IN THE HIGH COURT OF TANZANIA
LABOUR DIVISION
AT DAR ES SALAAM
REVISION APPLICATION NO. 378 OF 2020
(Originating from Labour Dispute No. CMA/DSM/ILA/406/900/266)
BETWEEN
TUSIIME HOLDINGS (T) LTD.................................................... APPLICANT
VERSUS
MARIA CHOROBI............................................................ 1st RESPONDENT
ALLEN ISA YA................................................................... 2ND RESPONDENT
JUDGMENT
Date of Last Order: 15/15/2021
Date of Judgment: 25/01/2022
I. ARUFANI, J.
The respondents herein were employed by the applicant on
different dates as teachers on fixed term contracts. The first
Respondent started her contract of employment with the applicant on
January, 2008 and the last contract was for two (2) years
commencing from 10th May, 2018 and intended to end on 10th May,
2020. The second respondent was employed under a fixed contract of
one (1) year from 2016 and his last contract was ending on August,
2019.
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On 22nd March, 2019 the second respondent wrote to the
applicant a letter of resigning from his employment on ground that
the working condition was intolerable and the first respondent wrote
to the applicant a letter of resignation from her employment on 1st
April, 2019 basing on the same ground. On 20th May, 2019 the
respondents filed a labour dispute before the Commission for
Mediation and Arbitration at Dar es Salaam Zone (hereinafter referred
as the CMA) which was registered as CMA/DSM/ILALA/406/900/266
claiming for various reliefs basing on constructive termination of their
employment by the applicant.
The CMA determined the matter in favour of the respondents
and while the first respondent was awarded the sum of TZS
21,240,000/= being compensation for remaining salaries of twelve
(12) months, one month salary in lieu of notice and general damages,
the second respondent was awarded the sum of TZS 14,800,000/=
being compensation for remaining salaries of four months, one month
salary in lieu of notice and general damages. The applicant was
dissatisfied by the award and filed the present application in this
court seeking for the CMA award to be revised and set aside.
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The award was challenged by the applicant basing on eight
grounds listed under paragraph 4 of the supplementary affidavit
deposed by Albert Eustadi Katagira filed in the court to support the
application. In challenging the application, the respondent's filed in
the court their supplementary counter affidavits. Hearing of the
application was conducted by way of written submission. While the
applicant was under service of Advocate Stella Modest Rweikiza, the
respondents were served by Advocate Edward Kikuli.
The counsel for the applicant argued in relation to the 1st
ground of revision that, the CMA erred in law to entertain a dispute
which was time barred. She argued that the first respondent resigned
from her employment on 1st April, 2019 and the second Respondent
resigned from his employment on 22nd March, 2019 and the dispute
was filed before the CMA on 20th May, 2019. She stated that was 50
days from the date the first respondent wrote to the applicant her
letter of resigning from her employment and 59 days from the date
the second respondent wrote to the applicant his letter of resigning
from his employment.
The counsel for the applicant submitted that, the dispute was
filed in the court out of thirty (30) days provided under Rule 10 (1) of
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the Labour Institution (Mediation and Arbitration) GN. No. 64 of 2007
and without condonation of time. To strengthen her argument, the
counsel for the applicant cited in her submission the cases of
Tanzania One Mining Ltd. v. Andre Venter, Revision No. 276 of
2009 and Shaban Abilah Okala V. Mohamed Idd Mkuro
Transport, Labour Revision No. 10 of 2019 where it was stated that,
limitation is not a procedural issue but a statutory requirement.
She argued in relation to the 2nd ground that the arbitrator
erred in law by causing the applicant to be the first person to testify,
while due to the nature of the termination being constructive, the
respondents were the one who were supposed to prove the alleged
intolerable working condition that resulted into termination of their
employment. She supported her argument with Rule 7 (3) of the
Employment and Labour Relations (Code of Good Practice) GN. No.
42 of 2007.
