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Notice period in Morocco

Termination in Morocco

Post-termination restraints in Morocco

Employment waivers in Morocco

Transfer of undertaking in Morocco

Minimise business risk with CXC’s end-to-end employment services

End of employment in Morocco

The end of employment contracts in Morocco is a structured process that must follow the country’s labour regulations to avoid disputes and penalties. Moroccan law allows termination under several conditions: resignation, mutual agreement, serious misconduct, economic redundancy, expiry of a fixed-term contract, or the employee’s decision to oppose a business transfer. In each case, the employer must follow specific procedures, including applicable notice periods, severance pay calculations, and documentation requirements.

A standard model of ending of employment procedure in Morocco begins with identifying the legal ground for termination. If based on disciplinary reasons such as serious misconduct, the employer must summon the employee for a preliminary interview, allowing them to explain their actions. This meeting is formalised in a signed report. For economic dismissals, employers may need to notify worker representatives and explore alternatives, especially in the case of mass layoffs.

In situations where both parties mutually agree to part ways, the process is usually concluded in the presence of a labour inspector. This results in a legally binding agreement, often referred to as a waiver, which bars the employee from making further claims. This procedure is essential for ensuring compliance and protecting both sides from future disputes.

Moreover, employers should be aware of additional legal tools such as post-termination restraints. Clauses like non-competes and non-solicitations are enforceable in Morocco, provided they are proportionate—typically capped at one year in duration and 200 km in geographic scope—and documented clearly in writing.

Given the legal nuances involved, especially when handling executive-level exits or business restructuring, partnering with an Employer of Record (EoR) such as CXC can streamline the process. With local compliance expertise, CXC helps employers navigate the complexities of Moroccan labour law while reducing risk and administrative burden.

Notice period in Morocco

Managing contract termination or resignation requires employers in Morocco to be aware of applicable notice periods and entitlements. Labour provisions on notice vary depending on job type, seniority, and whether the departure is voluntary or employer initiated. Employers should also be mindful of any applicable collective agreements, which may override statutory minimums.

Resignation notice period in Morocco

When an employee chooses to resign, the employment notice period in Morocco is typically defined in the employment contract or applicable collective agreement. If these are silent on the matter, standard Labour Code provisions apply. Employees are generally expected to provide advance notice based on their category (e.g., worker, employee, executive) and length of service. Resignation without proper notice may result in penalties, depending on the circumstances and contract terms.

Termination of employment notice period in Morocco

If the employer initiates the termination, the notice period in Morocco is explicitly determined by the employee’s job category and years of service:

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: 3 months.
For employees and workers:
○ Less than 1 year of service: 8 days.
○ 1 to 5 years of service: 1 month.
○ More than 5 years: 2 months.

These rules can be superseded by collective bargaining agreements, which must be reviewed before proceeding with a termination.

Severance pay in Morocco

Employees who have completed at least six months of service may be entitled to severance pay. Severance is calculated based on an hourly rate derived from the average salary over the previous 52 weeks. Rates increase with tenure:

96 hours of pay per year of service (up to 5 years).
144 hours/year (after 5 years).
192 hours/year (after 10 years).
240 hours/year (after 15 years).

These calculations are intended to ensure equitable compensation during involuntary termination.

Probation period in Morocco

All new employees undergo a one-week trial. Following this, the probation period in Morocco varies:

Blue-collar roles: 15 days.
White-collar roles: 45 days.
Managerial/executive roles: 3 months.

During this period, either party may end the contract with reduced obligations for notice or compensation. Employers should always document start and end dates clearly to avoid disputes.

Termination in Morocco

Reasons for termination of employment in Morocco

In Morocco, employers may end an employment relationship for a variety of lawful reasons, provided that proper procedures are followed. Fixed-term and indefinite contracts can both be subject to early termination in Morocco, but employers must be able to justify the decision.

Dismissal may occur on the basis of serious misconduct, poor performance, or economic necessity. Termination of employment reasons in Morocco are defined in the Labour Code and must be documented to avoid legal challenges.

Serious misconduct includes theft, insubordination, unauthorised absences, and other breaches of internal rules or collective agreements. In these cases, dismissal can be immediate, but the employer is still expected to follow a fair process. This involves conducting a preliminary hearing in which the employee is invited to explain their actions. A written summary of the hearing, signed by both parties, is required.

Where the cause is non-serious misconduct or performance-related, a more progressive process is expected. This might include performance reviews, improvement plans, or documented warnings.

Economic termination is also allowed when a business undergoes restructuring, financial hardship, or operational changes. In such cases, the employer must demonstrate the economic rationale, notify employee representatives (where applicable), and offer alternatives such as internal redeployment if possible.

Employees may also end the employment relationship by resigning. A written resignation notice, usually signed and legalised, is required, along with adherence to the applicable notice period.

Best employment termination practices in Morocco

To ensure legal compliance and reduce the risk of disputes, employers should adhere to the following best practices:

Always provide a written explanation for the termination.
Observe the applicable notice period, which varies by job category and length of service.
Conduct a preliminary interview in cases of alleged misconduct.
Document all proceedings and have them signed by the employee.
Calculate severance pay accurately. This is based on seniority and ranges from 96 to 240 hours of salary per year of service, depending on tenure.

Employers are also advised to consult the relevant collective agreement, as it may contain notice or severance rules that differ from statutory provisions.

Handling employee termination in Morocco with care not only ensures compliance with Moroccan laws that protect employees but also maintains a positive reputation and workplace morale.

