Q&A – 27 May 2019
Presidential benefits spoiling me
I was a President of a company, and was well taken care of until when I had to retire. I was used to having my car door opened, my shopping done, a personal assistant, full furnished home with everything covered. After retirement I am getting the shock of my life. I have even started doing my laundry. Isn’t there an automatic law that former President’s like myself should be taken care of for life? Please guide me as I am feeling very depressed and my former employer is least bothered.
FG, Dar
We are not sure if this is a dream or a real question. We say so because you were a President of a company and not President of a country. Your retirement benefits, especially the luxuries you mentioned, are decided by the company post retirement not the statutes. Unless the company had promised you these luxuries, you will have to live like a normal man again or spend your savings to buy such luxuries.
We hear it is hard to adjust when you have been pampered so much, but if you have the will, there will be a way.
Strong perfume at workplace
I understand that it is now unlawful to smoke in public but there is another forgotten ill behavior of people using strong scent perfumes in public places. For instance in our work place some of my colleagues apply strong perfumes with a choking smell. As an administrator I have been sending these employees home. This is because the perfumes are causing nausea and make other employees sneeze. Some of these employees are saying my actions contravene labour laws and discriminatory. Is this correct? Is there a law to prevent such scents at the work place? If not, can this law be enacted? Please guide.
TR, Arusha
Provisions of the Tanzania labour laws mandates the employer to control work relations for the purpose of harmonizing the workplace relations. The labour laws do not allow employers to discriminate employees instead to require employers to promote equality of opportunity and treatment in employment. Taking affirmative action measures to ensure interest of employees are harmonized is not discrimination. Imagine how chaotic and unfriendly the workplace would be if every employee starts to suffer headache, nausea only because of co-worker’s perfume. We think the problem like this can be well managed by the employer through counseling the employees on the problems caused to fellow employees.
We are unaware of any further specific law which prohibits use of perfumes in Tanzania. As for enactment of the law, we think you can take this up with the responsible minister and/or your member of parliament and if at all viable, legislative process may be initiated. However, the government has other priorities and enacting a law on how to use perfumes is surely not one of them.
75% rule for bankers
We are in the banking industry and have been auctioning mortgaged houses that have been secured by us for loans. We are made to believe that the Land Act requires that a mortgaged property be sold at not below 75% of its market value. Is this applicable in practice and how do we go about this? With Court injunctions being issued all the time, it is very difficult for a prospective buyer of an auctioned property to buy the property at very high prices as there always are issues with getting the title transferred in addition to getting vacant possession. In short, the market reality will never meet the 75% rule because of the way Courts are treating defaulters. We are really confused. What should we do?
TY, Dar
To begin with the law is clear in that the sale of any property below 75% of its market price can be void. This will affect both you and the purchaser. Infact you may end up being sued by the bona fide purchaser, mortgagor and borrower if different from the mortgagor. Whether this is applicable in practice or not is irrelevant as the law makes it mandatory for you to comply with the 75% rule.
We understand your concerns about Court orders and the like. What we recommend to ascertain the market value at the time is for a valuer to prepare a report and factor in all market conditions in the report prior to auction so that you can set the property price with a 75% reserved price. That will minimize the market value arguments that may be raised in the future by the mortgagor.
The law has not addressed what the banker can do if the closest offer is below the 75%. That would likely entail you to commission another valuation to match current market realities before any auctions. What we have noticed at the moment is a number of bankers are not engaging valuers to prepare fresh valuation reports prior to auctions nor setting reserve prices. Remember that the borrower and/or mortgagor has statutory rights that you must always comply with.
Legality of hell or high water clause
Is this clause legal in Tanzania? Can I get out of a contract with a clause that is affecting my rights?
IP, Dar
A hell or high water clause is a clause in a contract which provides that the payments must continue irrespective of any difficulties which the paying party may encounter. It is intended to limit applicability of the doctrines of frustration in contracts.
The term comes from a colloquial expression that a task must be accomplished “come Hell or high water” that is, regardless of any difficulty.
Whether or not such a clause is applicable in Tanzania, one needs to understand in what type of contract it is used, and whether it is trying to sideline any statutory provisions of the law. If it is, then it will not apply to that extent otherwise using it should be fine.