Employer of Record in Morocco

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in another country. If you want to hire someone in Morocco, but you don’t have a registered business there, you can use an EOR. The EOR becomes the official employer for your Moroccan team members, handling all the legal and HR tasks that come with employment. This includes things like payroll, taxes, benefits, and making sure everything follows Moroccan labor laws. Using an EOR like Rivermate allows you to build a team in Morocco without the time and expense of setting up your own local company.

How an Employer of Record (EOR) Works in Morocco

Using an EOR in Morocco simplifies the process of hiring employees. Here is a step-by-step look at how it works:

• You Find the Talent: You recruit and select the person you want to hire in Morocco. You manage their day-to-day work and responsibilities.
• The EOR Hires Them: The EOR legally hires the employee through its local Moroccan entity. They create a compliant employment contract that meets all Moroccan labor regulations.
• Onboarding and HR: The EOR handles the onboarding process. They also manage all HR-related administrative tasks. This includes registering the employee with social security (CNSS) and tax authorities.
• Payroll and Benefits: The EOR processes payroll each month, making sure your employee is paid correctly and on time. They handle all tax withholdings and social security contributions as required by Moroccan law.
• Ongoing Compliance: The EOR stays up-to-date with any changes in Moroccan labor laws. This ensures that your employment relationship remains fully compliant, reducing your legal risks.

Why use an Employer of Record in Morocco

Using an EOR in Morocco can be a smart move for your business. It allows you to enter a new market and hire talented people quickly and safely. You can focus on your main business goals while the EOR takes care of the complex employment details.

Here are some of the key benefits:

• Avoid Setting Up a Legal Entity: You can hire employees in Morocco without going through the complicated and costly process of establishing a local company.
• Ensure Compliance: Moroccan labor laws can be complex. An EOR has the local expertise to make sure you are always in compliance with all legal requirements, from contracts to termination.
• Save Time and Money: Setting up a business in a new country takes a lot of time and financial investment. An EOR offers a faster and more cost-effective way to build your team.
• Access to Local Expertise: EORs have in-depth knowledge of the local market. They can provide valuable insights into local customs, salary benchmarks, and benefit expectations.
• Focus on Your Business: By letting an EOR handle HR and administrative tasks, you can concentrate on your core business operations and managing your team's success.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Morocco includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Morocco.

Hiring in Morocco means navigating a unique set of labor laws and cultural practices. It’s a market with a young, multilingual workforce, making it an attractive location for international companies. But, to succeed, you need to understand the local rules, from employment contracts to working hours. This guide cuts through the complexity to give you the essential information you need.

Employment contracts & must-have clauses

In Morocco, you can establish an employment relationship with a verbal or written agreement. However, we always recommend a written contract. It provides clarity and protection for both you and your employee. Written contracts are mandatory for fixed-term roles.

There are three main types of employment contracts in Morocco:

• Indefinite-Term Contract (CDI): This is the standard for permanent, ongoing roles.
• Fixed-Term Contract (CDD): You can use this for specific projects or temporary work. These contracts must be in writing.
• Specific Task Contract: This type of contract is for a particular project with a set duration.

Your employment contracts should always include these key clauses:

• Identification: Full legal names and addresses for both you and the employee.
• Job Details: A clear description of the role, responsibilities, and work location.
• Compensation: Details on the salary, payment frequency, and method.
• Working Hours: Whether the role is full-time or part-time, and any shift patterns.
• Leave Entitlements: An outline of annual leave, sick leave, and other time-off rights.
• Probationary Period: The duration and conditions for the trial period.
• Termination: Notice periods and severance obligations.

Probation periods

Probation periods in Morocco vary depending on the employee's role. It's a time for both you and the new hire to assess the fit.

Working hours & overtime

A standard work week in Morocco is 44 hours, with a maximum of 10 hours per day. Anything beyond 44 hours a week is considered overtime.

Here’s how you should compensate for overtime:

• Daytime (6 a.m. to 9 p.m.): 125% of the regular hourly rate.
• Nighttime (9 p.m. to 6 a.m.): 150% of the regular hourly rate.

