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Employment contracts in Morocco

Hiring in Morocco requires a firm grasp of how employment contracts are structured and regulated. While the Moroccan Labour Code allows for some flexibility, there are still clear expectations around contract types, content, and compliance practices that employers should be aware of.

The most common form of agreement is the standard employment contract in Morocco, typically used for open-ended (indefinite-term) roles. These do not legally require a written format, but a written contract is highly recommended to avoid disputes and ensure clarity on job duties, pay, working hours, and notice periods. Fixed-term contracts, on the other hand, must be in writing and are generally reserved for specific tasks like project-based or seasonal work. If these contracts are extended beyond one year without a break or renewal agreement, they are often treated as indefinite by default.

Probationary periods are permitted and vary by job role—up to three months for managerial positions. Internal work regulations are mandatory for companies with more than 10 employees and must be approved by a labour inspector. These rules should outline key policies on conduct, scheduling, leave, and disciplinary actions.

Employers are also required to issue labour cards, which document the worker’s role, wage, and start date. These must be kept up to date with any role or compensation changes.

While remote work and contract extensions are possible within Moroccan law, they need to be handled with care—especially as extended or informal arrangements may change the legal nature of the employment.

For businesses expanding into Morocco, partnering with an Employer of Record, like CXC, can simplify compliance with local contract requirements, making it easier to hire quickly and legally.

Employment contracts and policies in Morocco

Hiring in Morocco comes with a range of regulatory and practical considerations that shape how businesses engage with talent. While the country continues to modernise its labour framework, employers must be thoughtful when designing contracts and workplace rules. Knowing when documentation is required, and what policies must be put in place, can help reduce risk and improve compliance across the board.

Common employment policies in Morocco

Moroccan law allows for both written and verbal employment agreements, but written contracts are generally encouraged. While not mandatory for indefinite-term roles, they are required in specific cases—such as for agency workers or fixed-term contracts. A written contract helps establish clear terms and can provide valuable protection in the event of disputes.

Internal company rules also play a significant role in shaping employment policies and practices in Morocco. These internal regulations set out the rules governing the working environment, such as disciplinary procedures, health and safety, and grievance mechanisms. For companies with more than 10 employees, it is compulsory to adopt such internal regulations, and they must be submitted to and approved by a labour inspector.

Probationary periods vary depending on the nature of the employment. For instance, fixed-term contracts may include a trial period of just a few days, while more senior or technical roles under indefinite-term contracts may include a probation period of up to three months. These trial phases should always be defined in the contract if applied.

Best practices when administering employment contracts in Morocco

Although not always required by law, using a written agreement for every hire is considered a best practice. A clear and comprehensive contract sets expectations, improves transparency, and minimises legal uncertainty. When drafting employment contracts and policies in Morocco, employers should include key elements such as:

  • Identification of parties: Full legal names and addresses of both employer and employee.
  • Job role and responsibilities: A clear description of the role, reporting structure, and place of work.
  • Compensation: Details of salary, frequency of payment, and the method used.
  • Working time: Whether the role is full-time or part-time, details on shift patterns or flexibility, and protocols for changes.
  • Leave entitlements: Outline of annual leave, sick leave, and any additional leave rights.
  • Probationary period: If included, specify the duration and conditions for evaluation.
  • Termination provisions: Notice periods, severance obligations, and termination procedures.

To stay compliant, employers should familiarise themselves with Moroccan labour law, particularly around wages, working time, termination procedures, and benefits. Regular reviews of employment practices, especially when scaling up, can help businesses maintain alignment with evolving legal standards.

While Morocco offers a stable and growing labour market, partnering with an Employer of Record can help employers manage these requirements with ease. From drafting compliant contracts to managing local regulations, it ensures that hiring in Morocco is both strategic and secure.

