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Morocco makes a compelling case for investment and hiring as it sits at the crossroads of Europe and Africa. With a GDP of 130.91 billion USD (2022), Morocco is the fifth largest economy in Africa, diversified across several sectors, including manufacturing, mining, agriculture, and tourism.
Moreover, the Moroccan government actively encourages foreign investment through tax breaks, subsidies, and simplified business procedures.
However, exploring the employment laws in Morocco is crucial for your success. The Labor Code (Law no. 65-99) serves as the primary framework for employment relations in Morocco.
Other relevant laws include the Code of Obligations and Contracts, the Penal Code, and specific legislation on vocational training, apprenticeships, data protection, and social security. Collective agreements play a limited role in regulating pay and conditions, while internal rules and individual employment contracts also shape employee rights.
This detailed guide addresses the key Morocco labor regulations on employee benefits and employer obligations to ensure compliance and avoid legal hurdles. Let’s get on to it.
Contractual Agreements
In Morocco, the employment agreement is concluded for a predetermined or indefinite period. You may outline the essential terms with a written agreement.
Along with the employment contract, you may sign a Data Processing Agreement to remain compliant with data privacy laws.
Types of employment contracts in Morocco
Obligations and rights for both parties
- You can make payments on the 25th of every month.
- You are responsible for employee health, safety, and dignity while respecting work hours and providing opportunities for training.
- You can direct work, issue disciplinary measures, and terminate under legal grounds, but you must always act in good faith.
- You must recognize the trade union membership rights.
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Working Hours and Overtime
The employment laws in Morocco outline your obligations while scheduling working hours, overtime, and rest periods. Here's what you need to know:
Regular working hours
- You may schedule a standard working week at 44 hours.
- You can spread it over the entire week with a maximum of 10 hours a day.
- Further, Morocco labor law requires you to extend a weekly rest period of continuous 24 hours.
Overtime regulations and compensation
You can learn more about managing compensation and benefits while hiring in Morocco.
Minimum Wage and Compensation
Here’s a breakdown of general practices followed under the labor law provisions involving minimum wage and compensation:
The minimum wage rate in 2024
Factors affecting wage determination
- Demand-side and supply-side factors usually determine wage levels.
- You must negotiate the salaries of full-time employees in Dirham (MAD).
Learn more about the effective ways to pay your remote employees.
Employee Benefits and Social Security
Here’s a quick summary of how you can comply with statutory benefits and social security obligations under the employment laws in Morocco:
Statutory benefits
- Morocco labor law requires you to contribute towards social schemes managed by the Caisse Nationale de Sécurité Sociale (CNSS) fund.
- Subsequently, you must enroll in a public health insurance scheme called Assurance Maladie Obligatoire (AMO).
- CNSS funds maternity leave, professional training, medical care, etc.
- The labor laws of Morocco also enforce an end-of-service obligation based on the length of employee service.
- In addition to extending the statutory leave entitlements (more on this later), you must allow up to 15 days of unused annual leave to carry forward in the following year.
Additional perks and benefits
- You may offer a productivity bonus or extend the 13th month’s pay to keep the employees motivated.
- You must pay severance upon termination, based on service duration and salary (more on this later).
Social security contributions and requirements
- Social security contributions are calculated based on gross salary and may vary according to monthly bonuses or commissions.
Vacations and Paid Time Off
You may extend the following paid and unpaid leave entitlements per the labor law in Morocco:
Annual leave entitlement
- You must extend at least 18 days of annual leave per year.
- Morocco labor law calculates annual leave at one and a half working days per month of service.
- You may offer paid leave entitlements to employees with more than six months of continuous service.
Public holidays and special leaves
Termination and Severance
The employment laws in Morocco call for the following employer obligations while terminating an employment contract:
Grounds for termination
- Termination due to poor performance: You can terminate the contract for unsatisfactory performance even after implementing a performance improvement plan. You may take similar action if an employee does not show up to work due to illness or absconding.
- Termination with the cause: You may initiate it for serious misconduct, including harming others, dishonesty, negligence, recklessness, repeatedly violating workplace rules, or imprisonment.
- Termination due to business redundancy: You can downsize the workforce for company restructuring or making technological advancements.
Notice period and severance pay
Discrimination and Equal Opportunity
The employment laws in Morocco encourage you to adopt anti-discrimination and anti-harassment policies in the workplace. You can partner with an Employer-of-Record to help you comply with the following requirements:
Prohibitions against workplace discrimination
- You must not discriminate between employees based on protected characteristics like gender, marital status, pregnancy, disability, nationality, or religious beliefs.
- You must steer clear of direct and indirect discrimination practices.
- You may not punish employees for reporting discrimination or harassment.
Health and Safety Regulations
The labor laws of Morocco require you to prioritize the health, safety, and dignity of your employees through the following measures:
- Identify and mitigate potential risks in the workplace.
- Enroll all your employees in mandatory public health insurance schemes.
- You also may offer private health insurance for more coverage and benefits.
- Provide a clean, well-ventilated, and comfortable work environment.
Further, you must establish health and safety committees to promote a safe work environment if you are employing more than 50 employees.
Stay Compliant with Skuad
While the employment laws in Morocco have not seen significant changes since 2003, updates are being debated, particularly around part-time work and dismissal procedures.
Fortunately, Skuad empowers you to build a diverse and successful team across 160+ countries (including Morocco) without local entities and compliance headaches. Skuad offers comprehensive international onboarding, payroll, taxes, and benefits administration from a unified platform.
Schedule a demo to explore tailored labor law compliance solutions at Skuad.
FAQs
Q1. What are the labor and employment laws in Morocco?
A1. The labor and employment laws in Morocco are primarily governed by the Labor Code (Law no. 65-99). It outlines key aspects like working hours, pay, leave, and health & safety. It applies to most private sector employees under an employment contract.
Q2. What are the different types of employment in Morocco?
A2. You will find both formal and informal employment options in Morocco. Most formal options require a written contract.
Q3. What is the notice period for employees in Morocco?
A3. Notice periods in Morocco vary based on employee tenure and the reason for termination. The statutory notice period varies between eight days to three months.
Q4. What is the employment contract in Morocco?
A4. The default option is the indefinite-term contract (CDI). Fixed-term contracts (CDDs) exist for temporary needs, while specific contracts like apprenticeships and internships cater to training and development.
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