1. Case and Background

Katanga Mlungwana v Aga Khan Education Service Tanzania, Labour Revision No. 11206 of 2026, High Court of Tanzania, Labour Division at Dar es Salaam, was decided by Ntemi N. Kilekamajenga, J. on 25 September 2026.

The case concerned the legal consequences of an employer's failure to renew a fixed-term employment contract where the employee had a reasonable or legitimate expectation of renewal.

The applicant had been employed by Aga Khan Education Service Tanzania as a teacher under successive fixed-term contracts since 2017. His most recent contract ran from 1 August 2021 to 31 July 2022. On 20 April 2022, the employer asked him to indicate whether he intended to continue working after expiry of the contract. The applicant confirmed that he wished to continue and returned the signed renewal intention on 21 April 2022. However, on 29 April 2022, the employer notified him that the contract would not be renewed and would terminate on 31 July 2022.

The applicant challenged the decision before the CMA, but his complaint was dismissed. He therefore approached the High Court by way of revision.

2. Material Facts

The important facts were:

1. The applicant had a history of successive renewals.
   He had worked for the respondent since 2017, with previous contracts being renewed for the periods 2017–2019, 2019–2021 and 2021–2022.

2. The employer itself initiated the renewal process.
   On 20 April 2022, the employer asked the applicant to state whether he intended to continue working after 31 July 2022.

3. The applicant accepted the invitation to renew.
   He signed and returned the relevant document indicating his intention to continue working.

4. The employer subsequently changed its position.
   On 29 April 2022, only days after requesting the applicant's intention to continue, the employer informed him that his contract would not be renewed.

5. The applicant argued that these circumstances created a legitimate expectation/reasonable expectation of renewal, making the failure to renew legally equivalent to termination of employment.

3. Issues Before the Court

The principal issue identified by the Court was:

Whether the applicant was unfairly terminated from employment.

This broad issue involved several subsidiary questions:

(a) Whether failure to renew a fixed-term contract can constitute termination

The Court had to determine whether the ordinary rule that a fixed-term contract automatically expires at the end of its agreed period applied notwithstanding the circumstances surrounding the proposed renewal.

(b) Whether the applicant had a reasonable/legitimate expectation of renewal

The Court considered whether the respondent's conduct, together with the applicant's previous renewals, objectively created an expectation that the contract would be renewed.

(c) Whether the failure to renew amounted to unfair termination

If the applicant had a reasonable expectation of renewal, the Court had to determine whether the respondent's decision constituted termination within the meaning of the Employment and Labour Relations Act.

4. Applicable Legal Framework

The decision is particularly important because it applies several provisions of the Employment and Labour Relations Act, Cap. 366 R.E. 2023 (ELRA) together with the Employment and Labour Relations (Code of Good Practice) Rules, 2007, GN No. 42 of 2007.

Section 36(a)(iii) of ELRA

The Court relied heavily on section 36(a)(iii), which provides that termination includes:

failure to renew a fixed-term contract on the same or similar terms where there was a reasonable expectation of renewal.

This provision is crucial because it creates an exception to the ordinary rule that a fixed-term contract simply expires at the end of its term.

Rule 3(1)(c)

Rule 3 similarly recognizes failure to renew a fixed-term contract as termination where there was a reasonable expectation of renewal.

Rule 4(2)

The Court nevertheless acknowledged the general principle that:

a fixed-term contract terminates automatically when the agreed period expires, unless the contract provides otherwise.

Therefore, fixed-term employment does not ordinarily carry an automatic right of renewal.

Rule 4(5)

However, where an employee claims reasonable expectation of renewal, the employee must demonstrate an objective basis for that expectation, such as:

• previous renewals; and

• undertakings by the employer to renew.

5. Court's Holding

The High Court allowed the revision application and set aside the CMA's decision.

The Court held that, although the applicant was employed under a fixed-term contract that was due to expire on 31 July 2022, the particular circumstances created a serious legitimate expectation of renewal. Katanga Mlungwana vs Aga Khan E…

The critical factors were:

First: Previous renewals

The applicant had repeatedly had his employment renewed since 2017. This established a history or practice upon which a reasonable employee could rely.

Second: The employer's renewal communication

The employer did not simply allow the contract to run to expiry. It specifically asked the applicant whether he wanted to continue working.

Importantly, the communication stated that if the applicant intended to continue working, the contract would be prepared and made available for signing by both parties.

Third: The applicant relied on the employer's conduct

The applicant complied with the employer's request and confirmed his intention to continue working.

The Court considered that the employer's conduct could reasonably cause the applicant to expect renewal.

Fourth: Subsequent reversal by the employer

The employer subsequently informed the applicant that his contract would not be renewed.

The Court considered this change of position significant.

6. The Objective Test for Legitimate Expectation

One of the most significant aspects of the decision is the Court's treatment of legitimate expectation.