Employment contract terms in Morocco

Employers hiring in Morocco will encounter a well-established system of employment agreements, shaped by the national Labour Code and informed by workplace practices. Whether a business is recruiting for permanent roles or short-term assignments, it is important to align contract terms with Moroccan law and labour standards to ensure compliance and maintain employee trust.

Types of employment contract terms in Morocco

The Moroccan labour market primarily recognises two main types of contracts: indefinite-term and fixed-term.

The indefinite-term contract (CDI) is the standard form of employment in the country. It has no set end date and is generally used when the role is ongoing. While not legally required to be in writing, having a formal document is widely encouraged to reduce the risk of future disputes.

In contrast, a fixed-term contract (CDD) must be in writing and is reserved for roles with a clear end date. This includes seasonal work, temporary coverage (such as maternity leave), or project-specific assignments. If these contracts are renewed multiple times or used outside permitted contexts, Moroccan courts may reclassify them as indefinite.

A third category worth noting is the ANAPEC contract, often used to support youth employment. These contracts are part of state-backed initiatives and may have special conditions, particularly around training and employer incentives.

No matter the type, contract terms in Morocco should reflect both statutory requirements and any more favourable terms provided under collective agreements or internal company policies. If any term is found to be less favourable than what the Labour Code prescribes, it may be rendered void.

Lengths of contract terms in Morocco

The length of contracts in Morocco depends on the type and employment circumstances. Fixed-term contracts must state their duration, which could range from a few weeks to a year or more, depending on the task or business cycle. In contrast, indefinite-term contracts continue until terminated by either party, subject to notice.

Regardless of contract duration, employers must provide each employee with a labour card that includes essential information such as the employee’s name, date of birth, CNSS number, start date, job title, and wage rate. Employers must also include their own identification details and update the card when there are changes to the job or salary.

Written contracts should contain:

  • Names and addresses of the employer and employee.
  • Job title, duties, and work location.
  • Regular working hours, including any overtime arrangements.
  • Salary and agreed benefits.
  • Trial period terms, if applicable.
  • Rules around termination, including notice periods.
  • Clauses covering confidentiality or intellectual property, if relevant.

Trial periods in Morocco vary by role: up to 3 months for managerial positions, 1.5 months for intermediate roles, and a few days to a month for fixed-term or entry-level roles. All trial periods should be clearly stated in the contract.

Termination provisions require a notice period, the length of which depends on the employee’s role and length of service. The statutory minimum is 8 days, but longer periods may apply based on internal rules or collective agreements. Terminating a contract without proper notice or before its term may result in compensation for the affected party.

Employers with 10 or more staff are also obliged to adopt internal regulations in consultation with staff representatives. These should cover procedures for hiring, dismissals, time off, absence, working hours, and workplace health and safety. Once developed, these rules must be reviewed and approved by a labour inspector.

In short, Moroccan contract terms must not only comply with law but also reflect fair treatment of workers. Employers that pay attention to the structure and substance of employment terms are more likely to enjoy smoother operations and stronger workforce relations.

Employment contract extension in Morocco

Extending employment contracts in Morocco is a common practice, especially in sectors that rely on project-based or seasonal work. However, the process must be handled carefully to avoid unintended consequences—particularly the automatic conversion of temporary roles into permanent ones. Employers should be mindful of the rules that govern renewals and how to structure extensions in a compliant and practical way.

How to extend employment contracts in Morocco

In Morocco, contract extension typically applies to fixed-term employment agreements, known as “contrats à durée déterminée” (CDDs). These contracts are meant for roles with a defined end date, such as temporary assignments, maternity cover, or seasonal work.

An extension of a CDD requires the mutual consent of both the employer and the employee. The extension should be documented in writing and ideally formalised through a contract extension letter. This letter should clearly state the new end date, reaffirm the existing terms, and be signed by both parties.

However, there are important limitations. If a CDD is extended multiple times or the total length of employment surpasses one-year, Moroccan law allows for the employment relationship to be reclassified as an indefinite-term contract (CDI). This reclassification provides the worker with stronger protections, particularly concerning dismissal procedures and severance.

