The Worker and the Nature of the Employment Relationship According to the Labor Relations Regulation Law

Before defining who the worker is according to the Labor Relations Regulation Law, it is essential to clarify the definition of the employer. An employer is any natural or legal person who employs one or more workers in exchange for remuneration.

A worker, on the other hand, is any natural person authorized by the Ministry to work for a licensed establishment in the country under the supervision and direction of the employer.

Definition of an Employment Contract

An employment contract is a consensual agreement governed by civil transactions law, requiring the exchange of offer and acceptance for its conclusion. It does not require a specific formality. However, the legislator has dedicated a specific law for employment contracts—Federal Law No. 33 of 2021 on the Regulation of Labor Relations—which defines an employment contract as:

“An agreement concluded between the employer and the worker, where the latter undertakes to work under the supervision and direction of the employer in return for remuneration, in accordance with the contract models specified by the executive regulations of this law.”

To emphasize that an employment contract is not a formal contract, the Labor Relations Regulation Law allows for proof of the contract and all its details—such as wages, job type, and duration—by all means of evidence. Article 8(2) of the law states:

“The worker or their representative may prove the employment contract, the wage amount, and any rights they are entitled to under this law, its executive regulations, and its implementing decisions, by all means of proof.”

The law also permits employers and workers to include special conditions in their employment contracts, provided these conditions do not reduce the rights granted to workers by law. In other words, additional benefits for the worker are allowed, but any condition that diminishes their rights is deemed null and void.

Employment Contract Under Civil Transactions Law

The definition of an employment contract in civil transactions law does not significantly differ from that in the Labor Relations Regulation Law. Article 897(1) of the Civil Transactions Law defines an employment contract as:

“A contract in which one of the parties commits to performing work for the benefit of the other under their supervision or management in exchange for remuneration.”

For this definition to apply to an employment relationship, the agreed work must have a specific duration, and the worker must be exclusively dedicated to the employer. A worker cannot be engaged by another employer simultaneously.

If a worker is allowed to work for multiple employers, their relationship would not be considered an employment contract under this definition but rather a contracting agreement (mukawala), where a contractor can work for multiple clients simultaneously.

Duration of the Employment Contract in Labor Laws

The legal framework regarding employment contract duration has evolved through different legislative stages:

1. First Stage: The previous Labor Law (Federal Law No. 8 of 1980) allowed for both fixed-term and indefinite-term contracts. If a contract was fixed-term, its duration could not exceed four years, with the possibility of renewal for a similar period or multiple extensions.
2. Second Stage: The Labor Relations Regulation Law No. 33 of 2021 abolished indefinite-term contracts and mandated fixed-term contracts with a maximum duration of three years. Article 8(3) states:
   “An employment contract shall be for a fixed term not exceeding three years. The contract may be extended or renewed for another similar or shorter duration, once or multiple times, by mutual agreement.”
   This provision mandated that contracts must be fixed-term, not exceeding three years, though they could be for a shorter period.
3. Third Stage: Federal Decree-Law No. 14 of 2022, amending Federal Decree-Law No. 33 of 2021, maintained the requirement for fixed-term contracts but removed the specific time limit. Article 8(3) now states:
   “An employment contract shall be for a fixed term, renewable as agreed upon by both parties.”
   This amendment allows contracts to be renewed without a predefined maximum duration