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Morocco

International Employment Law Guide

This page outlines country-level details about the onboarding process when hiring employees, and touches upon the applicable rules when terminating employment contracts.

A. Hiring of employees (onboarding)


1. Mandatory Employer Requirements


In Morocco, the employer is required to comply with the rules set out by the Labor Code and collective agreements. Specifically, the employer must (Article 24 of the law 65-99 constituting the Labor code (the “Law”)):

  • Pay a salary that meets the minimum wage (SMIG);
  • Inform employees in writing at the time of hiring about:
    - The collective agreements signed by the company, if applicable;
    - The internal regulations;
    - The working hours and weekly rest arrangements;
    - The payment methods of salaries;
    - Registration with the CNSS (National Social Security Fund);
    - The identification of the insurance organization against work accidents and occupational diseases.
  • Take all necessary measures to ensure the safety, health, and dignity of employees during the performance of tasks under their direction and ensure the maintenance of good conduct and morality rules within the company.

2. Probation periods (Période d’essai)
 

The probation period is authorized in all types of employment contracts in Morocco whether fixed-term or indefinite-term.

It is important to note that the probation period is not mandatory and varies depending on the type of contract, which determines its duration.

  • For indefinite-term contracts, the probation period is set at:
    - 3 months (90 days) for executives and similar positions;
    - One and a half months (45 days) for employees;
    - 15 days for workers.
  • For fixed-term contracts, the trial period is set at:
    - One day for each week of work, up to a limit of two weeks for contracts shorter than 6 months;
    - One month for contracts longer than 6 months.

Companies subject to a specific status or a collective agreement that imposes a trial period and sets its duration must apply these clauses by default (Articles 13 and 14 of the Law).

The probation period for indefinite-term contracts can only be renewed once for the same duration and must be done in writing. Indeed, its renewal is not automatic. In the absence of a written agreement, the employee is considered automatically confirmed in their position.

For fixed-term contracts, the probation period cannot be renewed under any circumstances.

The legislator has provided the possibility for either party to voluntarily terminate the probation period without notice or severance pay. However, notice is required if the termination of the probation period:

- Is not due to serious misconduct by the employee;
- Occurs after at least one week of work.

The duration of this notice period is fixed according to the frequency of the employee's remuneration as follows:   

Periodicity of the employee's remuneration

Duration of notice period

If the employee is paid on a daily, weekly or fortnightly basis

2 days

If the employee is paid by the month

8 days

3. Hiring checks


Medical examination


According to articles 168, and 290 of the Law:

  • The employer must subject disabled employees whom they intend to hire to a medical examination;
  • The employer must require a medical examination for employees they plan to recruit for jobs that require a prior medical assessment.

Additionally, Article 327 specifies that in companies obliged to have an occupational health service, every employee must undergo a medical examination by the occupational health physician either before hiring or, at the latest, before the expiration of the probation period.

Criminal background check
 

Requesting a criminal background check is a common practice in Morocco's employment process, particularly during hiring. While the Law does not explicitly mandate such checks, it is widely recognized as a necessary measure in ensuring workplace safety, security, and integrity.

This practice allows employers to assess the suitability of candidates, especially for roles involving sensitive responsibilities or trust. However, employers must ensure that the request for a criminal background check is relevant to the position being offered and is conducted in a manner that respects the candidate's privacy rights.

Reference and education checks
 

While not explicitly regulated by Moroccan labor law, reference and education checks are standard practices in the hiring process to verify a candidate's qualifications and background. Employers must conduct these checks in a manner that respects privacy and non-discrimination principles.

4. Diversity & inclusion
 

Article 9 of the Law prohibits any infringement on the freedoms and rights related to union activities within the company, as well as any discrimination based on race, color, sex, disability, marital status, religion, political opinion, union affiliation, national origin, or social origin, which would violate or alter the principle of equal opportunity or equal treatment in employment or the exercise of a profession.

This includes, in particular, matters of hiring, work conduct and distribution, professional training, salary, advancement, granting of social benefits, disciplinary measures, and dismissal.

However, the Moroccan legislator has not established any diversity quotas for hiring.

5. Types of employment contracts
 

According to Article 16 of the Labor Code, the employment contract can be concluded for an indefinite period, for a fixed period, or for the completion of a specific task.

  • The indefinite-term employment contract (Contrat à Durée Indéterminée "CDI") is the normal and general form of an employment contract.
  • The fixed-term employment contract (Contrat à durée Déterminée "CDD") is the exceptional form of an employment contract, authorized only in cases where the employment relationship cannot be of indefinite duration due to either the nature of the work to be performed or the conditions under which the work must be completed. According to Articles 16-3 and 17 of the Law, the CDD can only be concluded for the execution of a specific and temporary task in the following main cases:

    - Replacement of an absent employee;
    - Increase in the company's activity;
    - Seasonal employment;
    - In the case of a new business opening, either when opening a new establishment or launching a new product;
    - For the agricultural sector, for a duration of 6 months, renewable 3 times, up to 24 months.
    - The fixed-term contract, not intended for employment related to the company's normal and permanent activity, must necessarily be time-limited. Its duration cannot exceed a maximum of one year, renewable once for the same period.

