Global Expansion Guide

Morocco

Manage and pay your employees easily with BIPO in Morocco and 170+ other markets. Build your international teams today with our global Employer of Record service!

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Currency

Moroccan Dirham (MAD)

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Language

Arabic,

Berber

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Capital

Rabat

Employer of Record Morocco

Embark on your business expansion in Morocco with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Moroccan market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

Employment Contract

Types of Employment Contracts

  • Open-ended Employment Contract (Contrat à Durée Indéterminée – CDI)

    • The standard form of employment relationship, with no predetermined termination date.
  • Fixed-term Employment Contract (Contrat à Durée Déterminée – CDD)

    • A fixed-term contract may only be concluded for the following purposes: (i) to replace an absent employee (other than in cases of strike action); (ii) to respond to a temporary increase in business activity; or (iii) to perform seasonal work.
    • Non-agricultural sector: The maximum duration of a CDD is one (1) year, renewable once only.
    • Agricultural sector: The maximum duration of a CDD is six (6) months, renewable once only, provided that the total duration does not exceed two (2) years.
  • Specific-task Contract (Contrat pour un Travail Déterminé / Project-based Contract)

    • Moroccan labour legislation permits the conclusion of a contract with a freelancer or remote worker for the completion of a specific project, regardless of the project’s duration.

Essential Contents of the Employment Contract

  • Identification of Parties: The contract shall clearly state the full name, address, and identity information of both the employer and the employee.
  • Contract Type and Position: The contract shall specify the type of employment contract (CDI, CDD, or specific-task/project-based contract) and the employee’s job title/position.
  • Commencement and Termination Dates: The contract shall indicate the official start date of employment. For fixed-term contracts (CDD) and specific-task contracts, the contract shall also include the end date of employment or completion of the project.
  • Duties and Responsibilities: The contract shall clearly define the employee’s duties and tasks associated with the position.
  • Working Time: The contract shall specify the standard working week, including daily working hours and rest days, in compliance with the statutory maximum of 44 hours per week.
  • Remuneration and Benefits: The contract shall detail the basic salary, the frequency of payment, and any additional benefits provided, such as transport allowance, health insurance, or paid leave.
  • Termination and Dismissal: The contract shall list grounds for termination, in accordance with the Moroccan Labour Code concerning justified dismissal or appropriate redundancy procedures.
  • Dispute Resolution: The contract shall establish a procedure for resolving disputes arising during employment, which may include internal mediation or recourse to the competent labour courts.

Statutory Contributions

CategoryEmployer’s ContributionEmployee’s Contribution
Long-term Social Benefits (capped at 6,000 MAD)8.98%4.48%
Family Allowances6.40%
Vocational Training1.60%
Health Insurance4.11%2.26%
Unemployment Insurance (capped at 6,000 MAD)0.38%0.19%
TotalApprox. 21.47%6.93%

Minimum Wage

The statutory minimum wage in the Kingdom of Morocco varies by sector:

  • Private Sector Employees: The minimum wage shall be fixed at 17.10 MAD per hour.
  • Agricultural Sector Employees: The minimum wage shall be fixed at 93 MAD per day.

Public Holidays

Holiday Name Date
Independence Manifesto Day 11 January 2025
Amazigh New Year 14 January 2025
Eid al-Fitr 31 March 2025
Labour Day 1 May 2025
Eid al-Adha 7 June 2025
Islamic New Year 27 June 2025
Throne Day 30 July 2025
Oued Ed-Dahab Day 14 August 2025
Revolution Day 20 August 2025
Youth Day 21 August 2025
Prophet Muhammad’s Birthday 5 September 2025
Green March Day 6 November 2025
Independence Day 18 November 2025

Working Hours

Normal Working Hours

Pursuant to Article 184 of the Moroccan Labour Code, the maximum standard working time shall be forty-four (44) hours per week.

The statutory maximum duration of the working day shall not exceed ten (10) hours.

Rest Time

  • Weekly Rest: Every employee shall be entitled by law to a minimum of twenty-four (24) consecutive hours of weekly rest. Such rest shall ordinarily fall on Friday, Saturday, Sunday, or the local market day.
  • Daily Rest: No statutory minimum daily rest period is expressly provided; however, daily rest entitlements may be established by collective bargaining agreements or by the internal regulations of the employer.
  • Meal Breaks: While the Labour Code does not expressly regulate meal breaks, where the working schedule includes a meal period, employees shall be entitled to a rest break for meals. Employers are required to provide a designated meal area.

Overtime

Any hours worked in excess of eight (8) hours per day, forty-four (44) hours per week, or the annual limit under unequal distribution of working time arrangements, shall constitute overtime.

