Agency shuts operations

I have worked for a foreign aid agency based in Tanzania for over ten years, but now they are closing operations in the country. They have given us termination letters, yet I am unsure about my rights. Will I receive any form of compensation for loss of employment? I did not wish to leave my job; the termination was the employer’s decision. What does the law stipulate? Please clarify this for me.
LA, Dar es Salaam

You are right to question your rights. Employment matters are governed by the Employment and Labour Relations Act, 366 (R.E 2019) (ELRA). When termination occurs due to a company closure, section 42 of the ELRA mandates that affected employees receive severance pay. The law stipulates that severance pay should amount to at least 7 days’ basic wage for each completed year of continuous service for that employer up to a maximum of 10 years. Employees who will be entitled to severance pay are those who have completed 12 months of continuous service and the employer terminates their employment. However, severance pay is not required if the termination is due to misconduct, capacity, compatibility, or operational requirements, and the employee unreasonably refuses alternative employment.

Additionally, according to section 44, the employee is also entitled to terminal benefits such as remuneration for work done before the termination; transport allowance, leave payments for leave that was not taken, and a certificate of service. Make sure to review your employment contract, as it might include additional benefits beyond what the law guarantees.

If you suspect your rights are not being upheld, consult your human resource officer or lawyer for further guidance.