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Employer Of Record In Morocco

Employer Of Record In Morocco

Skuad’s Morocco EOR solution helps you expand your business effortlessly without worrying about the complexities of the hiring policies in the country. From recruitment, payroll management, and employee management to probation, regulation, and managing provincial laws, Skuad does all that for you without requiring you to set up a separate legal entity. Talk to a Skuad expert today and know how you can expand into Morocco in the most hassle-free manner.

Employment contract Morocco According to the employment contract, the foreign employment contract must agree with the rules laid by the Ministry of Labor. The National Agency for Promotion of Employment and Skills (ANAPEC) is an entity that ensures that the foreign employment contract fulfills the laid down laws. It also ensures that the foreign employees only get hired, when the current position cannot be filled by the resident.
Moroccan Compensation laws Morocco does not have any legal wage control norms except the minimum wage. Employees are free to decide the payment norms and amount.
Standard working hours The working hours should not increase 8 hours a day or 48 hours a week. Twenty-six (26) days or 191 hours make an entire working month.
Employment agreement Morocco states that employees should not exceed 2 hours of overtime per day and 80 hours of overtime per year. For the daytime shift (6 am- 9 pm) the overtime compensation is 125% of basic salary and 150% for the nighttime shift (9 pm - 6 am).
Overtime during public holidays and weekends is 150% during daytime and 200% for nighttime.
Forms of wages However, the salaries should be paid twice a month with the salary receipt.
Employees must get regular hikes and bonuses.
  • National minimum wage
  • Complimentary annual salary
  • Vacation salary
Employee health benefits Morocco Any organization employing more than 50 people must provide free medical services. All companies and organizations are required to meet the standard safety regulations in the country.
Maternity leave is 14 weeks of paid leave, and paternity leave is 3 days.
Paid time off Most companies work six (6) days a week, and employees are entitled to one day off. Employees are also entitled to paid leaves, calculated as two (2) days for each month.
  • New Years Day (Jan 1)
  • Anniversary of Independence Manifesto (Jan 11)
  • labor Day (May 1)
  • Eid- al- Fitr (May 13-16)
  • Eid- al- Adha (Jul 19-21)
  • Throne Day (Jul 30)
  • Islamic New Year (Aug 8-9)
  • Oued Ed-Dahab Day (Aug 14)
  • Revolution (Aug 20)
  • Birthday of King Mohammed VI and Youth Day (Aug 21)
  • Prophet's Birthday (Oct 18-20)
  • Green March Day (Nov 6)
  • Independence Day of Morocco (Nov 18)


Morocco At A Glance

This North African country is at the border of the Atlantic Ocean and the Mediterranean Sea.

Population: 37 million (2020)

Currency: Moroccan dirham (MAD)

Capital city: Rabat

Language: Moroccan Arabic, French

GDP: $ 332 million (2019)

Employment in Morocco

The Ministry of labor has laid down the contract for the national and foreign employees, and they manage them to make sure the guidelines are getting followed.

Let us take a sneak peek into Morocco's employment laws to understand the entitlements such as employee benefits, working hours, paid time-offs, national holidays, etc.

To ensure compliance with the Moroccan employment laws, Contact Skuad today.

Contract vs. Full-Time Employee

There are three types of employment which you will mostly find in the service sector. They are fixed-term, indefinite term, and job completion. Fixed-term contracts are usually for 12 months, and they can be renewed over once, whereas indefinite term contracts do not have any expiration date.

In the case of a fixed-term contract, if the employer's working contract expires, the fixed-term contract will automatically turn into an indefinite term. It has a different expiry date according to their working position.

Foreign workers employed on a salary basis get paid in Moroccan currency twice a month with receipts of the individual transaction that varies according to the wages. Employees are guaranteed a periodic increase in their salary based on their efficiency, working potential, and work responsibilities.

In the case of a manager, the contracts cannot exceed three months. In the case of employees, it cannot exceed a month and a half, and in the case of laborers, it cannot exceed 15 days.

Employers must issue an employment card and get it renewed annually from the labor office.

The employment contract law in Morocco includes the rights and responsibilities that an employee in Morocco enjoys:

  • Flexible working requests after 26 weeks
  • Protection against dismissal
  • Action over health and safety issues and more

Hiring in Morocco

Employees hired in Morocco should be given a written contract, which must be written in the local language (Moroccan Arabic). Due to the country’s extensive compliance laws, it can get challenging to hire. All the fixed term and indefinite contracts are under compliance laws. The contract should mention the working hours, salary, termination terms, etc. According to the compliance laws, two copies of the contract duly signed must be legalized by the competent authority.

Some of the job search websites in Morocco are:

Employers post vacancies on these job portals to hire employees in Morocco. 

