Exploring the Challenges of Labour Law Unawareness on Employee Performance in the Tanzanian Insurance Industry
DOI:
https://doi.org/10.59413/eafj/v5.i3.5Keywords:
Challenges faced by Employees, Labour Law, Awareness, Unawareness, Employee Performance, Insurance IndustryAbstract
This study assessed challenges faced by employees due to unawareness of labour laws and their influence on employee performance in the insurance sector in Tanzania, using Arusha Municipality as a case study. The study examined challenges encountered by employees in their workplace environment, including those resulting from non-compliance with labour laws, workplace conditions, and facilities. It specifically looked at compliance regarding employment contracts and management practices and their influence on employee performance. By Adopting Hyde’s Labour Legislation Theory, this study used a qualitative approach and exploratory design. Semi-structured interviews were conducted with 40 respondents from 21 private insurance companies in Arusha; data were then thematically analysed using NVivo software. The study revealed that 40% of employees were aware of labour laws, 8.6% were partially aware, and 51.4% were not aware. Consequently, they faced challenges such as delays in contract renewals, fear of termination (insecurity), the use of outdated equipment (e.g., old computers), poor working conditions (e.g., substandard furniture), and poor mediation by Human Resource departments. This study recommends that employers resolve these challenges by ensuring the timely provision of contracts and conducting regular inspections of facilities. Furthermore, organisations should introduce policies to maintain a conducive environment by providing modern equipment and furniture. Finally, Human Resource officers should act as a bridge between employers and employees rather than protecting only the employer's interests. This study emphasises the necessity of organised labour law education to promote fair working conditions, improve employee performance, and enhance organisational effectiveness.
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