Morocco Employment Guide

Morocco, located in North Africa with a population of around 37 million, has a diverse economy based on agriculture, mining, manufacturing, and tourism. The labor market is regulated under the Moroccan Labor Code, which governs working hours, minimum wages, annual leave, and employee protections. Social security contributions are mandatory, covering pensions, healthcare, and family benefits. Collective agreements are common in larger companies. Employers must comply with employment contracts, termination rules, and occupational safety requirements. Morocco presents opportunities for both local and foreign professionals in a developing but increasingly modernized labor market.

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Currency

Moroccan Dirham (MAD)

Capital

Rabat

Official language

Arabic (Berber also recognized)

Salary Cycle

Monthly

Our Employment Guide in Morocco

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Navigating Employment Termination in Morocco: A Comprehensive Guide

Terminating employment relationships in Morocco requires careful adherence to complex legal frameworks and country-specific regulations. The separation process must be managed collaboratively between employers and key stakeholders, often involving special considerations and mandatory procedures depending on the termination circumstances.

Legal Grounds for Employment Termination

Moroccan labor law recognizes several legitimate pathways for employment separation:

Voluntary resignation by the employee
Mutual agreement between both parties
Employer-initiated termination based on:
- Probationary period assessment
- Behavior compromising honor, trust, or ethical standards
- Confidential information breaches causing material damage
Contract expiration

Notice Period Requirements

Notice periods vary significantly based on employee classification and tenure:

Employee Category	Less than 1 year	1-5 years	Over 5 years
Managerial Staff	1 month	2 months	3 months
Non-Managerial Staff	8 days	1 month	2 months

Severance Pay Obligations

Moroccan law mandates severance compensation for employees terminated through unfair dismissal. For instance, a recent case involving a manufacturing company demonstrated how proper severance calculation prevented costly litigation.

SailGlobal's approach incorporates severance accruals into all employment agreements, leveraging extensive expertise in global litigation risk management. Their calculation methodology combines statutory requirements with local best practices. Unused accruals are refunded when employees resign or aren't entitled to severance.

Practical Considerations for International Employers

Companies expanding into Morocco should consider implementing standardized termination protocols. A technology firm recently avoided potential disputes by establishing clear documentation procedures for performance-related separations.

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