Morocco Employment Compliance Laws aim to protect the rights of laborers, including the right to bargain. Approximately 23% of the Moroccan population is unionized. Hence, the employers must meet all the regulations laid down by the union. Areas covered by the Morocco Labor Laws include:

  • Conditions of employment and work.
  • Termination of employment.
  • Wages and minimum wage.
  • Minimum age for employment.
  • Maternity protection.
  • Workweek hours and overtime.
  • Paid annual and holiday leave.
  • Labor inspections.

There is no specific guideline to hire employees in Morocco. However, the employer must ensure they are compliant through each step of the hiring process. Skuad offers the best in class benefits through our Employer of Record solution. Skuad uses existing subsidiaries to help the employers get started in just a few days and hire the employees on your behalf. Experience a positive hiring process by partnering with Skuad.

Probation and Termination in Morocco

The standard probation period stands out differently for every different working position. For a manager, the probation period must not exceed six (6) months. The probation period for employees is three (3) months. In the case of workers, the probation must not exceed more than 15 days. The usual probationary period stays up to 12 months( one year). Moreover, the probation renewal process gets completed only once. The probation period in Morocco can be terminated in the contract at any time, subject to seven days of notice.

In case of termination of employment, every worker gets entitled to a one-month notice period but, if the worker causes a severe offense, they can get terminated from the contract without notice. The employees who have experience of over one year and have worked under a particular company are eligible for compensation at the time of termination. 

To ensure compliance with the Moroccan employment laws, Contact Skuad today.

EOR Solution

By partnering with an EOR such as Skuad, a company can free up its resources for recruitment and other HR-related aspects. Therefore, working with an EOR is the best way to enter the Moroccan workspace. By utilizing Skuad’s unified employment platform, you remain on track with your business expansion without establishing a subsidiary to take care of the employee management process.

Skuad is proficient in creating tailor-made contracts in compliance with the local laws. Our expertise extends into amending existing contracts and speedier hiring with practices such as the e-signing of documents. Book a demo today.

Types of Visas in Morocco

Types of Visa

Types of Visa
  1. Morocco tourist visa - also known as the short-term visa, is usually permitted to every person who wants to visit morocco. The duration implied in this visa is a maximum of 3 months. However, not everyone needs a tourist visa to travel. Some are allowed free entry on tourist visas which can get issued to anyone. Some of the purposes for which this visa gets issued are-
    • Business
    • Personal visit
    • For sports event
    • Tourism
    • Journalism
    • Medical treatment
  2. Morocco transit visa - It is authorized to a foreigner traveling three times across the territory, but the duration of this visa lasts only 72 hours.
  3. Long-term Morocco visa - It is issued to those who are likely to travel for work or the purpose of study or family reunification. Their technical validation is about three months.
  4. Morocco's work visa is said to be the long–term Morocco visa issued to foreigners who come to Morocco for work purposes or join family members or any other long-term work.
  5. Just like the tourist visa, the technical validation of this visa is for three months. This type of visa allows the holder to apply for a Residency Card.
Types of Work Visa All foreigners are required to hold a valid work visa to work legally in Morocco. Since Work Visa is under long- term visa, it is classified into three visa types:
  • Work Visa: Employees looking for a job in Morocco must hold a work visa.
  • Student Visa: Foreigners who want to study in Morocco must have a student visa.
  • Family reunification visa: This is applicable for the families of foreign nationals who are working in Morocco.
Morocco works visa requirements The required documents are the main requirements of Morocco's visa, and these documents are compulsory for issuing a work visa to Morocco:
  • The Morocco visa application form
  • Your passport and photocopies of your passport
  • Passport size picture
Forms of wages However, the salaries should be paid twice a month with the salary receipt.
Employees must get regular hikes and bonuses.
  • National minimum wage
  • Complimentary annual salary
  • Vacation salary
  • Proof of accommodation
  • Proof of sufficient financial means
  • Travel insurance
  • Proof of paid Morocco visa fee
The specification on visa according to your purpose of visiting Morocco is-
  • If you are traveling for business, you will need the invitation letter of that respective company and a recommendation from the proper Ministry.
  • If you are traveling to attend any conference, you will need the joining letter of that individual organization, or if you are a govt worker, you will need your mission order.
  • If you are traveling for journalism work, you will need the proper approval from the govt. Authority of the communication ministry, support to film Morocco from the Ministry of Foreign Affairs and international cooperation, and a list of all the filming equipment you are bringing.
  • If you are traveling to attend cultural sports events, you will need an invitation from Morocco's event department. If organized by a private organization, the invitation from the relevant ministry.
  • If you are traveling for medical treatment, you will need a medical certificate and proof that you can afford the treatment

Work Permit Morocco

To obtain the work permit, the employees must apply for a Morocco working visa at a diplomatic mission in their country. The steps for the same are as follows:

  • Make an appointment at the Morocco consulate or embassy
  • Complete the visa application form
  • Gather the required documents
  • Submit all necessary documents at the embassy or consulate
  • Pay the visa fee
  • Wait for the visa to get processed
  • Get the visa

If the employee does not have a local embassy or consulate, they must check if the Moroccan government will handle the visa submission with another agency or diplomatic authority. If not, the employees can directly apply to the Moroccan Ministry of Foreign Affairs and International Cooperation. Once the visa is approved, the employee can pick it up at the airport.

