The Citizen (Dar es Salaam)
Bernard James
15 May 2008
Eighteen retirees of the Muhimbili National Hospital (MNH) have taken their former employer to court demanding the payment of Sh31.4 million, which they allege was unlawfully deducted from their terminal benefits.
The retirees, who recently filed the petition at the High Court (Labour Division) claim that upon their voluntary retirement in 2005, MNH deducted the amount without sufficient explanation.
They argue that the decision was illegal, and against the existing labour and employment laws. Hospital authorities have expressed surprise at the claim.
But in a letter, written in May 2006 to the former employees' advocate, the hospital management maintained that the retirees had no rightful claim to the money since it was deducted and duly remitted to the Tanzania Revenue Authority (TRA) as tax.
MNH insists that terminal benefits have always been subject to tax deductions.
However, the retirees claim the deductions were unlawful and have sought a court declaration to have the hospital pay them back the Sh31.4 million.
The labour dispute, which has been referred to the High Court by the Labour commissioner, will be heard again today.
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