I am an expatriate working for the past 5 years in a manufacturing company in Tanzania. My contract expired a few months ago and I did not want to renew it. I then approached the head of HR for my severance pay and was shocked to be told that I am not entitled to severance allowance. What is the legal position?
The Head of HR is correct. In terms of section 42(3)(c) of the Employment and Labour Relations Act, an employee who is leaving his job because his fixed term contract has expired or because he/she has attained the retirement age is not entitled to a severance pay. Severance pay is given to an employee whose contract has been terminated by the employer and not to an employee whose contract has terminated automatically or an employee who has resigned.