Additionally, if neither party actively renews nor terminates the contract within one month of its expiry, the agreement is considered automatically renewed on the same terms. Employers should track expiry dates closely to avoid unintentional extensions.

Best practices when extending contracts in Morocco

To manage contract extension in Morocco effectively, employers should document every renewal. Using a clearly worded contract extension letter in Morocco helps confirm that both parties agree to the updated timeline and terms. It also serves as evidence of compliance should any disputes arise later.

Extensions should not be used to avoid the responsibilities tied to indefinite-term contracts. If a role is likely to continue beyond one year or multiple renewals, it may be more appropriate to convert the position into a CDI from the outset.

When dealing with freelancers or consultants, employers must also exercise caution. There are no legal restrictions on using independent contractors in Morocco, but if an individual works exclusively for one client over an extended period and relies on them financially, the relationship could be reclassified as employment. To avoid this, a well-structured service agreement should be in place, detailing:

  • Scope of services.
  • Duration of engagement.
  • Payment terms.
  • Tax obligations.
  • Termination conditions.

Clear distinctions between contractors and employees help businesses avoid potential misclassification risks.

Whether renewing a fixed-term contract or managing independent engagements, employers benefit from a well-organised, transparent approach. These practices not only support compliance but also build better relationships with workers and protect the company’s legal standing.

Fixed-term contracts in Morocco

Hiring employees on a temporary basis is sometimes necessary for operational flexibility. In Morocco, this is done through fixed-term contracts, known locally as contrats à durée déterminée (CDD). These contracts are tightly regulated and should only be used in specific, predefined situations. Employers who wish to stay compliant with local employment laws need to be aware of the terms and limits around their use.

Fixed-term contract workers in Morocco

Fixed-term contracts in Morocco are permitted only when the nature of the work justifies a temporary arrangement. These include circumstances such as:

  • Replacing a permanent employee who is on leave.
  • Responding to a temporary increase in business activity.
  • Seasonal roles, such as in agriculture or tourism.
  • Launching a new product, department, or location.

The contract must be in writing and include a defined end date or the specific event that will bring the employment to a close. If it does not contain this information, or if it is repeatedly extended without valid justification, the contract may be legally converted into an indefinite-term contract (CDI), which comes with stronger legal protections for the employee.

CDD contracts typically last up to one year. If extended beyond that, or if the employment continues uninterrupted after expiry, it is assumed to have converted into a CDI. Employers are required to include a break between contracts when renewing a fixed-term arrangement to avoid triggering automatic conversion.

Employment law provisions on fixed-term contracts in Morocco

The employment law outlines the rules for contract termination, renewal, and employee entitlements. When a fixed-term contract ends, it terminates automatically on the agreed date or upon completion of the specified task. There is no need for notice in these cases.

During the contract period, the employment relationship can only be ended early in specific situations such as serious misconduct or force majeure. If either party ends the contract without valid cause, the terminating party may owe compensation equivalent to the wages due for the remaining period of the contract.

In the event that the employer initiates an early termination, the employee must receive a minimum of two weeks’ notice. Employees on CDDs are also entitled to take their paid annual leave before the contract expires. Unused leave must be compensated if the employee cannot take it in time.
It is worth noting that these contracts should not be used to bypass the protections offered by CDIs. Employers are advised to assess whether the role genuinely requires a temporary arrangement or if a permanent contract is more appropriate.

Managing fixed-term employment within the bounds of Moroccan law ensures not only compliance but also trust and fairness in the employment relationship.

Working hours in Morocco

Managing employee schedules in Morocco involves aligning your operations with national labour regulations while maintaining business flexibility. Employers need to be aware of what qualifies as regular working hours, when overtime applies, and how many hours staff can legally work in total.