Fixed-term contracts cannot be renewed indefinitely. The Law prohibits the indefinite renewal of CDDs to prevent the circumvention of employment protections that are typically afforded to employees under indefinite-term contracts (CDI).

  • The temporary employment contract (Contrat De Travail Temporaire "CTT") is applicable in the cases specified by Article 496 of the Law, namely:

    - Replacement of an employee in the event of absence or suspension of the employment contract, provided that the suspension is not caused by a strike;
    - Temporary increase in the company's activity;
    - Execution of seasonal work;
    - Execution of work for which it is customary not to conclude an indefinite-term employment contract due to the nature of the work.

The requirement for a written contract is not mandated by Law. However, if the contract is concluded in writing, the employment contract must be prepared in two copies, each signed by both the employee and the employer. These signatures must be authenticated by the competent authority. One of the two copies is retained by the employee (Article 15 of the Law).

6. Specific rules for executives
 

There are no specific rules under the Moroccan Law for hiring executives. Executives are subject to the same general regulations as other employees. The hiring and employment terms of executives are governed by the same provisions that apply to all employees.

7. Language requirements
 

In Morocco, all HR documents must be presented in Arabic or French.

8. Equal Pay
 

Article 346 of the Law mandates that there should be no wage discrimination based on gender when the work performed is of equal value. This provision ensures that men and women receive equal pay for equal work, promoting gender equality in the workplace. Employers are required to provide the same salary to employees, regardless of gender, when they perform similar roles or tasks that are of equal importance and complexity.

9. Remote Work
 

The Moroccan Labor Code does not contain specific provisions on remote work. However, the general principles regarding working conditions, health and safety, and the rights and obligations of workers also apply to remote work. Employers are additionally obligated to provide employees engaged in remote work with the necessary equipment to perform their duties effectively.

B. Termination of employees (Offboarding)
 

1. Kinds of dismissal


In Morocco, the law provides for two types of dismissal: dismissal for disciplinary reasons or inaptitude, and dismissal for economic reasons, as explained in the following section no. 9.

Disciplinary Dismissal results from an employee's fault, which may involve an act or wilful omission that leads to a breach of their contractual obligations. Dismissal can be classified as either dismissal for minor misconduct or dismissal for serious misconduct.

- Minor Misconduct is assessed by the employer, who must adhere to a sanction scale defined in Article 37 of the Law, including: a warning, a reprimand, a second reprimand or suspension for a maximum of 8 days, and a third reprimand or transfer to another department or establishment, taking into consideration the residence of the offending employee.

- Serious Misconduct results in the immediate dismissal of the employee. The cases constituting serious misconduct are listed in Article 39 of the Law (i.e. theft, public drunkenness, serious insult, physical assault, etc.)

Dismissal for Inaptitude :

- The courts recognize that an employee's inaptitude does not always stem from their physical or mental condition. It can also arise from their inability to adapt to technological innovations directly related to their job, lack of dynamism, professional insufficiency, or inability to meet the objectives generally achieved by other employees in the same position.

2. Dismissal motivation


In Morocco, the legislator does not permit employers to dismiss employees without valid reasons (Article 35 of the Law). Every employee must be informed of the reasons for their impending dismissal and has the right to defend himself or contest the decision. The reason for dismissal must be clearly expressed in the minutes of the dismissal decision.

An employer who dismisses an employee without a valid reason can be sued for wrongful dismissal and may be required to pay damages (Article 41 & 59).

In ruling No. 1009/ Social Case No. 50/5/1/2008 of the Court of Cassation, it was reiterated that Article 64 of the Law specifies that the dismissal decision must include the reasons justifying the employee's dismissal, the date on which the employee was heard, and must be accompanied by the minutes of the preliminary interview. Therefore, if the employer’s dismissal decision only states that the concerned employee committed serious misconduct without expressly specifying the nature of the misconduct, such a decision remains abusive.

3. Notice period – Préavis


In accordance with Article 43 of the Law, the unilateral termination of an indefinite-term employment contract is subject to the observance of the notice period in the absence of serious misconduct by the other party.

The notice period and its duration are regulated by legislative and regulatory texts, the employment contract, the collective Labor agreement, the internal regulations, or customary practices.

The notice period for unilateral termination of an indefinite-term employment contract is set by Decree No. 2-04-469 of December 29, 2004, according to the employee's professional category and seniority as follows, and begins the day after notification of the decision to terminate the contract.

During the notice period, both parties must continue to fulfil the obligations arising from the employment contract.

Thus, the employer must continue to remunerate the employee, who must remain available and perform their work.

To search for another job, the employee may take leave during the notice period as follows (Articles 48 to 50 of the Law):

- 2 hours per day;
- Up to 8 hours per week;
- Up to 30 hours over 30 consecutive days.

If the workplace is more than 10 kilometers from a municipality, the employee may benefit from:

- 4 consecutive hours twice a week;
- 8 consecutive hours once a week.

These hours of absence, remunerated as actual working time, must be agreed upon between the employer and the employee. In case of disagreement, they are determined alternately, once by the employee and once by the employer.