She argued that, it is a cardinal principle of the law as provided
under section 110 (1) and (2) read together with section 111 of the
Evidence Act, Cap 6 R.E 2019 that, he who alleges must prove. She
referred the court to the case of Kobil Tanzania Ltd. V. Fabrice
Ezaovi, Civil Appeal No. 134 of 2017 where when citing with
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approval the case of HC Heat Exchanges (Pty) Limited v. Victor
J.L. De Araujo & 2 others, Case No. JR155/16 it was stated that,
the onus to prove the existence of intolerability rests squarely upon
the shoulder of the employee. It was further submitted by the
counsel for the applicant that the arbitrator erred in law by shifting a
burden to the applicant to start giving evidence while the applicant
was to rebut the respondents evidence on the intolerable
environment of their working condition.
The counsel for the applicant jointly submitted on the 3rd, 4th,
5th, 7th, 12th and 13th to the effect that, the law under Rule 7 (1) of
GN. No. 42 of 2007 defines constructive termination to be where the
employer made an employment intolerable which may result to
resignation of the employee. She stated that, the circumstances
which may justify constructive termination are provided under Rule 7
(2) of the GN. No. 42 of 2007 to include sexual harassment and if the
employee has been unfairly dealt with, provided the employee has
utilized available mechanisms to deal with the grievances unless there
are good reason for not doing so.
She referred the court to the case of Kobil Tanzania Ltd. v.
Fabrice Ezaovi (supra) which provides for the question to be asked
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in order to prove constructive termination. She submitted that, in his
evaluation the arbitrator failed to weigh, consider and evaluate
properly the evidence as adduced by the parties. She further
submitted that, under that circumstance the arbitrator erred to award
the respondents compensation of salaries of the remaining period of
a contract.
Regarding the 6th ground it was submitted by the counsel for
the applicant that, the arbitrator erred in law and fact by finding that,
the applicant breached the employment contract while there was no
such claim from the applicant and the same was not proved by the
respondents. As for the 8th, 9th and 10th grounds of revision the
counsel for the applicant argued that, it is a trite law that for general
damages to be awarded it must be pleaded and proved. She
submitted that, in the present application the general damages were
neither pleaded by the respondent nor proved by them, hence the
award of general damages of Tshs. 10,000,000/= to each respondent
were improperly procured.
She argued in relation to the 11th ground of revision that, the
award of salaries for the remaining period of contract and general
damages was excessive. She submitted the same is not justified
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compensation as it enriches the respondent contrary to the general
rules of awarding compensation. At the end she prayed the court to
grant the application.
In response to the submission by the counsel for the applicant,
the counsel for the respondents stated in relation to the first ground
of revision that, the dispute was timely filed before the CMA, hence
the ground is misconceived. He argued that, as reflected at page 2 of
the award, on 22nd March, 2019 and 1st April, 2021 the respondents
respectively wrote their letters of intention to resign due to the
intolerable working conditions. He stated that, on 6th April, 2019 the
applicant replied the said letters by denying the allegation. He further
submitted that, the letters written to the respondents by the applicant
shows until 25th April, 2019 the respondents were still working for the
applicant and the respondents filed their dispute before the CMA on
20th May, 2019 which was within the time prescribed by the law.
The counsel for the respondents submitted further that, even if
it will be taken the dispute was time barred, but by invoking Rule 4
(1) and (2) of the Labour Institution (Meditation and Arbitration)
Rules GN. No. 67 of 2007 which provides for exclusion of the first
date and the last date, then the dispute was filed in the CMA within
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the time as required by the law. To strengthen his submission, he
referred the court to the case of Barclays Bank (T) Ltd. v. Jacob
Muro, Civil Appeal No. 357/2019.
As regard to the 2nd ground, it was submitted for the
respondents that, the law under Section 39 of Employment and
Labour Relations Act, Cap 300 RE 2019 rest the burden to prove
fairness of termination to the employer. He further submitted that the
employee who has been constructively terminated can claim for
unfair termination, except those on probation as stated in the case of
David Nzaligo v. National Microfinance Bank, Civil Appeal No.
61/2016. Since the respondent referred the dispute of constructive
termination to the CMA claiming to have been unfairly terminated
then, the CMA was correct to allow the applicant to start giving his
testimony as required by the law.
He argued in relation to the 3rd and 4th grounds that, the
respondent's termination was a last resort basing on the
circumstances that, the first respondent wrote a letter to the
applicant on 16th May, 2018 complaining about deduction of his salary
and mode of payment of his salary which resulted into loss of his
social security benefits but that letter was never replied by the
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applicant. The same applied to the second respondent who wrote his
letter to the applicant but it was never responded.
