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How to hire remote employees in
Laws about hiring are complicated. If your company hasn’t already established a physical presence in Tanzania, you have two real options when it comes to hiring. We’ll detail both below—and tell you which one most companies prefer.
If you want to successfully hire in
Tanzania
, you have two options:
Laws about hiring contractors are significantly more simple in
Tanzania
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Tanzania
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Tanzania
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Tanzania
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Tanzania
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Tanzania than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Tanzania.
In Tanzania, the Employment and Labour Relations Act 2004 provides for annual leave on completion of a year of continuous service with an employer.
Employees who have been employed for at least 6 months are entitled to 28 days of consecutive leave per year inclusive of any public holidays that may fall during the period of leave.
The annual leave may be reduced by the number of days during a leave cycle, which are granted as paid occasional leave by the employer on worker's consent.
There are 15 paid public holidays in Tanzania.
In accordance with Employment and Labor Relation Act 2004, every worker certified by a medical practitioner is entitled to paid sick leave (sickness benefit) for a period of 126 days in a leave cycle of 36 months.
The first 63 days of sick leave are paid at 100% of the regular salary and thereafter, 50% of the regular salary.
In order to be entitled to sick leave and pay, the employee must provide a medical certificate.
Female workers are entitled to at least twelve weeks (84 days) of fully paid maternity leave or 100 consecutive days (in case of multiple births) within a leave cycle of 36 months
A worker is entitled to 84 days paid maternity leave within a leave cycle if the newborn dies within a year of birth.
Employment and Labor Relations Act 2004 provides for paid paternity leave of at least 3 days (in a leave cycle of 12 months) for a new father if this leave is taken within the 7 days of the birth of a child.
The employer may require reasonable proof of birth of child prior to paying for paternity leave.
There is no parental leave.
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The law does not have a specific provision for family/ social gatherings or activities of that type, but they can request some days off taken from their annual leave.
Employees can request some days off taken from their annual leave.
Termination of employment can be initiated by any of the parties to a contract of employment. Lawful termination of employment under common law includes:
Termination of employment by agreement:
Automatic Termination:
Termination of employment by the employee/Resignation:
Termination of employment by an employer:
Notice period lasts one week if it is served in one month of employment.
After first month an employee working on daily basis should be served notice four days before termination and if an employee works on monthly basis, the notice period should be 28 days.
Worker is entitled to the severance pay if he/she has completed at least a year of a service with the employer.
Severance pay in Tanzania is equal to at least 7 days’ basic wage for each completed year of employment up to a maximum of ten years.
The notice period in Tanzania is:
Worker is entitled to the severance pay if he/she has completed at least a year of a service with the employer.
Severance pay in Tanzania is equal to at least 7 days’ basic wage for each completed year of employment up to a maximum of ten years.
There is no explicit provision in the Employment and Labor Relations Act 2004 about probation period.
However, this act implicitly requires a probationary period of 6 months by saying that a worker with less than 6 months of employment may not bring an unfair termination claim against the employer.
According to the law, your normal working hours per day are 8 hours and these should not be more than 48 hours per week.
By including the lunch and prayer time in hours of work, working hours should not be greater than 9 hours a day.
Lunch break is applicable only if the employee works continuously for five hours.
Overtime is compensated at 150% of the salary for anything over 48 hours or 200% for working on a designated holiday or rest day.
In Tanzania, an employee can continuously work for 6 days but the 7th day must be a rest day.
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