Navigating employment termination in Morocco requires careful adherence to the country's labor code. Both employers and employees have specific rights and obligations that must be respected throughout the process. Understanding the legal framework is crucial to ensure compliance and avoid potential disputes.
The termination process involves several key stages, including providing appropriate notice, calculating and paying severance, establishing valid grounds for dismissal, and following strict procedural steps. Failure to comply with these requirements can lead to significant legal and financial consequences for the employer.
Notice Period Requirements
The required notice period for terminating an employment contract in Morocco depends on the employee's category and length of service. The labor code establishes minimum notice periods, which can be extended by collective agreements, internal regulations, or the individual employment contract, provided they are more favorable to the employee.
Minimum notice periods are typically categorized based on whether the employee is considered a "cadre" (managerial/supervisory) or "non-cadre" (other employees).
| Employee Category | Length of Service | Minimum Notice Period |
|---|---|---|
| Non-Cadre | Less than 1 year | 8 days |
| Non-Cadre | 1 to 5 years | 1 month |
| Non-Cadre | More than 5 years | 2 months |
| Cadre | Less than 1 year | 1 month |
| Cadre | 1 to 5 years | 2 months |
| Cadre | More than 5 years | 3 months |
During the notice period, the employee is generally entitled to two hours of paid time off per day, or a total of eight hours per week, to seek new employment. This time off can be taken all at once or distributed throughout the week, depending on agreement or custom.
Severance Pay
Employees in Morocco are generally entitled to severance pay upon termination of an indefinite-term contract, unless the termination is due to serious misconduct on their part or is a result of force majeure. Severance pay is calculated based on the employee's length of service and their average salary over the last 52 weeks preceding the termination.
The calculation is progressive, meaning the amount per year of service increases with tenure. The minimum rates are:
- 96 hours of wages for each year of service for the first 5 years.
- 144 hours of wages for each year of service for the next 5 years (from 6 to 10 years).
- 192 hours of wages for each year of service for the next 5 years (from 11 to 15 years).
- 240 hours of wages for each year of service for years exceeding 15 years.
For calculating severance, any fraction of a year is considered a full year. The "wage" used for calculation includes the basic salary plus any benefits and allowances that are not reimbursements for expenses.
Grounds for Termination
Termination of an indefinite-term contract in Morocco can occur for various reasons, broadly categorized as termination with cause and termination without cause.
Termination with Cause
Termination with cause typically refers to dismissal based on the employee's serious misconduct. The labor code lists examples of serious misconduct, including:
- Serious fault causing material damage to the employer's property.
- Disclosure of professional secrets causing prejudice to the company.
- Refusal to perform a task within the scope of the contract, except where the task is contrary to law or public order.
- Absence without justification for more than four days or eight half-days within a twelve-month period.
- Assault or battery committed during work against the employer, a colleague, or a third party.
- Serious negligence endangering the safety of personnel or the workplace.
- Drunkenness during working hours.
- Use of narcotic drugs.
- Theft or abuse of trust within the company.
This list is not exhaustive, and courts may consider other actions as serious misconduct depending on the circumstances.
Termination Without Cause
Termination without cause generally refers to dismissals based on economic, technological, or structural reasons. These reasons must be genuine and justified by the company's situation. This type of termination often involves collective dismissal procedures if it affects multiple employees.
Other grounds for termination can include mutual agreement between the parties or the employee's resignation.
Procedural Requirements for Lawful Termination
To ensure a termination is lawful, employers must follow specific procedural steps, particularly in cases of termination for serious misconduct or economic reasons.
- Notification of Misconduct (if applicable): For termination based on serious misconduct, the employer must notify the employee in writing of the alleged misconduct within 48 hours of becoming aware of it.
- Hearing: The employer must provide the employee with an opportunity to be heard and present their defense, typically within a period not exceeding eight days after the notification of misconduct. The employee can be accompanied by a representative of their choice from within the company. A record of this hearing should be kept.
- Notification of Termination: The decision to terminate must be communicated to the employee in writing via registered letter with acknowledgment of receipt or hand-delivered against a receipt. The termination letter must clearly state the reasons for dismissal and the effective date.
- Filing with Labor Inspectorate: A copy of the termination letter must be sent to the labor inspectorate. For terminations based on economic, technological, or structural reasons, specific procedures involving consultation with employee representatives and authorization from the provincial governor may be required before the termination can take effect.
- Issuance of Documents: Upon termination, the employer must provide the employee with a work certificate (certificat de travail) detailing the period of employment and the positions held, and the final pay slip including all final payments like outstanding wages, accrued leave pay, and severance pay (if applicable).
Common pitfalls include failing to provide written notification, not allowing the employee a hearing, incorrectly stating the grounds for dismissal, or failing to comply with collective dismissal procedures.
Employee Protections and Wrongful Dismissal
Moroccan labor law provides significant protections against wrongful dismissal. A dismissal is considered wrongful if it is not based on a valid ground recognized by law or if the correct legal procedures are not followed.
If an employee believes they have been wrongfully dismissed, they can challenge the termination before the labor court. The burden of proof typically lies with the employer to demonstrate that the dismissal was for a valid reason and that the correct procedures were followed.
If the court finds the dismissal to be wrongful, the employer may be ordered to pay damages to the employee. The amount of damages is determined by the court, taking into account factors such as the employee's length of service, age, salary, and the circumstances of the dismissal. In addition to severance pay (if already received or due), the court can award damages for the lack of notice period and damages for wrongful dismissal itself. The damages for wrongful dismissal are often calculated based on a certain number of days of salary per year of service, in addition to the statutory severance.
Understanding and strictly adhering to these regulations is essential for employers operating in Morocco to ensure fair and legally compliant termination processes.