He submitted that, it is because of the above stated reason the
respondents on 1st April, 2019 and 22nd March, 2019 wrote their
letters to inform the applicant about their intention to resign from
their employment because of the intolerable working condition. He
stated that, there was also discrimination of the respondents as other
employees were prohibited by the applicant not to talk and corporate
with them, as testified by the 1st respondent that she was informed
by Jackline and James. He submitted that, basing on the stated
intolerable working conditions the respondents were constructively
terminated.
It was submitted for the respondents in relation to the 5th
ground that, there was no any proof tendered by the applicant to
substantiate that the deductions were for PAYE and NSSF. It is a
principle of law that unjustifiable reduction of salaries is one of the
intolerable working conditions and it amounts to constructive
termination. To bolster his argument the counsel for the respondents
cited the case of Vietel Tanzania Ltd. V. Edmund Kabonge,
Revision No. 816 of 2018. He added that, even if the deductions were
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in accordance with clause 4 of their employment contract, the same
could have started from the beginning of the contract and not after
the lapse of many years.
As regards to the 7th, 8th, 9th, 10th and 11th grounds of revision it
was submitted for the respondents that, since constructive
termination was proved by the respondents then the arbitrator was
correct to award them the salaries of the remaining period as
provided in the case of Good Samaritan V. Joseph Robert Savari
Munthu, Revision No. 165 of 2011. He argued that, the arbitrator
was right to award the respondents compensation for the general
damages of Tshs. 10,000,000/=. He stated that, the Arbitrator has
discretion to award more compensation after taking into
consideration all factors and circumstances of the case and supported
his point by citing the case of Pangea Minerals Ltd V. Gwandu
Majali, Civil Appeal No. 504 of 2020.
To conclude his submission the Counsel for the respondents
submitted that, it is a principle of law in civil cases that, one with
heavy evidence must win the case. This principle was established in
the case of Hemed Said v. Mohamed Mbilu, [1984] TLR, 113
where it was held that, under the law both parties cannot tie as the
io
person with heavier evidence than the other, is the one who must
win the case. He submitted that, in this case the arbitrator considered
the evidence tendered by the parties, and decided in favour of the
respondents as the evidence was heavier than the applicant's
evidence. Basing on the above stated reasons the counsel for the
respondents prayed the application be dismissed. In rejoinder the
counsel for the applicant reiterated what she argued in her
submission in chief.
Having carefully considered the submissions from both sides
and after going through the record of the matter as well as the laws
governing the matter the court has found it is proper to determine
this application by dealing with the grounds of revision seriatim as
argued by the counsel for the parties. Starting with the first ground
which states the matter referred to the CMA was time barred the
court has found that, the said ground was vehemently disputed by
the counsel for the respondents who argued the dispute was timely
filed in the CMA. The court has found the law governing limitation of
time for referring dispute to the CMA is GN. No. 64 of 2007 which its
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Rule 10 (1) and (2) provides as fol lows:-
"Rule 10. - (1) Disputes about the fairness of an employee's
termination of employment must be referred to the
Commission within thirty days from the date of termination
or the date that the employer made a final decision to
terminate or uphold the decision to terminate.
(2) All other disputes must be referred to the Commission
within sixty days from the date when the dispute arose".
The court has found the respondents alleged their employment
was constructively terminated by the applicant. That means they
were challenging fairness of the reason caused them to terminate
their employment which is an intolerable working condition. Under
that circumstances the provision of the law which was supposed to
govern limitation of time for filing the respondents' dispute before the
CMA is Rule 10 (1) of the GN. No. 64 of 2007 quoted hereinabove
which states the dispute of that nature was supposed to be filed at
the CMA within thirty days from the date of termination of their
employment.
The court has found the CMA Fl which is in the record of the
matter shows the respondents stated thereon that, their dispute
arose on 1st May, 2019 and the dispute was filed in the CMA on 20th
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May, 2019. On the other hand, the applicant's counsel maintained
that, the dispute arose on 22nd March, 2019 and 1st April, 2019 when
the respondents wrote their respective letters of resigning from their
employment. That means the issues to determine in this ground is
when exactly the dispute arose and whether the dispute was filed in
the CMA within or out of the time prescribed by the law.