Post-termination restraints in Morocco

Non-compete clauses in Morocco

Employers in Morocco may use post-termination restraints to protect their business interests after an employee leaves. One of the most common forms is the non-compete clause. These are permitted under Moroccan law, provided they meet specific criteria. While there is no detailed statutory framework, Moroccan courts assess such clauses based on Article 109 of the Dahir on Obligations and Contracts and established case law.

A non-compete clause in Morocco must serve a legitimate purpose. For instance, it can be used to protect trade secrets or customer relationships that an employee may have had access to during their employment. However, for the clause to be enforceable, it must be reasonable in both geographical scope and duration.

Typically, Moroccan courts accept restrictions of no more than one year in duration and a geographic scope of up to 200 kilometres from the original workplace. The employee’s position and level of access to confidential information are also considered when evaluating reasonableness.

There is no legal obligation to compensate the employee during the restricted period, though doing so may strengthen the enforceability of the clause. Most importantly, the restriction must be clearly written and accepted in the employment contract. In the event of a breach of non-compete in Morocco, employers can pursue damages but must demonstrate both the validity of the clause and the harm caused.

Non-solicitation clauses in Morocco

Employers can also include non-solicitation clauses in employment contracts, which prevent former employees from targeting clients or staff members after their departure. Like non-competes, these clauses must be limited in time and scope. The generally accepted period is no more than one year.

Customer non-solicitation clauses restrict former employees from approaching the employer’s clients or business contacts. Meanwhile, employee non-solicitation clauses prohibit them from poaching colleagues to join a competing company.

While these restrictions are enforceable in Morocco, courts will always balance the employer’s need for protection with the employee’s right to pursue future work opportunities. It is advisable to seek legal counsel to ensure any post-termination restrictions are clearly drafted, appropriate for the role, and compliant with Moroccan legal standards.

For employers hiring in Morocco, clearly defining, and documenting post-termination restraints in Morocco helps safeguard commercial interests while minimising legal risk.

Employment waivers in Morocco

In Morocco, waivers in employment settings are subject to strict legal controls. Employers cannot simply draft a waiver agreement that bypasses the protections offered by the Labour Code and related decrees. Moroccan law upholds employees’ rights to such an extent that any attempt to waive mandatory statutory provisions is considered invalid. However, there is a formal route for mutual agreement that can finalise an employment termination in a legally binding manner.

When an employment contract is ended by mutual consent, the procedure typically involves the labour inspector. This process is known as a conciliation, and it is a core feature of the Moroccan Labour Code. Article 41 outlines that the parties may appear before a labour inspector, who facilitates and formalises the agreement in the form of signed minutes. Once this conciliation document is signed, the agreement becomes final. The employee automatically waives any further claim to compensation or damages relating to the termination.

This makes such agreements the only recognised form of waiver agreement in Morocco that binds both employer and employee. It is not standard practice to negotiate settlements outside this context, and doing so without proper legal backing can expose employers to future claims.

These agreements usually address practical matters such as outstanding wages, severance pay, and unused holiday entitlements. For example, severance pay is typically calculated at one month’s salary per year of service, increasing with tenure. Employers must also observe the correct notice period, which varies from one to three months depending on the employee’s role and length of service.

Because of the binding nature of these agreements, and the potential legal implications if mishandled, employers are advised to consult legal counsel. A clear and compliant agreement signed before the labour inspector helps ensure that the termination process is not only legally sound but also minimises the risk of disputes later on.

Transfer of undertaking in Morocco

In Morocco, the process of transferring a business from one owner to another comes with important implications for employees. Article 19 of the Moroccan Labour Code governs the transfer of undertaking in Morocco, ensuring that employee rights are preserved in such transactions. For employers, understanding the legal obligations and employee entitlements is vital when a business transfer occurs.

One of the key elements of this legislation is the automatic transfer in Morocco of employment contracts to the new employer. When a company or part of its operations is transferred, employment contracts are carried over without the need for new agreements. This transfer happens by default unless an employee explicitly objects.

Employees are given the right to oppose the transfer of their employment to the new owner. If an employee does object, Moroccan law recognises this as just cause for them to terminate the contract. Importantly, in such cases, the employee is entitled to compensation as if they were subject to a collective dismissal. This protection offers workers agency while also safeguarding their financial interests if they choose not to stay with the new employer.

Employers must notify employee representatives, if they exist, about the upcoming transfer. However, there is no legal requirement to obtain consent from the representatives or from individual employees (unless an employee chooses to reject the transfer). The absence of a need for authorisation simplifies the administrative process, particularly for smaller businesses that may not have structured employee representation.

In practice, these provisions aim to balance employer flexibility with employee protection. The default mechanism of automatic contract transfer ensures continuity for most workers, while still providing a pathway for employees who may not wish to continue under new management.

For employers navigating a business transfer in Morocco, legal clarity and communication with employees remain crucial. Consulting legal counsel and providing timely notice to staff will help ensure the process is compliant with Moroccan labour law.

Minimise business risk with CXC’s end-to-end employment services

Employment contracts in Morocco can end for many reasons — from resignation and dismissal to mutual agreement or business restructuring. Whatever the cause, it is crucial to follow Moroccan labour laws to avoid unnecessary legal exposure.

At CXC, our solutions help ensure your organisation stays compliant and protected when the employment relationship ends. Whether you are managing individual resignations or broader workforce changes, we support you in handling exits properly and identifying opportunities to retain or redeploy talent when feasible, helping minimise disruption.

Speak to our team to discover how our Employer of Record (EoR) solution can simplify offboarding and support your business through every stage of the employment lifecycle.

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