This leave of absence ends when:

- The employee finds a new job;
- The employee stops dedicating this absence to job searching.

4. Severance pay – indemnités de licenciement


Severance pay is mandatory for any employee under a permanent employment contract (CDI) who has completed at least six months of work with the same company and has not committed serious misconduct, regardless of the method of remuneration and the frequency of salary payment (Articles 52 and 61 of the Law).

The amount of severance pay for each year or fraction of a year of effective work is as follows:

Years of actual work performed

Compensation due equivalent to

5 years of seniority

96 hours of salary

6 to 10 years

144 hours of salary

11 to 15 years

192 hours of salary

Over 15 years

240 hours of salary

More favorable provisions for the employee may be provided in the employment contract, the collective labor agreement, or the internal regulations.

The severance pay is calculated based on the average salaries received by the employee during the 52 weeks preceding their dismissal (Articles 52 to 60 of the Law). The salary considered in this calculation includes:

- Salary accessories: benefits in kind, tips and commissions, bonuses, and allowances except those:
- Constituting reimbursement of expenses related to work;
- Responsibility allowances (e.g., team leader or group leader allowances) except function allowances;
- Related to allowances for arduous or dangerous work;
- Compensating work performed in dangerous areas;
- Remunerating the temporary replacement of an employee in a higher category or work performed temporarily or exceptionally (except for overtime allowances).

In certain cases, a notice indemnity may be granted if the notice period is not worked at the employer's decision. This indemnity is equivalent to the remuneration the employee would have received if they had remained at their post.

The employer is also required to pay any dismissed employee, regardless of the reason for dismissal, who has not taken part or all of their leave and who has worked for at least one month within the same company, a compensatory indemnity for paid annual leave equivalent to the remuneration the dismissed employee would have received if they had taken their paid annual leave.

5. Dismissal formalities
 

  • Preliminary Interview with the Employee:

    After exhausting the predefined scale of sanctions or in the case of serious misconduct, Article 62 of the Law stipulates that before any dismissal, the employee must be able to defend themselves against the accusations made and explain their position before the employer or their representative, in the presence of the employee’s chosen staff delegate or union representative. This hearing must take place within 8 days from the date of the alleged act.

    A report is then drawn up by the company’s administration and signed by both parties, the employer and the employee, each keeping a copy. This document must include the date and place of the interview, the names of the people present, and the course of the interview.

    If either party refuses to undertake or continue the procedure, the other party may call upon a labor inspector.
  • Letter of dismissal:

    Under Articles 63 and 64 of the Law, the dismissed employee must receive a dismissal letter in person against a receipt or sent by registered mail with acknowledgment of receipt within 48 hours of the dismissal decision, along with a copy of the report containing:

    - The reasons justifying the dismissal provided by the employer;
    - The date of the preliminary interview;
    - The minutes of this interview;
    - The mention of the 90-day period for filing any legal action.

6. Special dismissal protection
 

In Morocco, certain categories of employees are afforded special protection.

Indeed, in accordance with Articles 159 and following of the Law, it is prohibited to dismiss women during:

- The medically certified period of pregnancy;
- 14 weeks after childbirth;
- The period of contract suspension due to a pathological condition.

However, in cases of serious misconduct or any other legal grounds for dismissal, dismissal remains possible provided it is not notified or takes effect during these periods.

If the employee is dismissed before declaring her pregnancy to the employer by medical certificate, the dismissal is annulled if she justifies her condition by sending a medical certificate to the employer by registered mail with acknowledgment of receipt within 15 days of the notification of her dismissal.

Furthermore, employee representatives in the company, staff delegates and their alternates, and union representatives also benefit from special protection under Articles 457 to 459 of the Law during:

- The exercise of their mandate;
- The 6 months following the end of the mandate;
- The election period for candidates for staff delegate positions from the establishment of the electoral lists or for 3 months from the proclamation of the election results.

Dismissal in the above cases is possible but must be approved by the labor inspector within 8 days of their referral by a reasoned decision.

The severance pay for staff delegates or union representatives in the company during their mandate is increased by 100%.

7. Legal means of employees
 

In the event of unfair dismissal, article 65 of the Law provides that a dismissed employee may take legal action before the competent court within 90 days from the date of receiving the dismissal decision.

8. Specific rules for executives
 

In Morocco, executives are subject to the Labor regulations as other employees, with a few distinctions regarding the notice period duration.

9. Collective dismissals
 

The employer in commercial, industrial, artisanal enterprises, as well as agricultural or forestry operations and their dependencies, employing at least ten employees, may terminate the employment contract for economic difficulties or technological changes that necessarily result in the elimination or transformation of jobs (Articles 66 to 71 of the Law).

To avoid being classified as wrongful dismissal, the employer must adhere to an internal procedure that includes informing the employee representatives of the reasons for the decision and all relevant information at least one month before the dismissal of employees. Additionally, the employer must follow an external procedure with the governor of the prefecture or province to request authorization for the collective dismissal.

Get in touch
 

Aymane Jelouane
Morocco
ajelouane@deloitte.com | +212 522 22 47 34

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