After going through the evidence adduced before the CMA the
court has found it is not disputed that, the first respondent wrote a
letter to the applicant on 1st April, 2019 requesting to resign from her
employment and prayed her request to be answered within seven
days from the date of that letter. The second respondent wrote his
letter to the applicant on 22nd March, 2019 request for the same
prayer of resigning from his employment.
The court has found it is also not disputed that the applicant
replied the said letters, on 6th April, 2019 and apart from denying the
allegation of intolerable working condition of work raised by the
respondents, he also advised the respondents that, if they wanted to
resign from their employment, they should abide to clause 8.1 of
their contract of employment. The mentioned clause of the contract
of employment of the parties provides that, if a party to the contract
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want to terminate the contract, he should give the other side one
month notice or made one month payment in lieu of notice.
The record of the matter reveals that, no notice of terminating
the contract was given by the respondents as advised by the
applicant. To the contract on 23rd April, 2019 the respondents
through A & D Law Attorneys wrote a demand note to the applicant,
demanding to be paid compensation by the applicant for being forced
by the applicant to terminate their employment.
On 29th April, 2019 the applicant replied the respondents'
counsel's demand letter and apart from denying the claims of the
respondents in toto but the applicant stated they were not against
the respondents' intention of taking legal action against them. The
record of the matter shows further that, on 10th May, 2019 the
applicant wrote another letter to the respondents demanding them to
give explanation as to why they had not attended the work from 25th
April, 2019 to the date of the letter.
That being undisputed facts of the matter the court has found it
is proper to have a look on what is provided under Rule 6 (1) of the
GN. No. 42 of 2007 which governs resignation of employees working
14
under fixed term contract like the respondents. The cited provision of
the law states as follows:-
"Ruie 6-(l) Where an employee has agreed to a fixed term
contract, that employee may only resign if the employer
materially breaches the contract. If there is no breach by the
employer the employee may lawfully terminate the contract
before the expiry of the fixed term by getting the employer
to agree to an early termination."
The court has found the wording of the above quoted provision
of the law is very plain that, an employee who is working under a
fixed term contract he may resign if the employer breaches the
contract. If the employer has not breached the contract the employee
may also lawfully terminate his employment by agreeing with his
employer for early termination of his employment. As the respondents
alleged the applicant breached their fixed term contract through
deduction of their salary and failure to pay them their full salaries
through their bank accounts which affected their social security
benefits the court has found the respondents had a right under the
above quoted rule to resign from their employment without being
required to agree with the applicant for early termination of their
contract.
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The above finding caused the court to come to the view that, the
cause of action of the claims of the respondents is supposed to be
counted it arose on 1st April, 2019 for the first respondent and on 22nd
March, 2019 for the second respondent when they wrote their letters
of resigning from their employment as argued by the counsel for the
applicant. If it will be taken the cause of action was required to arise
from when the respondent's letters of resignation were replied by the
applicant the court has found that, limitation of time for their claims
was required to start counting from 6th April, 2019 when the applicant
replied their letters of resignation.
The court has tried to consider the argument by the counsel for
the respondents and what is stated in the CMA Fl that the cause of
action arose on 1st May, 2019 but failed to get the basis of that
assertion as to why it was stated the cause of action arose on 1st May,
2019. To the contrary the court has found the cause of action is
supposed to be taken it arose on the date when the respondents
wrote their letters of resigning from their employment or from the
date when their letters were replied by the applicant. Therefore,
counting from when the respondents wrote their letters of resigning
from their employment or from when the applicant replied their letters
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it is crystal clear that the dispute filed in the CMA on 20th May, 2019
was out of thirty days provided under Rule 10 (1) of the GN. No. 64
of 2007.
The court has considered the argument by the counsel for the
respondents about the principle of exclusion and inclusion of the days
provided under Rule 4 (1) and (2) of the GN. No. 67 of 2007 but find
that, even if the said principle is applied in the present application, it
does not establish the matters filed before the CMA by the
respondents were within the time prescribed by the law. The court
has found that, as stated hereinabove the matter was filed at the CMA
out of time and the case of Barclays Bank (T) Ltd. (supra) cannot
assist the respondents to establish the matter was filed at the CMA
within the time as argued by the respondents' counsel.
