Establishing compliant employment relationships in Morocco requires a thorough understanding of the local labor code and the specific requirements for employment agreements. A well-drafted contract is crucial for defining the terms and conditions of employment, protecting both the employer and the employee, and ensuring adherence to Moroccan legal standards. Navigating these requirements is essential for companies operating or expanding into the Moroccan market.
Employment agreements in Morocco are governed primarily by Law No. 65-99, the Labor Code. This legislation sets out the framework for various aspects of the employment relationship, including contract types, mandatory clauses, working hours, leave, termination procedures, and more. Ensuring your employment contracts align with this code is a fundamental step in compliant hiring.
Types of Employment Agreements
Moroccan labor law recognizes two primary types of employment contracts: the Indefinite Term Contract (CDI) and the Fixed-Term Contract (CDD). The CDI is the standard form of employment contract, offering stability and requiring specific grounds for termination. The CDD is an exception and can only be used in specific, legally defined circumstances.
| Contract Type | Abbreviation | Description | Permissible Use Cases | Duration Limits |
|---|---|---|---|---|
| Indefinite Term Contract | CDI | The standard, stable form of employment. Presumed unless a CDD is explicitly agreed upon and legally valid. | For permanent positions and ongoing operational needs. | No fixed duration. Continues until terminated according to legal procedures. |
| Fixed-Term Contract | CDD | Used for specific, temporary needs. Must be in writing and state the reason for its fixed term. | Replacement of an absent employee, temporary increase in activity, seasonal work, launching a new activity (limited time), specific projects. | Generally limited to one year, renewable once. For specific sectors (e.g., agriculture, construction), different rules may apply. Cannot be used for permanent positions. |
A CDD can be converted into a CDI if it exceeds the maximum duration or if the employment continues after the CDD expires without a new agreement.
Essential Clauses
Moroccan labor law mandates the inclusion of certain key elements in any employment contract to ensure clarity and compliance. While not all contracts must be in writing (a CDI can be verbal, though written is highly recommended for clarity and proof), a CDD must be in writing. Regardless of format, certain terms are considered fundamental.
Key elements typically included in a written employment contract:
- Identification of Parties: Full names and addresses of both the employer and the employee.
- Date of Commencement: The start date of the employment relationship.
- Nature of Employment: Specification of whether the contract is CDI or CDD. If CDD, the specific reason and duration must be stated.
- Job Title and Description: A clear definition of the employee's role, responsibilities, and duties.
- Place of Work: The primary location where the employee will perform their duties.
- Remuneration: Details of the salary (gross amount), payment frequency (usually monthly), and any benefits or allowances.
- Working Hours: Specification of the standard daily or weekly working hours, in compliance with legal limits.
- Paid Leave: Reference to the employee's entitlement to annual paid leave as per the Labor Code.
- Probationary Period: If applicable, the duration and conditions of the probationary period.
- Reference to Labor Code: A statement that the employment relationship is governed by the Moroccan Labor Code.
Probationary Period
A probationary period allows both the employer and the employee to assess the suitability of the employment relationship. It must be explicitly agreed upon, preferably in writing. The maximum duration of the probationary period is set by law and varies depending on the contract type and employee category.
Maximum Probationary Periods:
- CDI (Executives and Similar): Up to 3 months, renewable once.
- CDI (Employees): Up to 1.5 months (45 days), renewable once.
- CDI (Laborers): Up to 15 days, renewable once.
- CDD: Cannot exceed two weeks if the contract duration is less than six months. If the contract duration is six months or more, the probationary period cannot exceed one month.
During the probationary period, either party can terminate the contract with relatively short notice, without needing to provide a specific reason or pay severance, provided the termination occurs within the legal limits of the probation. Notice periods during probation are typically shorter than for termination after probation.
Confidentiality and Non-Compete Clauses
Confidentiality and non-compete clauses are common in employment contracts, particularly for roles involving sensitive information or specialized skills.
- Confidentiality Clauses: These are generally enforceable in Morocco. They require the employee to keep confidential information learned during their employment secret, both during and after the employment relationship. The scope of confidential information should be clearly defined.
- Non-Compete Clauses: These clauses restrict an employee from working for a competitor or starting a competing business after leaving the company. For a non-compete clause to be enforceable in Morocco, it must meet several conditions:
- It must be in writing.
- It must be limited in scope (specific activities).
- It must be limited geographically.
- It must be limited in duration (typically reasonable, often 1-2 years).
- Crucially, it must provide financial compensation to the employee for the duration of the restriction. Without adequate compensation, the clause is unlikely to be upheld by Moroccan courts.
The enforceability of these clauses is subject to judicial review, and courts will assess their reasonableness and compliance with the conditions, particularly the compensation requirement for non-compete clauses.
Contract Modification and Termination
Modification of an employment contract generally requires the mutual written agreement of both the employer and the employee. Unilateral changes to essential terms (like salary, job duties, or location) by the employer can be considered a constructive dismissal by the employee, potentially leading to legal action.
Termination of an employment contract in Morocco is strictly regulated by the Labor Code.
- Termination of CDI:
- Resignation: Employee initiates termination with notice.
- Dismissal for Serious Misconduct: Employer terminates the contract immediately without notice or severance, but must follow a strict disciplinary procedure (including hearing the employee) and prove serious misconduct.
- Dismissal for Legitimate and Sufficient Reason (Non-Misconduct): Employer terminates the contract with notice and severance pay. Reasons can include economic grounds, technological changes, or restructuring, requiring specific legal procedures and potential administrative authorization.
- Mutual Agreement: Both parties agree in writing to terminate the contract.
- Force Majeure: Termination due to unforeseen, irresistible events making performance impossible.
- Termination of CDD:
- Expiry of Term: The contract automatically ends on the agreed-upon date.
- Mutual Agreement: Both parties agree in writing to terminate early.
- Serious Misconduct: Either party can terminate early for serious misconduct by the other party, following the same procedures as for CDI.
- Force Majeure: Similar to CDI.
In cases of dismissal (except for serious misconduct), the employer must provide a notice period, the duration of which depends on the employee's seniority and category. Severance pay is also mandatory for CDI employees dismissed after a certain period of service, calculated based on seniority. Specific procedures, including written notification and potential involvement of labor inspectors, must be followed for lawful termination.
