Labour Issues are governed by Law n° 65-99 promulgated by dahir 1-03-194 of 11 September 2003 (hereafter, “Moroccan Labour Code” or “MLC”) as well as its various application decrees.
Article 9 of the Moroccan Labour Code prohibits discrimination based on race, colour, gender, handicap, marital situation, religion, political opinion, union participation, national origin, social origin for any employment matters notably hiring, distribution of work, training, salary, promotion, granting of benefits, disciplinary measures and termination.
The Moroccan Labour Code allows for the conclusion of three types of contracts: an undetermined period contract, a determined period contract or a contract for a determined scope of work.
It is important to note that temporary contracts no longer exist under Moroccan Law and determined period contracts may only be concluded in the following cases:
Ø Replacement of one employee with another in case the employee’s contract is suspended
Ø If the company is facing a temporary increase in its activity
Ø If the work is of a seasonal nature
The determined period contract can also be concluded at the time of the initial opening of the company or the opening of a new department in the company or at the introduction of a new product in the market. In these cases the duration of the contract is one year renewable one time after which the contract becomes an undetermined period contract.
In case none of the above applies, then the contract must be concluded for an undetermined period.
Concerning the legal form of the contract, you may note that while a written contract is not required, if a written contract is concluded then it must be made in two original copies signed and legalized by both the employee and the employer.
Also, in the absence of a written work contract, the employee is treated as having an undetermined period contract.
Article 19 of the MLC states that in case of a change in the legal structure of the company (merger, sale, privatisation…) all contracts remain valid between the employee and the new employer.
The contract should establish a trial period which is the period during which each party can voluntarily terminate the contract at any time without giving notice or paying an indemnity. After one week of service, however, either party must give at least an 8 days notice. For an undetermined period contract, the legally prescribed trial periods are as follows:
Ø 3 months for management staff;
Ø 1,5 months for employees; and
Ø 15 days for workers
The trial period can be renewed one time.
For determined period contracts, the trial period must not exceed one day per week worked with a cap of 2 weeks for contracts with a duration of less than 6 months. The trial period must not exceed 1 month for contracts with a duration greater than 6 months.
If, after the expiration of the trial period, the employee is dismissed without having committed a serious offence, the notice period must not be less than those prescribed by law, as follows:
< service =" 1" style="mso-spacerun:yes">
1- 5 years of Service = 2 months
> 5 years of Service = 3 months
< service =" 8" style="mso-spacerun:yes">
1- 5 years of Service = 1 month
> 5 years of Service = 2 months
As for determined period contracts, in case of termination of contract prior to the end of the contract period for reasons other than serious offence, the damages to be paid are equal to the remainder of the salary to be paid through the end of the contract period.
B.i. Hiring Foreigners
Foreigners may be hired in the same manner as local recruits, with the exception that they are required to have their labour contract approved by the Ministry of Employment. Recent practice has changed such that employers are now required to justify the hiring of a foreigner rather than a local individual.
All foreigners residing in
B.ii Hiring Women and Children
The age of majority in
Likewise, women may only work at night if their health and social situation permit them to do so. Companies may be required to put special conditions in place to accommodate women working at night (i.e. nightime transportation).
You may note that certain types of work are not allowed to be performed by women, children and disabled individuals such as quarry work, subterranean work, and hazardous work and, for children and disabled, work that will stunt growth or exacerbate a disability.
C. Work Hours
The standard work hours are 44 hours per week or 2288 hours per year. These hours may be divided by the company according to business needs provided that the work day does not exceed 10 hours. Also, all employees must be given a weekly day of rest of at least 24 hours which, except under specific situations, must be granted on Friday, Saturday, or Sunday (or the day the market is open.)
Overtime is paid for any hours worked in excess of the standard work week. It is paid as a 25% premium increase if the extra hours are worked between 6 am and 9 pm. A 50% premium is applied if this overtime occurs on the weekly day off (even if another day off is given as compensation).
If the hours occur between 9 pm and 6 am a 50% premium is applied. A 100% premium is applied if the overtime occurs on the weekly day off (even if another day off is given as compensation)
All employees must be paid at least the minimum wage which is 10,64 dirhams per hour effective July 1, 2009.
Furthermore, employees are eligible for service premiums added to their salaries according to the following schedule:
Ø 5% of the salary after 2 years of service
Ø 10% of the salary after 5 years of service
Ø 15% of the salary after 12 years of service
Ø 20% of the salary after 20 years of service
Ø 25% of the salary after 25 years of service
E.i. Annual Leave
An employee is entitled to a vacation after continuous service in a company for at least 6 months.
The vacation is calculated based on 1,5 days for every month worked, (i.e. 18 days a year as a start). An employee is allowed an additional 1,5 days for every 5 years of service up to a maximum of 30 business days.
E.ii. Sick Leave
In case an employee is absent for medical reasons (other than for a work-related illness or injury) for more than 180 consecutive days in a 365 day period, his employer can assume he has resigned.
In general, employers may not cause their employees to work on a public paid holiday. However, based on the type of business, there are some exceptions to this.
As per decree, the holidays are as follows:
Ø January 11 (Manifestation de l'Indépendence)
Ø May 1 (Jour du Travail)
Ø July 30 (Fête du Trône)
Ø August 14 (Oued Eddahab)
Ø August 20 (Révolution du Roi et du Peuple)
Ø August 21 (Fête de la Jeunesse)
Ø November 6 (Fête de
Ø November 18 (Fête de l'indépendence)
Ø Aid el Ftr
Ø Aid El Adha
Ø 1er Moharrem
Ø Aid El Maoulid Annabaoui.
F. Safety and Hygiene
· a president, either the employer or its representative,
· the head of the safety department or if not available, an engineer or technical manager working in and designated by the employer
· the labour doctor
· two employee delegates elected by the employee delegates
· one or two union representatives, if applicable.
· to detect professional risks to which employees are exposed
· to ensure compliance with safety and hygiene regulations and legislation
· to ensure that the employees correctly use and maintain the personal protection devices
· to ensure awareness of environmental protection inside and around the company locations
Ø Pre-employment medical exams, preventing any employee health problems by controlling hygiene conditions, and monitoring the risks of contamination
Ø Providing medical care in the case of an emergency, work accident or illness
Ø Advising on hygienic conditions, protection of employees from work-related accidents, amelioration of work conditions
Ø prior to hiring, or at least prior to the end of the trial period
Ø for employees over 18 years old once per year
Ø for employees under 18 years of age, once every 6 months
Ø for employees exposed to any danger, pregnant women, etc
Ø after a period of absence resulting from a work-related accident or illness
· Specific provisions relative to the work organization, disciplinary measures, and the protection of the health and safety of employees
· The provisions relative to the organization of the adaptation of handicapped employees following a work-related accident or illness
H. Employee Delegates
I. Employee Governance Committee (Comité d’entreprise)
The committee is responsible for:
· Structural and technological transformations to be carried out by the company
· The social balance sheet
· The production strategy of the company and the ways to increase profitability
· The development and implementation of employee relations projects for the benefit of employees.
· Apprenticeship programs on-the-job training (formation-insertion), programs designed to fight illiteracy and continuing education for employees
This committee meets once every 6 months and when it is deemed necessary.
J. Other Issues