The Court relied on Dierks v University of South Africa, as applied by the Tanzanian Court of Appeal in Asanterabi Mkonyi v TANESCO, Civil Appeal No. 53 of 2019, and also referred to Ibrahim s/o Mgunga & Others v African Muslim Agency, Civil Appeal No. 476 of 2020. Katanga Mlungwana vs Aga Khan E…

The Court emphasised that the test is objective:

Would a reasonable person in the employee's position expect re-engagement?

The expectation must arise from impressions created by the employer.

Therefore, an employee's mere subjective hope that a contract will be renewed is insufficient.

There must be objective circumstances capable of generating that expectation.

7. Factors Relevant to Reasonable Expectation

The decision provides a useful framework for assessing reasonable expectation. Drawing from Dierks and the Tanzanian authorities, the Court recognised factors including:

• previous renewals;

• employer undertakings or representations;

• agreements between the parties;

• established practice or custom regarding renewal;

• availability of the position;

• purpose for which the fixed-term contract was concluded;

• inconsistent conduct by the employer;

• adequacy of notice; and

• the nature of the employer's business. Katanga Mlungwana vs Aga Khan E…

This demonstrates that reasonable expectation is determined from the totality of the circumstances, rather than from one isolated document.

8. Judicial Significance

1. It strengthens protection of employees on fixed-term contracts

The decision confirms that an employer cannot always rely on the argument:

"The contract simply expired."

Where the surrounding circumstances establish a reasonable expectation of renewal, non-renewal may legally amount to termination of employment.

This is particularly important for employees who have been continuously engaged through successive fixed-term contracts.

2. It distinguishes expiry from non-renewal amounting to termination

The decision does not establish that every failure to renew a fixed-term contract constitutes unfair termination.

The Court expressly recognised Rule 4(2): normally, a fixed-term contract expires automatically.

The important qualification is that where the employee can establish an objective and reasonable expectation of renewal, the statutory definition of termination is triggered.

This distinction is essential for employers and practitioners.

3. Employer communications can create legal consequences

The case is particularly significant from an HR and employment-contract drafting perspective.

The respondent's own communication asking the employee whether he intended to continue working became important evidence supporting the employee's legitimate expectation.

The Court found that such communication could reasonably cause the employee to expect renewal and could generate further commitments on the employee's part.

Practical implication: Employers should exercise considerable care when communicating about possible renewal of fixed-term contracts.

4. Repeated renewals are an important evidentiary factor

The Court treated the applicant's employment history since 2017 as significant.

Repeated renewal does not automatically convert a fixed-term contract into a permanent contract, but it can constitute an objective basis for a reasonable expectation of renewal, particularly when combined with representations or conduct by the employer.

5. Legitimate expectation is objective, not merely subjective

This is perhaps the strongest jurisprudential point.

An employee cannot succeed merely by saying:

"I expected my contract to be renewed."

The question is whether the employer's conduct and the surrounding circumstances would cause a reasonable person to expect renewal.

This gives courts an objective standard for distinguishing genuine legitimate expectations from unsupported assertions.

6. The decision reinforces Tanzanian jurisprudence on fixed-term employment

The judgment builds upon the Court of Appeal's authorities, particularly:

• Asanterabi Mkonyi v TANESCO, Civil Appeal No. 53 of 2019 [2022] TZCA 96;

• Ibrahim s/o Mgunga & Others v African Muslim Agency, Civil Appeal No. 476 of 2020 [2022] TZCA 345; and

• Msafiri Sobo v CRDB PLC, Civil Appeal No. 34 of 2020.

It therefore represents a continuation and application of the Court of Appeal's approach rather than an entirely new legal principle.

9. Final Orders and Remedies

Having found the termination unfair, the Court awarded the applicant:

• 12 months' compensation: TZS 25,107,600

• Severance pay: TZS 563,311

• Leave: TZS 2,092,300

• Certificate of service

• Total monetary award: TZS 27,763,211

There was no order as to costs.

10. Overall Legal Significance

The decision can be distilled into the following proposition:

A fixed-term contract ordinarily expires automatically, but where the employee establishes an objective and reasonable expectation of renewal arising from previous renewals, employer representations, undertakings or other surrounding circumstances, failure to renew may constitute termination under section 36(a)(iii) of ELRA and may consequently be found unfair.

For employers, the decision highlights the need for caution when communicating proposed renewals and when repeatedly renewing fixed-term contracts.

For employees, it confirms that the absence of a new signed contract does not necessarily end the inquiry: the employee may rely on the objective circumstances surrounding the anticipated renewal.

For employment practitioners, the decision is particularly useful because it brings together section 36(a)(iii) of ELRA, Rules 3 and 4 of G.N No. 42 of 2007, and the Court of Appeal's jurisprudence on legitimate expectation, while applying those principles to concrete employer conduct.