Where the nature of the work requires, an employer may require up to twenty (20) additional hours of overtime per employee, provided that total overtime does not exceed one hundred (100) hours per year per employee.

Overtime compensation shall be calculated as follows:

  • Daytime overtime: 25% premium on the basic wage.
  • Night-time overtime: 50% premium on the basic wage.
  • Work on rest days or public holidays: 50% premium for daytime work, 100% premium for night-time work, in addition to compensatory rest.

Overtime pay shall be included in the employee’s normal remuneration. Employers must maintain detailed records of overtime hours worked by each employee.

The calculation base for overtime shall include the basic wage and its supplements, but shall expressly exclude family allowances, tips (except where tips constitute the sole remuneration), and expense reimbursements related to work.

Probationary Period

Open-ended Employment Contract (Contrat à Durée Indéterminée – CDI)

  • Executives and managerial staff: up to three (3) months.
  • Ordinary employees: up to one and a half (1.5) months.
  • Workers: up to one (1) day.

The probationary period may be renewed once only.

Fixed-term Employment Contract (Contrat à Durée Déterminée – CDD)

  • For contracts of six (6) months or less: One (1) day per week of the contract term, not exceeding two (2) weeks in total.
  • For contracts of more than six (6) months: Up to one (1) month.

General Rules

The employment contract, collective agreements, or internal company regulations may stipulate a shorter probationary period than the statutory maximum.

Leave

Type Applicability Duration
Paid Annual Leave Employees with six (6) consecutive months of service with the same employer Employees are entitled to 1.5 days of vacation for every month of work. Employees under the age of 18 are entitled to 2 days of vacation for every month of work. An additional 1.5 days of vacation are granted for every five years of service, with a maximum total of 30 days.
Maternity and Pregnancy Leave Female employees 14 weeks; May be extended in case of illness or pregnancy-related complications upon medical certification.
Paternity Leave Male employees Father is entitled to 3 days of paid leave within the first month following the child’s birth.
Sick Leave All employees Employees must notify employers and provide medical certificates within 48 hours. For absences exceeding 4 days, the duration must be certified. Absence exceeding 180 consecutive days within 12 months (non-occupational) or permanent incapacity may be treated as constructive resignation.
Marriage Leave All employees Employee’s own marriage: 4 days; Child’s marriage: 2 days.
Bereavement Leave All employees Death of spouse, child, grandchild, parent/grandparent: 3 days; Death of spouse’s sibling or parent/grandparent: 2 days.
Care Leave All employees Spouse’s or dependent child’s surgery: 2 days; Circumcision leave: 2 days.
Other Leave All employees For examinations, national sports training, or official international/national competitions: leave granted as appropriate.

Termination and Compensation

Notice Period

Fixed-term Employment Contract (CDD): The notice period shall be no less than eight (8) days, except in cases of force majeure.

Open-ended Employment Contract (CDI):

  • Non-Managerial Employees

    • Less than 1 year of service: Eight (8) days
    • 1 to 5 years of service: One (1) month
    • More than 5 years of service: Two (2) months
  • Managerial Employees and Equivalent Positions

    • Less than 1 year of service: One (1) month
    • 1 to 5 years of service: Two (2) months
    • More than 5 years of service: Three (3) months

Exception to Standard Notice Period: Probationary Period

The probationary period constitutes an exception to the standard notice period. During this initial period, either party may terminate the contract without providing reasons or notice, subject to the provisions below:

  • Employer:

    After the first week of the probationary period, if the employer dismisses an employee without just cause, the employer shall provide notice as follows:

    • For employees paid daily, weekly, or biweekly: at least two (2) days’ notice;
    • For employees paid monthly: at least eight (8) days’ notice.
  • Employee:

    The employee may terminate the employment relationship at any time during the probationary period without prior notice.

Compensation

Any employee who has completed six (6) months of continuous service with the same employer shall be entitled to severance pay, regardless of the method or frequency of salary payment.

Severance Pay by Length of Service:

  • 5 years or less: 96 hours of wages per year of service
  • 6 to 10 years: 144 hours of wages per year of service
  • 11 to 15 years: 192 hours of wages per year of service
  • More than 15 years: 240 hours of wages per year of service

Additional Considerations of Severance Pay:

  • Severance pay is generally payable upon the employee’s departure from the company.
  • Collective agreements may provide for more generous severance benefits than the statutory minimum.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Moroccan regulations.
  • Contributions and Taxes: Our expertise in managing local social statutory contributions and local income tax ensures your business complies with Morocco’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Morocco’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Morocco’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.
Services may vary across countries.

Benefits of BIPO Employer of Record Service in Morocco

Unlock your growth potential with BIPO’s Employer of Record service in Morocco. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

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Frequently Asked Questions (FAQ)

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees.

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from:

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

Find out more?

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