Govt bars recruitment agencies from 'employing' workers

At last the government has banned private recruitment agencies operating in the country from employing workers, saying their job was to link job seekers with employers and not otherwise.

The ban follows long overdue complaints from workers accusing recruitment agencies of exploitation and denying them their rights and other benefits they are entitled to in their work places as they are forced to remain in contract with the agencies even after securing employment.

Addressing a news conference in Dar es Salaam yesterday, the Minister of Labour and Employment, Gaudentia Kabaka disclosed that the special team formed to probe the issue has discovered that most of the problems were caused by private recruiting agencies in the country.

Kabaka noted that most of them violated the Labour Relations Act of 2004 and other related country laws.

She explained that private recruiting agencies have been entering into contracts with some companies in need of workers but in the end workers receive low pay contrary to the job agreements signed between the agency and the employer.

She said employees are given short term contracts hence missing opportunities like education, leave and medical insurance.

She said there was a big difference in payment between workers directly employed by the respective companies and those recruited by the agencies. 

“Most of the workers who passed through private recruitment agencies complain of low pay,” she said, adding that sometimes such workers have similar qualifications to those who were directly employed by the respective companies.

Kabaka issued a one-month ultimatum to recruiting agencies that are in contracts with workers in various institutions especially those in telecom companies and banks to release the workers from such contracts so that they are able to sign contracts with their actual employers. 

She also ordered recruitment agencies that operate in the country illegally to register at the ministry within one month. There are over 60 recruiting agencies in Tanzania, some of which operate illegally. 

Kabaka noted that the agencies’ recruitment procedures make the government lose a lot of revenue from employees. She said workers in the country contribute to government revenues through the Pay as You Earn (PAYE) but those in contract with the agencies don’t pay tax.

The Minister noted that for the past three years one of the recruiting agencies has denied the government over 3bn/- which was to be paid as tax to the government.

The special team was formed in July last year to investigate complaints of workers against recruitment agencies.

SOURCE: THE GUARDIAN