The court has also considered the further argument by the
counsel for the respondents that the respondents were still in the
employment of the applicant up to 25th April, 2019 as stated in the
letter written by the applicant on 10th May, 2019 but find that cannot
be used to establish the dispute was filed in the CMA within the time
prescribed by the law. The court has come to the above finding after
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seeing the cause of action used by the respondent in their dispute is
constructive termination of their employment.
As provided under Rule 7 (1) of the GN. No. 42 of 2007,
constructive termination arose where the employer makes an
employee to resign from the employment because of intolerable
condition of work. That being the position of the matter the court has
found that, resignation of an employee from his or her employment is
required to be counted from when he or she presented his or her
letter of resignation to his or her employer and if he or she has stated
a specific date of his or her resignation in the letter, the specified date
will be the effective date of termination of the employment. That
means the effective date of resignation of the respondents from their
employment with the applicant was 6th April, 2019 when the applicant
replied their letters.
As a matter of procedure, the CMA had a duty before
entertaining the dispute to assess itself as if it has jurisdiction to
entertain the matter or not. As from when the applicant replied the
respondents' letters of resignation up to when the dispute was filed at
the CMA the prescribed time had already passed the respondents
were required to apply for condonation of time to file their dispute at
18
the CMA out of time, but that was never done in the present matter.
Therefore, this court is of the considered view that CMA had no
jurisdiction to entertain the matter which was time bared. As a result,
the court has found the first ground that the CMA erred in
entertaining the dispute filed therein out of time is meritorious and
deserve to be upheld.
Although the above finding would have been enough to dispose
of the matter but the court has found it is pertinent to continue to
determine the second ground of revision which states the arbitrator
erred in causing the applicant to start adducing their evidence instead
of starting with the respondents who were supposed to establish that,
they were really forced to terminate their employment. The court has
found as stated earlier in this judgment it is not disputed that the
respondents resigned from their employment as exhibited by their
letters dated 1st April, 2019 and 22nd March, 2019 respectively.
As rightly argued by the counsel for the applicant Rule 7 (3) of
the GN. No. 42 of 2007 states clearly that where an employer makes
an employment intolerable which may result to the resignation of the
employee, that resignation amount to forced resignation or
constructive termination. The position of the law as stated in number
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of cases including the case of Kobil Tanzania Limited (supra) cited
in the submission of the counsel for the applicant is very clear that,
the onus to prove termination of employment by employee was due
to intolerable working condition at the place of work is casted on the
shoulder of the employee.
Since the respondents were the one terminated their
employment on allegation of intolerable condition at the place of work
caused by the applicant the respondents were required to start
adducing their evidence to prove the allegation and thereafter the
applicant would have been required to disprove what was said by the
respondents. To the contrary the court has found in the instant
application the hearing of the matter at the CMA went vice versa as
the applicant was caused to start to adduce their evidence to disprove
the allegation of the respondents before the respondents proved their
alleged which is like putting a cart before the horse.
The court has considered the argument by the counsel for the
respondent that the CMA was right to start with hearing of the
evidence of the applicant because section 39 of the ELRA requires the
employer to prove termination of contract of an employee was fair
both substantively and procedurally but find as stated in the case
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Kobil Tanzania Limited (supra) the duty to prove constructive
termination is casted on the shoulder of an employee and not on the
shoulder of an employer. In the premises the court has found the
proceedings of the CMA is irregular as it was conducted contrary to
the required procedure.
As the first and second grounds of revision have been found are
meritorious the court has found there is no need of belabouring to
deal with the rest of the grounds of revision. In the upshot the
application filed in this court by the applicant is hereby granted. The
c
whole proceedings of the CMA are hereby nullified for being irregular
and the impugned award issued by the CMA is accordingly quashed
and set aside as the CMA had no jurisdiction to entertain the dispute
which was filed before it out of time and without an order of
condonation of time. It is so ordered.
Dated at Dar es Salaam this 25th day of January, 2022.
I. Arufani
JUDGE
25/01/2022
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Court: Judgment delivered today 25th day of January, 2022 in the
presence of Ms. Stella Rweikiza, Advocate for the Applicant and in the
presence of Mr. Godfrey Ngassa, Advocate holding brief of Mr.
Edward Kikuli, Advocate for the Respondent. Right of appeal to the
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