Regular working hours in Morocco

According to Article 184 of the Moroccan Labour Code, regular working hours in Morocco are limited to 44 hours per week. This typically translates to a five-day working week from Monday to Friday, with no more than 10 hours of work allowed in a single day. These limits apply across most sectors, though some collective agreements may provide for sector-specific adjustments.

Employers must ensure that work schedules are clearly defined in employment contracts or internal policies. Failure to comply with these provisions can result in disputes or penalties under Moroccan labour law.

Overtime in Morocco

If employees are asked to work beyond the regular working hours, the excess time must be compensated as overtime. Overtime work in Morocco must be pre-agreed and is subject to both time and pay constraints.

Employees can work up to 138 hours of overtime over a four-month period, or up to 250 hours in a calendar year. Employers must track and document these hours carefully to stay compliant.

Pay for overtime is set at:

  • 125% of the usual hourly rate for work done between 6 a.m. and 9 p.m.
  • 150% of the regular rate for work performed at night, from 9 p.m. to 6 a.m.

Overtime on rest days, public holidays or Sundays may be compensated at rates ranging from 150% to 200% of the base salary, depending on the terms of the employee’s contract or collective agreement.

Maximum working hours in Morocco

The law is clear: no more than 10 hours of work per day are permitted under standard conditions, including overtime. This maximum working hours limit is in line with efforts to maintain a healthy work-life balance and to uphold employee wellbeing.

Employers are encouraged to keep accurate records of work hours and overtime, not only to meet legal obligations but also to maintain transparency with employees. Where needed, labour inspectors may request documentation to ensure compliance.

In practice, adhering to these working hour limits help prevent burnout, promotes fairness, and supports productivity across teams.

Remote work in Morocco

The shift towards flexible work has brought remote work in Morocco into sharper focus for employers. Although Moroccan labour law does not provide detailed rules specific to remote or hybrid arrangements, employers can still structure remote work legally and effectively within the current framework.

Remote work legislation in Morocco

There is no stand-alone legislation governing remote work in Morocco. However, the Moroccan Labour Code outlines broader employment rights and obligations, which remain applicable regardless of where the employee performs their duties.

To implement remote work arrangements, employers and employees should mutually agree on key aspects such as:

  • Working hours.
  • Performance expectations.
  • Use of company equipment.
  • Communication and reporting methods.

These terms should ideally be formalised in the employment contract or through an annex. In the absence of specific legal requirements, clear documentation becomes particularly important to reduce ambiguity and maintain compliance.

Remote work taxes in Morocco

Employers managing teams who work remotely in Morocco must remain mindful of local tax obligations. Employees working from Morocco, even temporarily, may be considered Moroccan tax residents if they spend more than 183 days in the country in a calendar year. In such cases, they are subject to Moroccan income tax.

From the employer’s side, a local presence—such as a permanent establishment—can trigger corporate tax or registration requirements. This becomes especially relevant when foreign companies allow workers to work remotely from Morocco.

As remote work becomes more prevalent, employers should consult local tax advisors to ensure they are not inadvertently creating tax liabilities.

How to work remotely in Morocco

For employers looking to allow their staff to work remotely from Morocco, there are a few practical steps to consider:

  • Draft a written agreement detailing the remote work terms, even if not legally required.
  • Ensure compliance with Moroccan working hours, leave entitlements, and other employment conditions.
  • Review the immigration status of foreign nationals, if applicable.
  • Clarify tax residency and reporting obligations.

While remote work arrangements offer flexibility, they also introduce cross-border regulatory considerations. A structured approach that aligns with Moroccan labour and tax laws will help you support remote teams without risking compliance issues.

Customised employment contracts in Morocco

Every country has unique labour laws—Morocco is no exception. Non-compliance can expose your business to legal and financial risk.

At CXC, we help businesses stay compliant by drafting tailored employment contracts in Morocco and across 100+ countries.

Explore our Employer of Record solution or speak with our team today.

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