New law requires succession plans for transitioning foreign employee jobs to local workers

IMPACT – MEDIUM

What is the change? Tanzania has introduced legislation that would significantly change the work permit process.

What does the change mean? Under the amendments, companies seeking to hire foreign employees would first have to lay out a succession plan and training program to transition the job to a Tanzanian worker. Before issuing a work permit, the Labour Commission must approve the company’s plan and be satisfied that the company has made all possible efforts to fill the position with a Tanzanian citizen.

• Implementation time frame: The law must be published and regulations issued before any changes come into force.
• Visas/permits affected: Work permits.
• Who is affected: Companies seeking to hire non-Tanzanian citizens.
• Impact on processing times: The added procedures may lengthen the work permit application process.
• Business impact: The requirement that companies produce succession plans and training programs will add to the time and cost of sponsoring foreign workers and may make it more difficult to obtain work permit approvals.

Background: The legislation will amend the Non-Citizens (Employment Regulation) Act, 2014 by requiring companies to prepare succession plans that must be approved by the labor commissioner.

The succession plan must lay out a “well-articulated” program to transfer the foreign worker’s knowledge or expertise to a Tanzanian citizen during the period of employment and provide any other information requested by the labour commissioner. The employer must also establish an effective program to train local employees to undertake the foreign expert’s duties.

The labour commissioner must review the succession plan and also be satisfied that “all possible efforts have been explored to obtain a local expert” before approving a work permit.

BAL Analysis: The changes indicate Tanzania is moving toward stricter requirements for work permits to strengthen the local workforce.

This alert has been provided by the BAL Global Practice group and our network provider located in Tanzania. For additional information, please contact your BAL attorney.

Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.