Assessing the Role of Labour Laws Awareness on the Performance of the Insurance Industry in Tanzania

This study examined how knowledge of labour laws impacted employee performance in the insurance sector in Arusha Municipal, Tanzania. It investigated the effects of awareness regarding basic labour rights, employer obligations, and organisational strategies for legal education on workplace outcomes. Adopting Hyde’s Labour Legislation Theory, a qualitative exploratory design was used, with 40 participants from 21 private insurance companies interviewed. Data were analysed via thematic analysis using NVIVO software. The results revealed that employees lacked knowledge of labour laws; 45.7% of respondents were unaware, 40% were aware, and 14.3% were partially aware of fundamental labour rights. Conversely, regarding employer responsibilities, 51.4% were not aware, 40% were aware, and 8.6% were partially aware. The study established that nearly half of the respondents lacked knowledge of fundamental labour rights and employer responsibilities, leading to low motivation, high turnover, and job insecurity. Additionally, the study found that employers made few efforts to advance legal literacy, further eroding worker performance and trust. The study recommends that employers comply with the state principal labour legislation, the Employment and Labour Relations Act 2004 R.E. 2025 and adopt measures to raise awareness such as initiating training programs, using technology, and collaborating with legal experts to enhance employee commitment and performance