration of nine months he/she would still be entitled to annual leave but on pro rata basis. The pro rata amount of annual leave is usually calculated at the rate of one day’s basic wage for every 13 days the employee has worked or was entitled to work. 

Does the law permit me, as an employer, to accumulate/carry forward the annual leave of an employee?

Generally, it is in the spirit of the law that annual leave should be taken during the same leave cycle. Under the law, after an employee has submitted their application for leave it is your duty as an employer to determine when the leave is to be taken. The law allows an employer to carry it forward but the carry forward should not be later than six months after the end of the leave cycle or twelve months after the end of the leave cycle if the employee has consented and the extension is justified by operational requirements.

In event of termination or resignation, when an employee has some outstanding/accrued leave the employer is liable to pay the employee an amount that is equivalent to that leave. 

At what rate is annual leave paid? Does an employee get full pay?

Yes, an employee is entitled to his/her full salary during annual leave. In fact the law requires the employer to pay remuneration to an employee before the commencement of their leave. On top of ordinary remuneration, the Regulation of Wages and Terms of Employment, Order, 2010 requires an employer to pay an employee Leave Travel Assistance, and the same is payable once in two years. The function of Leave Travel Assistance is mainly to assist an employee to cater for transport costs when taking leave. The law does not stipulate the amount which should be paid. The employer and employee must negotiate this amount and either put it in a Collective Bargaining Agreement, a Human Resource Manual or employment contract. 

Can an employer pay an employee an amount of money in substitution for their annual leave?

The law prohibits payment in substitution of leave whether an employee consents or not. The leave period is meant to provide an employee a period to relax so that he/she comes back to work feeling fresh and energised.

Annual leave becomes payable only upon termination/resignation or expiration of a contract and if the employee has accrued number of leave days.

An employer is not allowed to call an employee to work during their period of annual leave. 

If an employee takes maternity leave would she still be entitled to annual leave in the same year?

Yes! She would still be entitled to annual leave. Both can be taken in the same year. This is because annual leave and maternity leave serve a different purpose. Section 31 (5) of the Employment and Labour Relations Act, 2004  provides that an employer shall not require or permit an employee to take annual leave in place of any leave to which the employee is entitled. 

Can an employer deduct the paid time off that an employee requested and was granted from their leave days?  

Yes. If an employee has taken some paid days off during the leave cycle he/she would still be entitled to annual leave but minus the number of days during the leave cycle which were granted to him/her.