Moroccan labor law is primarily codified by Law No. 65-99 of September 11, 2003, better known as the Labor Code. This fundamental text sets out the obligations of employers and the rights of employees. Here are the key points every employer in Morocco should know:
Employment Contracts
The permanent employment contract (CDI - Contrat à Durée Indéterminée) is the standard in Moroccan law. The use of fixed-term contracts (CDD - Contrat à Durée Déterminée) is exceptional and its duration is generally limited to one year, renewable once. Beyond this period, a CDD can be reclassified as a CDI. Although a written contract is not always mandatory (proof of the employment relationship can be provided by any means), it is highly recommended to secure the contractual relationship. Article 18 of the Labor Code also specifies that a written employment contract is exempt from stamp duty. The trial period is legally capped: 15 days for blue-collar workers, 1.5 months for white-collar employees, and 3 months for managers, renewable once. It is crucial to clearly state essential elements in the contract, such as salary, duties, working hours, notice period, etc.
Recruitment and Foreign Workers
Any employer wishing to hire a non-resident worker must obtain a work permit (or work visa) from the Labor Inspectorate, in accordance with Articles 32 et seq. of the Labor Code. The employment of children under 15 is strictly prohibited. Furthermore, minors under 18 cannot be assigned to hazardous work. Employers are obliged to declare all employees, whether permanent or seasonal, to the National Social Security Fund (CNSS) and to issue a detailed payslip showing legal deductions (CNSS contributions, income tax).
Working Hours and Rest Periods
In the non-agricultural sector, the legal working week is set at 44 hours, or 2,288 hours per year. Hours worked beyond this legal limit are subject to overtime pay. The daily working time cannot exceed 10 hours. A mandatory weekly rest period of at least 24 consecutive hours must be granted to employees, usually on Saturday or Sunday.
Leave and Absences
Every employee is entitled to paid annual leave of at least 18 working days per year, equivalent to 1.5 working days per month of effective work. This leave entitlement increases with the employee's seniority in the company. The Labor Code also provides for 14 weeks of maternity leave and, more recently, 3 days of paternity leave. The employer is responsible for organizing leave periods and declaring them to the relevant social security bodies.
Remuneration
The salary paid to an employee cannot be less than the Guaranteed Minimum Interprofessional Wage (SMIG). In 2023, the SMIG was approximately 3,000 MAD per month in the private sector (excluding agriculture, where the SMAG - Guaranteed Minimum Agricultural Wage - applies). Employers must pay wages monthly and provide a compliant payslip. Failure to comply with the SMIG is punishable by fines (300 to 500 MAD per employee concerned, with a cap).
Social Security Contributions
Employers are liable for social security contributions to the CNSS, covering various risks such as illness, retirement, and family allowances. They also contribute to the Compulsory Health Insurance (AMO) scheme. The CNSS manages social protection for private-sector employees covering risks of illness, maternity, disability, old age, and death. Contributions are shared between the employer and the employee. It is imperative to declare the company's workforce to the CNSS within one month of the first hire.
Employee Representation and Collective Agreements
Moroccan law provides for the election of employee delegates in companies with at least 10 employees. The creation of a works council becomes mandatory from 50 employees. Employees have the right to join unions and bargain collectively, with freedom of association enshrined in Article 9 of the Labor Code. This same code encourages annual collective bargaining (Articles 92 et seq.). Collective agreements, whether at branch or company level, are common in certain sectors.
Recommended Practices for Employers
It is highly advisable to keep mandatory social registers up to date (personnel register, assembly records, HR decisions). Strict adherence to dismissal procedures (written notification, legitimate grounds) and disciplinary sanctions (establishment of a disciplinary council if provided for by internal regulations or a collective agreement) is essential. A prior written warning procedure is often good practice before considering dismissal. Finally, displaying legal information (list of employee delegates, internal regulations, CNSS information) is an obligation.
For a comprehensive understanding of the legal landscape for businesses in Morocco, refer to our pillar article: Legal Framework for Doing Business in Morocco: An Investor's Guide.