IRC HR SERVICES

Employer of Record (EOR) in Morocco

Currency

Moroccan dirham

Ease Of Doing Business

53

Population

 38,003,775

Capital

Rabat

Language

Arabic and Moroccan Berbe

GDP Growth

7.9%

Summary

Morocco is the westernmost country in North Africa’s Maghreb region, officially known as the Kingdom of Morocco. It has land boundaries with Algeria to the east and the disputed territory of Western Sahara to the south and overlooks the Mediterranean Sea to the north and the Atlantic Ocean to the west.

Morocco also claims the Spanish exclaves of Ceuta, Melilla, and Peón de Velez de la Gomera, as well as a number of small Spanish-controlled islands off the coast.

Morocco has a population of 37 million people and covers an area of 710,850 km2. Its official languages are Arabic and Berber, and the main religion is Islam.

French and a Moroccan dialect of Arabic are also commonly spoken. Moroccan culture is a vibrant mix of Berber, Arab, and European cultures, with Rabat as the capital and Casablanca as the largest city.

Since Idris I established the first Moroccan state in 788 AD, the country has been governed by a series of independent dynasties, reaching its zenith in the 11th and 12th centuries under the Almoravid and Almohad dynasties, when it dominated much of Iberia.

The Portuguese expanded their territory to include parts of Morocco starting in the 15th century. Nonetheless, the Moroccan dynasties of Marinid and Saadi opposed foreign dominance in other ways, and Morocco was the only North African country to avoid Ottoman occupation.

In 1631, the Alaouite dynasty seized power and continues to rule Morocco today.

Its strategic position near the Mediterranean’s mouth, however, gradually drew the attention of European powers. Morocco was divided into French and Spanish protectorates in 1912, with Tangier serving as a foreign region.

It regained independence and reunified in 1956, and since then has been a relatively stable and prosperous country, with Africa’s fifth-largest economy.

Morocco claims sovereignty of the non-autonomous Western Sahara region, which it has dubbed the Southern Provinces.

After Spain decided to decolonize the region and hand it over to Morocco and Mauritania in 1975, a civil war erupted between the two countries and some of the locals. Mauritania relinquished its claim to the region in 1979, but the war raged on.

A cease-fire was reached in 1991, but the question of sovereignty remained unresolved.

Morocco now controls two-thirds of the nation and attempts to resolve the conflict have so far failed to break the diplomatic impasse.

Morocco is a semi-constitutional unitary monarchy with a democratically elected parliament. The country has considerable clout in both Africa and the Arab world and is regarded as a global middle force. The Arab League, the Union for the Mediterranean, and the African Union are all members of the nation. Morocco’s King wields extensive executive and legislative authority, especially over the military, foreign policy, and religious affairs.

Public holidays

DateHoliday name
January 1New year’s day
January 11Proclamation of Independence
April 22, 23 & 24Eid Sghir Holiday
May 1Labor Day
June 29 & 30Eid Kbir Holiday
July 19Fatih Muharram
August 14Oued Ed Dahab day
August 20Revolution Day
August 21Youth Day
September 27Eid El Mawled
November 6Green March day
November 18Independence Day

Type of leave

Annual Leave

After six months of continuous service, an employee accumulates 1.5 days of leave per month up to a standard entitlement of 18 paid days of annual leave. This can be increased to 24 days per year for employees under the age of 18 years old.

Public holidays

Morocco recognizes 12 public holidays.

Sick days

Employees are entitled to 4 days (or eight half days) of paid sick leave per year. If the absence lasts more than four days, the employee must inform the employer of the probable duration of absence and provide a medical certificate justifying the absence reason.

Maternity leave

Female employees are generally entitled to 14 weeks of 100% paid maternity leave. They may also take an additional one year of unpaid leave

Paternity leave

Fathers are generally entitled to 3 days of paid paternity leave.

Parental leave

Female employees are generally entitled to 14 weeks of 100% paid maternity leave. They may also take an additional one year of unpaid leave. Fathers are generally entitled to 3 days of paid paternity leave.

Other leave

– Marriage Leave:

The employee: 4 days

Child of the employee or of a child from a previous marriage  of the employee’s spouse: 2 days

– Bereavement Leave:

Spouse, of a child, of a small child, of an ascendant of the  employee or of a child from a previous marriage of the  employee’s spouse: 3 days

Brother, a sister of the employee, a brother or sister of the   employee’s spouse or an ascendant of the spouse: 2 days

– Leave for Circumcision: 2 days

– Leave for surgery on the spouse or dependent child: 2 days

Employment termination

Termination process

Employers must have sufficient reasons and provide notice  before terminating an employee.

Notice period

Less than 1-year service the notice period is one month. Between 1 year to 5 years’ service, the notice period is two months. More than five years’ service, the notice period is three months.

Severance pay

Employers should pay severance pay (if applicable) if an employee has at least six months’ service, at 96 hours of salary per year of service, increasing to 144 hours per year after five years of service, 192 hours per year after ten years, and 240 hours per year after 15 years.

Probation period

The probation period is set to three months for executive positions. The probation period is set to a month and a half for office employees. The probation period is set to 15 days for on-site laborers. The probation period can be renewed once.

Working hours

General working hours

The standard work week in Morocco is 48 hours a week, or eight hours a day, Mondays to Fridays. The majority of the businesses, offices and establishments start work from 9 AM to 5 PM.

Overtime

Overtime hours are limited to two per day and 80 per  year. With consent from the Worker’s Council, overtime may be increased to 100 hours per year. Overtime pay is 125 percent of the basic rate during the day (6 a.m. to 9 p.m.). Overtime is paid at 150 percent of the basic rate for labor performed at night  (9 p.m. to 6 a.m.). Weekends and public holidays,  overtime is doubled to 150 percent for daytime work  and 200 percent for evening work, in addition to  getting an alternate day of rest. The complete amount  of overtime must be paid on the salary’s next pay date.

Employee benefits

General employee benefits

Morocco’s healthcare system is a mix of  public and private. All Moroccans are required to join in AMO, the country’s public  healthcare system, which provides basic  healthcare as well as some hospital treatment.

Access to private clinics is also  possible with private insurance.

Company pensions, extra vacation, childcare allowance, transportation allowance, supplementary insurance, fitness allowance,  and training allowance are all common  employee perks in Morocco.

Taxes

Corporate Tax

31%

Individual Income tax

38%

VAT / GST

20%

VISA

Foreigners who desire to work in Morocco must first get a work permit (attesta-  tion de travail) from the National Agency for the Promotion and Employment of  Skills (Agence Nationale de Promotion de l’Emploi et des Competences),  abbreviated as ANAPEC.

The documents required for getting a work permit include:

(1)Application forms with the appropriate stamps.

(2)Passport copies.

(3)Photographs, passport-size.

(4)Employment contract copy (legalized by the government office); and

(5)Copies of degrees and diplomas.

All firms intending to sponsor foreign nationals for work in Morocco must use the  online site Teacher, according to the Ministry of Labor and Professional  Integration. Following completion of the online application, the system will create  three copies of the E-Work Permit forms, which must be printed, stamped, and  signed by the foreign national and the authorized signatory of the sponsoring  organization. Both signatures must be notarized and recognized by the corre-  sponding Moroccan diplomatic post overseas.

Once completed, the foreigner must submit the original paperwork as well as the  required documentation to the Moroccan Department of Employment for  approval. Once this is completed, the foreigner is free to enter the nation and  begin working.