Public & regional holidays

Morocco observes several national public holidays. These are important to note for scheduling and payroll.

Islamic holidays, such as Eid al-Fitr, Eid al-Adha, and Mawlid, are also observed. Their dates change each year based on the lunar calendar.

Hiring contractors in Morocco

You can hire independent contractors in Morocco for project-based or specialized work. This can be a flexible way to bring in talent without a long-term commitment. However, it's crucial to classify workers correctly.

Misclassifying an employee as a contractor can lead to serious risks. If a court determines that a contractor is actually an employee, you could face penalties, back payments for social security and taxes, and legal disputes.

An Employer of Record (EOR) can help you mitigate this risk. An EOR acts as the legal employer for your Moroccan team members. They handle contracts, payroll, benefits, and compliance with local labor laws. This allows you to hire contractors and full-time employees in Morocco without needing to set up a local entity, ensuring you stay compliant and avoid misclassification issues.

In Morocco, your payroll responsibilities are straightforward. You'll need to manage employee salaries, taxes, and social security contributions. The system is designed to ensure fairness and provide a safety net for your team. Staying compliant with these regulations is key to operating smoothly in the country.

Payroll cycles & wage structure

The payroll cycle in Morocco is typically monthly. You should pay your employees by the last working day of the month. While not required by law, a 13th-month bonus is a common practice and something you should consider to stay competitive.

When you create an employment contract, make sure it's in Arabic and uses the Moroccan dirham. The contract should clearly state the employee's wages, working hours, and other important details.

Overtime & minimums

The standard workweek in Morocco is 44 hours. Anything beyond that is overtime. Here’s how you calculate overtime pay:

• Daytime (6 am to 9 pm on weekdays): 25% extra pay.
• Nighttime (9 pm to 6 am): 50% extra pay.
• Weekends and holidays: Pay is between 150% and 200% of the regular salary.

Minimum wage varies by sector. As of September 2023, the minimum wage for the private sector is MAD 3,120.00 per month.

Employer taxes and contributions

As an employer, you contribute to several social security funds. These contributions are a percentage of your employee's gross salary.

Source: CloudPay, Workforce Africa

Employee taxes and deductions

Your employees also contribute to social security from their salaries. You are responsible for withholding these amounts and remitting them to the government.

Source: CloudPay, Workforce Africa

On top of social security, you must withhold income tax from your employees' pay. This is done on a "Pay As You Earn" basis, with rates from 0% to 38% depending on the employee's income.

In Morocco, providing the right benefits and leave is key to attracting and keeping great talent. It's not just about following the rules. It's about showing your team you value them. Understanding the mix of required and extra benefits helps you build a competitive package.

Statutory leave

Moroccan labor law sets minimum leave requirements for all employees.

• Annual Leave: After six months of work, you get 1.5 days of paid leave for every month you work. That adds up to 18 days a year. This increases by 1.5 days for every five years of service, up to a maximum of 30 days.
• Sick Leave: You are entitled to sick leave if you provide a medical certificate. Pay during sick leave is typically covered by social security at about two-thirds of your normal wage, starting from the fourth day of absence. To qualify, you must have contributed to social security for at least 54 days in the previous six months.
• Maternity Leave: Expecting mothers get 14 weeks of fully paid maternity leave. This is usually taken as seven weeks before the due date and seven weeks after. An additional unpaid leave of up to one year is also an option.
• Paternity Leave: New fathers are entitled to three days of paid leave.
• Other Leave: You may also be eligible for paid time off for significant life events. This can include up to four days for your marriage and three days for the death of an immediate family member.

Public holidays & regional holidays

Your team gets paid time off for national and religious holidays. If you have to work on a public holiday, you should receive a compensatory day off plus compensation.

Typical supplemental benefits

Beyond the legal minimums, many companies offer extra benefits to stay competitive.

How an EOR can help with setting up benefits

Navigating another country's employment laws is complex. An Employer of Record (EOR) makes it simple.

