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Morocco

Termination and Severance Policies

Learn about the legal processes for employee termination and severance in Morocco

Notice period

In Morocco, the notice period during employment termination is regulated by the Moroccan Labor Code. The duration of the notice period is determined by the length of service of the employee.

Notice Periods Based on Length of Service

For employees who have served:

  • Less than one year: The notice period is one month.
  • Two to nine years: The notice period is two months.
  • More than nine years: The notice period is three months.

These notice periods are applicable to both terminations initiated by the employer and resignations by the employee, barring exceptional circumstances.

Notice Period During Probation

The probationary period is an exception to the standard notice periods. During this initial period, either party can terminate the contract without providing a reason or notice, with the following exceptions:

  • Employer: After the first week of probation, if the employer terminates without just cause, they must provide notice (minimum two days for daily/weekly/bi-weekly pay, eight days for monthly pay).
  • Employee: The employee can always terminate without notice.

Immediate Termination for Cause

In cases of severe breaches of contract or misconduct, both employers and employees can terminate the employment contract immediately without a notice period.

It's important to note that when terminating for cause, it's crucial to follow proper procedures outlined in the Labor Code to avoid legal disputes. This may involve written warnings, disciplinary hearings, and documented justification.

Consulting with a Moroccan labor lawyer is recommended to ensure compliance with notice period requirements and proper termination procedures, especially for complex situations.

Severance pay

In Morocco, employees are entitled to severance pay under certain circumstances when their employment is terminated. This is according to the Moroccan Labor Code.

Eligibility for Severance Pay

Moroccan employees generally qualify for severance pay in the following situations:

  • Dismissal by the Employer (except for gross misconduct): Employees who are dismissed by their employer, except for cases of gross misconduct, are entitled to severance pay.
  • Retirement: Employees who retire after a specific period of service may be entitled to severance pay.
  • Certain Mutual Agreements: In some cases, if the employer and employee mutually agree to terminate the contract, the employee may be eligible for severance pay.

How Severance Pay is Calculated

The calculation of severance pay in Morocco is based on the employee's length of service and their average salary:

  • Length of Service:
    • 5 years or less: 96 hours of pay per year of service
    • 5-10 years: 144 hours of pay per year of service
    • 10-15 years: 192 hours of pay per year of service
    • 15 years or more: 240 hours of pay per year of service
  • Average Salary: The average salary is usually calculated based on the last 52 weeks of employment.

Additional Considerations

  • Severance pay is generally due upon the employee's separation from the company.
  • Provisions in collective bargaining agreements may provide for more generous severance entitlements.

Termination process

In Morocco, the termination process is governed by the Moroccan Labor Code. It is essential to follow these procedures to ensure a lawful termination.

Types of Termination

There are several types of termination:

  • Resignation: This is when employees decide to leave their job voluntarily.
  • Dismissal with Notice: This is when employers decide to terminate an employee's contract, providing a written notice with a reason.
  • Dismissal for Gross Misconduct: This is an immediate termination without notice due to severe misconduct such as violence, theft, or serious insubordination.

Dismissal Procedures

When an employer decides to dismiss an employee, they must follow specific steps:

  1. Prior Notice and Conciliation: In most cases, the employer must first notify the labor inspector and attempt to resolve the issue amicably with the employee.
  2. Written Notice of Dismissal: If conciliation fails, the employer must provide a written notice of dismissal stating the reason for termination.
  3. Employee Response: The employee has the right to submit a written response to the dismissal notice and present evidence.
  4. Final Decision: The employer makes the final decision on whether to proceed with the dismissal.

Dismissal for Gross Misconduct

Immediate dismissal for serious misconduct is possible; however, the employer must adhere to these key points:

  • Specific Grounds: The Moroccan Labor Code outlines specific acts considered gross misconduct.
  • Documentation: Thorough documentation of the misconduct is crucial.
  • Opportunity to Respond: The employee should generally be given the chance to explain themselves.

Appeal Rights

Employees who believe they have been unfairly dismissed have the right to challenge the decision in court. It's strongly recommended that both employers and employees consult with Moroccan legal experts to navigate the complexities of the termination process and ensure all procedures are followed correctly.

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