If you need a work permit for Morocco without a job offer, you have to stay there for 15 days and apply for the residency card or job offer cause the critical requirement of a work permit in Morocco is the employment contract.

Payroll and Taxes in Morocco

Foreign countries operating their business in Morocco may find trouble and difficulty with Morroco's tax system. The main concerns that foreign companies must look into concerning tax laws in Morocco are:

  • (IIT) Industrial Income Tax
  • Business Tax
  • Social security cost
  • VAT

Moroccan companies have the following main payroll options:

  • Remote: Remote payroll is beneficial for large companies with many employees working at the parent company and the subsidiary. Employers can add all employees under one payroll. However, it is necessary to remember that employees from different countries will have different regulations.
  • Internal: Employers can also choose to run an internal payroll out of your subsidiary if you are based in Morocco. However, the organization will have to hire HR staff having the necessary knowledge of the country’s compliance laws.
  • Morocco payroll processing company: Organizations can choose to collaborate with a Moroccan payroll processing company that will take care of setting up their payroll. However, the organization will still need to make sure your outsourced payroll is compliant. Skuad’s unified employment platform enables seamless payroll management for organizations in Morocco.

Morocco's payroll taxes are not very different from other countries. Taxation is a significant part of Morocco's economy. There is a tax on personal income and residence purposes. According to the information, Morocco's payroll taxes rate is from MAD 0 to 300,000.

Information Explanation
Corporate Income Tax Current Corporate Tax Rate- 30%
Tax rate for Banks and Financial Institutes- 37%.
Payroll Tax None
Sales Tax VAT is imposed on the supply of Moroccan goods and services.
Standard VAT is 20% with reduced rates of 14%, 10%, and 7%.
Withholding Tax (WHT) WHT is imposed on foreign nationals as follows:
Dividends- 15%
Royalties, patents, technical assistance fees and remuneration - 10%
Interest: 10%, 20%, 30%
Equipment rental- 10%
Indemnity for non- permanent employees- 30%
Income tax rate
Gross Income (MAD) Tax Rate (%)
0- 30,000 0
30,001- 50,000 10
50,001- 60,000 20
60,001- 80,000 30
80,001- 180,000 34
Above MAD 180,001 38

To ensure topnotch payroll management and tax compliance, contact Skuad today

Incorporation

Types of companies in Morocco:

  1. Sole Proprietorship:
  2. For a foreigner to establish a sole proprietorship company, it must be registered with the Commercial Registry and the national tax authority.
  3. General Partnership:
  4. All partners are equally liable to the company without any limitation.
  5. Limited Partnership:
  6. There must be at least one partner who has unlimited liability for the company’s debts. A managing partner generally takes this role. Other partners are liable for only limited shares.
  7. Societe a Responsabilite Limitee (SARL):

It is also known as a Limited Liability Company (LLC). The business structure for an LLC is as follows:

  • No legal requirement to have minimum share capital. The maximum number of allowable shareholders is 50.
  • The company gets managed by one or more managers appointed by the shareholders. The manager is responsible for running the company.
  • The shares of the shareholders get freely transferred to the spouses and parents.

Morocco gives an ample opportunity to other foreign countries to set their business at a minimum rate of $1000. Morocco also allows employers to make their own choices on their employment after 26 weeks of their work.

PEO (Generic information & comparison with EOR)

A professional employer organization, Morocco manages all HR-related functions, such as compliance policies of the country, employee benefits, payroll management, taxes, and risk management. A PEO firm acts as a co-employer, while an EOR firm acts as a legal employer.

Businesses willing to expand into another country must establish a legal presence in the country. Collaborating with a PEO firm will require the companies to set up a legal entity separately. However, when you partner with an EOR team, you can legally start working and hiring employees in the country as it is already a legal employer.

A PEO can take over the responsibilities and liabilities of the company and handle all HR-related matters. An EOR company allows organizations to set up legal entities in different countries and mark their presence in the global market.

Skuad’s integrated platform acts as an EOR solution. Its unified employment platform manages all HR-related functions, right from recruitment to termination, everything is handled by the single platform of Skuad. You can build an efficient team of workers remotely while complying with the local laws. Skuad handles all the functions such as onboarding workers both full-time and contractors, managing their payroll and taxes, etc.

Connect with us and elevate your business prospects while saving your time and money with the advanced EOR solutions of Skuad.

Conclusion

Morocco is a developing nation making steady economic progress. As employability grows in this North African country, it can be concluded that the near future can see the development of this country in leaps and bounds. The employers enjoy several rights and responsibilities as we move further to know more about this country and its employment opportunities.

Skuad is a Global Employment Platform that makes it easy for companies to build remote tech teams. We onboard contractors, hire employees, manage invoices and handle payroll irrespective of where your team operates.

Contact us here to learn more.

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