Morocco Labor Law and Employment Policy Overview

Employment Law Overview

• Key Legislation:
  • Labor Code (Dahir No. 65-99 of 2003)
  • Social Security Law (Dahir No. 1-72 of 1972)
• Legal Characteristics:
  • Aims to protect employee rights and promote fairness and harmony in the workplace.
  • Regulates matters such as minimum wage, working hours, holidays, and social security benefits.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts (maximum 12 months, renewable once)
  • Indefinite-term contracts
  • Completion of work contracts
• Contractual Provisions:
  • Must include details such as job description, remuneration, working hours, probation period, and termination conditions.
• Language and Currency:
  • Contracts must be in Arabic and denominated in Moroccan Dirham.

Working Time Regulations

• Standard Working Hours: 44 hours per week, with a maximum of 10 hours per day.
• Rest Days and Breaks: At least one rest day per week, with a 1-hour break after each period of work.

Leave Policy

• Annual Leave: 1.5 days of paid annual leave for each month of service.
• Public Holidays: 16 statutory public holidays.
• Special Leaves:
  • Sick Leave: Paid sick leave from the fourth day of illness, at 66% of base salary.
  • Maternity Leave: 14 weeks of fully paid maternity leave, including 7 weeks before and 7 weeks after childbirth.
  • Paternity Leave: Fathers are entitled to 3 days of paid paternity leave within the first month after the birth of their child.

Employee Dismissal and Contract Termination

• Notice Period:
  • Fixed-term contracts: 1 month before expiration
  • Indefinite-term contracts:
    • Less than 1 year of service: 8 days
    • 1-5 years of service: 1 month
    • 5+ years of service: 2 months
• Severance Pay:
  • Employers must pay severance compensation after 6 months of service, calculated at 96 hours of salary for each year of service.
• Protection Against Unfair Dismissal: Employees are protected against dismissal based on discrimination, union activities, or reporting illegal conduct.

Taxation

• Personal Income Tax:

  • Salary Range (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%
    180,000+	38%

• Social Security Contributions:

  • Employee: 6.29% of salary
  • Employer: 20.1% of salary

Health Insurance

• Insurance Policy: Universal health coverage.
• Coverage: Basic healthcare services.

Compensation and Benefits

• Minimum Wage: Varies by sector.
• Salary Structure: Typically includes base salary, bonuses, and allowances.

Work Permits and Visas

• Permit Requirement: Foreigners require a work permit.
• Application Process: Apply through Moroccan embassies or consulates abroad.

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and not unduly restrict an employee's career development.
• Common Provisions: Prohibiting disclosure of confidential information and working for competitors for a specified period.

Training and Development

• Legal Requirements: None.
• Government Support: Government provides training programs and funding.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, religion, gender, or disability.
• Enforcement: National Human Rights Council responsible for enforcing anti-discrimination laws.

Remote Work Policy

• Legal Framework: No specific legal framework.
• Tax and Insurance Implications: Remote work may impact tax and social security obligations.

Authoritative Website Addresses

• Moroccan Ministry of Labor: https://www.emploi.gov.ma/