An EOR acts as the legal employer for your team in Morocco. We handle all the administrative tasks. This includes managing payroll, taxes, and social security contributions. We also ensure you provide the correct statutory leave and benefits from day one.

Using an EOR helps you:

• Stay compliant with Moroccan labor laws.
• Offer competitive benefits packages that attract top talent.
• Save time and resources on HR administration.
• Onboard new employees quickly and correctly.

We take care of the details so you can focus on growing your business.

Ending employment in Morocco involves a structured process. You must follow the country's labor laws to avoid disputes. Moroccan law allows for termination for several reasons, including resignation, mutual agreement, serious misconduct, or economic reasons. In each case, you need to follow specific procedures. This includes providing the correct notice period and calculating severance pay.

Notice periods

When you terminate an employee, you must provide a notice period. The length of this period depends on the employee's job category and how long they have worked for you.

For executives and similar roles:

• Less than 1 year of service: 1 month
• 1 to 5 years of service: 2 months
• More than 5 years of service: 3 months

For other employees:

• Less than 1 year of service: 8 days
• 1 to 5 years of service: 1 month
• More than 5 years of service: 2 months

You do not need to give notice in cases of serious misconduct.

Severance pay

Employees with indefinite contracts are usually entitled to severance pay. This is not required if the termination is due to serious misconduct. You calculate severance pay based on the employee's length of service and average salary.

The calculation works like this:

• First 5 years of service: 96 hours of wages for each year.
• 6 to 10 years of service: 144 hours of wages for each year.
• 11 to 15 years of service: 192 hours of wages for each year.
• Over 15 years of service: 240 hours of wages for each year.

For fixed-term contracts, severance pay is equal to the wages the employee would have earned for the rest of the contract period.

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We handle the entire process to ensure you stay compliant with Moroccan labor laws.

Here’s how we help:

• Ensure correct procedures: We make sure every step, from the initial notice to the final payment, follows the law.
• Calculate payments: We accurately calculate notice periods and severance pay based on the employee's role and tenure.
• Handle documentation: We manage all the necessary paperwork, including the termination letter and filings with the labor inspectorate.
• Reduce risk: Our expertise in Moroccan labor law helps you avoid the risks of wrongful dismissal claims.

Navigating visas and work permits in Morocco can seem complex, but we are here to make it simple for you. If you want to hire someone who is not a Moroccan citizen, they will need the right documents to work legally in the country. This applies to all non-citizens, no matter how long the job is for. The process involves both a work permit and a visa, and as the employer, you play a key role in getting these sorted out.

Employment visas & sponsorship realities

An Employer of Record (EOR) in Morocco can hire employees on your behalf. This means we can handle the sponsorship of work permits and visas for your international hires. We take on the legal responsibilities of an employer, which simplifies the process for you.

Here is what we can do:

• Sponsor work permits: We manage the application process for the necessary work authorizations.
• Handle visa applications: We guide your employees through the visa application and ensure all paperwork is correct.
• Ensure compliance: We make sure that all employment and immigration laws are followed, reducing risks for your business.

Using an EOR is a practical way to hire in Morocco without setting up your own local entity. We become the legal employer, making it possible to onboard talent quickly and compliantly.

Business travel compliance

For short-term business trips, the rules are different. Many nationalities, including citizens of the United States and the European Union, can enter Morocco without a visa for up to 90 days.

Keep these points in mind for business travel:

• Visa-free travel: Check if your employee's nationality allows for visa-free entry for short stays.
• 90-day limit: Business visits are typically limited to 90 days. It is important not to overstay this period.
• Business activities: Short stays are for activities like meetings, negotiations, or attending conferences.
• Short-Term Work Authorization: For hands-on work lasting up to three months, a new Short-Term Work Authorization is available. This is a faster option than a traditional work permit.

For any stay longer than 90 days, a long-term visa and residence permit are necessary. We can help you determine the right approach for your business needs and ensure your team stays compliant with Moroccan laws.