Can an employer in Tanzania refuse to issue a Letter of No Objection (LONO) to a non-citizen employee who wants to change jobs? The short answer is that it depends on why the employer is refusing. This article explains what a LONO is, why employers withhold it, when refusal may be lawful, and what employees and employers should do.

Key Takeaways

• A Letter of No Objection is an employer’s written confirmation that it does not oppose an employee’s move to a new employer. It supports applications for new work and residence permits.

• The requirement is not always expressly codified in statute, but it has become an important procedural step in practice.

• Employers may have legitimate grounds to decline, such as breach of contract, outstanding obligations, restrictive covenants or pending disciplinary or legal proceedings.

• Refusal used as pressure, retaliation or a way to retain staff may be challenged as an unfair labour practice before the Commission for Mediation and Arbitration (CMA) or the Labour Court.

Introduction: Changing Employers as a Non-Citizen in Tanzania

The movement of skilled labour between employers is a natural feature of a dynamic labour market. In Tanzania, this becomes legally more complex where non-citizen employees are involved, because their right to work is tied to specific permits issued under immigration and labour laws.

When a non-citizen changes employment, the authorities often require confirmation that the current or former employer has no objection to the transition.

Although this requirement is not always expressly codified as a strict statutory obligation, it has developed into an important procedural element in practice. A refusal by an employer to issue the letter can therefore have significant legal and economic consequences for the employee, effectively restricting their ability to take up new employment.

The regulation of non-citizen employment requires compliance with both labour and immigration frameworks. This article considers the issue mainly under the Employment and Labour Relations Act, Cap. 366 R.E. 2023 (ELRA), and the Non-Citizens (Employment Regulation) Act, Cap. 436 R.E. 2023, together with its regulations.

What Is a Letter of No Objection (LONO)?

A Letter of No Objection is a formal declaration by an employer confirming that it does not oppose an employee’s intention to terminate employment or transfer to another employer. For non-citizen employees, the letter serves as supporting documentation when applying for a new work permit and residence permit. Its purpose is primarily administrative rather than contractual. It does not terminate employment or create new rights. It facilitates regulatory compliance by confirming that the previous employer does not object to the transition.

In principle, a LONO should reflect the true status of the employment relationship. Where employment has ended lawfully, or is being terminated in accordance with contractual and statutory requirements, there should ordinarily be no basis for objection.

Why Do Employers Refuse to Issue a Letter of No Objection?

Employer refusal is often rooted in a combination of legal, contractual and practical considerations. These reasons vary in legitimacy and must be assessed carefully.

Breach of contract

Where an employee resigns without serving the required notice period or otherwise violates agreed terms, the employer may justifiably resist facilitating the transition. Employment is governed by mutual obligations, and failure to honour them can provide grounds for refusal.

Outstanding obligations

An employer may withhold the letter where the employee has not returned company property, settled financial liabilities or completed handover responsibilities. In such cases, refusal is linked to accountability and the protection of business interests.

Restrictive covenants

Restrictive covenants, such as non-compete or confidentiality clauses, may influence the employer’s decision, particularly where the new employment poses a competitive risk. Such clauses must nonetheless be reasonable and enforceable under the law.

Ongoing disciplinary or legal proceedings

If the employee is under investigation for misconduct or involved in unresolved disputes, the employer may argue that issuing a LONO would be premature or inappropriate.

However, not all refusals rest on legitimate grounds. Some employers refuse to issue the letter to pressure employees, discourage resignation or retain skilled labour. Such conduct raises serious concerns under principles of fair labour practice.

Is Refusal Lawful? The Legal Position Under Tanzanian Law

The Employment and Labour Relations Act

The Employment and Labour Relations Act, Cap. 366 R.E. 2023, establishes fundamental principles of fairness, reasonableness and protection against unfair labour practices. The Act does not specifically regulate Letters of No Objection, but its provisions are relevant in assessing the legality of employer conduct.

An employer’s decision must not be arbitrary, discriminatory or made in bad faith. Where a refusal effectively restricts an employee’s right to seek alternative employment without valid justification, it may be challenged as unfair.

The Non-Citizens (Employment Regulation) Act

The Non-Citizens (Employment Regulation) Act, Cap. 436 R.E. 2023, governs the issuance of work permits and emphasises the lawful and regulated employment of non-citizens. It does not expressly give employers absolute discretion over employee mobility, and it reinforces the need to follow established procedures. Employer cooperation in facilitating lawful transitions is consistent with the objectives of this framework.

What Employees Can Do When an Employer Refuses to Issue a LONO

An employee facing refusal should approach the situation strategically and lawfully.

1. Comply with your obligations first: Serve the required notice period, settle any liabilities and complete all clearance and handover procedures.

2. Make a formal written request: The request should state clearly that all obligations have been fulfilled and that the letter is required for immigration purposes.

3. Keep records: Retain all communication with the employer in case of a future dispute.

4. Escalate where refusal is unjustified: Labour officers or dispute resolution bodies may intervene where the refusal appears unreasonable or amounts to an unfair labour practice. The matter may be referred to the Commission for Mediation and Arbitration (CMA), or the employee may seek declaratory orders from the Labour Court under section 95 of the ELRA.

5. Seek legal advice: A lawyer can help you determine the most appropriate course of action.

Guidance for Employers

Employers should exercise caution and legal awareness when handling LONO requests. They are entitled to protect legitimate business interests, but that protection must be grounded in law and supported by clear evidence.

Refusal should be based only on defensible reasons, such as contractual breach or unresolved obligations. Even then, the employer should communicate its reasons clearly and give the employee an opportunity to remedy the situation.

Using refusal as a tool of coercion or retaliation exposes the employer to legal risk and undermines fair labour practice. Facilitating lawful employee transitions, on the other hand, promotes institutional credibility, reduces disputes and supports compliance with regulatory frameworks.

Frequently Asked Questions

Is an employer legally required to issue a Letter of No Objection in Tanzania? The requirement is not always expressly codified as a strict statutory obligation, but it has become an important procedural step in practice. Neither the ELRA nor the Non-Citizens (Employment Regulation) Act gives employers unlimited discretion, and an employer’s decision must not be arbitrary, discriminatory or made in bad faith.

Does a Letter of No Objection terminate my employment? No. A LONO is an administrative document. It does not terminate employment or create new rights. It supports the processing of new work and residence permits.

When can an employer lawfully refuse to issue a LONO? Typical grounds include breach of contract (for example, not serving notice), outstanding obligations such as unreturned property or unpaid liabilities, enforceable restrictive covenants, and ongoing disciplinary or legal proceedings.

What should I do if my employer refuses without good reason? Make a formal written request, keep records of all communication, and escalate to the relevant labour authorities. The dispute may be referred to the CMA, or declaratory orders may be sought from the Labour Court. Obtain legal advice before taking action.

Conclusion

Although administrative in nature, the Letter of No Objection carries significant practical consequences for the employment of non-citizens in Tanzania. Its misuse or unjustified withholding can disrupt careers, create legal disputes and undermine the integrity of labour relations.

A balanced approach is essential. Employees must act in good faith by fulfilling their obligations, and employers must ensure that any refusal is lawful, reasonable and justified. Adherence to the principles of the Employment and Labour Relations Act and the Non-Citizens (Employment Regulation) Act, and its regulations, will promote fairness, efficiency and stability in employment transitions.

Need advice on a Letter of No Objection or non-citizen employment in Tanzania? reach out to us at info@equilexgroup.co.tz