What is the difference between a fixed-term and open-ended employment contract in Morocco?

An open-ended contract (CDI — Contrat à Durée Indéterminée) is the standard form of employment in Morocco and offers the greatest job security. A fixed-term contract (CDD — Contrat à Durée Déterminée) is an exception, limited to one year (renewable once) and only permitted for specific temporary needs such as replacing an absent employee or seasonal work. A CDD that does not meet legal requirements can be reclassified as a CDI by a judge.

Morocco Labor Law — Complete Guide

Q: What is the minimum wage (SMIG) in Morocco in 2024?

The SMIG (Salaire Minimum Interprofessionnel Garanti) in Morocco is set at 3,111.39 MAD gross per month as of 2024, equivalent to approximately 17.10 MAD per hour. This applies to all private sector employees outside agriculture. The agricultural minimum wage (SMAG) is calculated differently on a daily basis.

Q: How do I claim wrongful dismissal in Morocco?

If you believe you have been unfairly dismissed, you can first file a complaint with the Labor Inspection (Inspection du travail) for a mandatory conciliation attempt. If conciliation fails, you may take your case to the Social Court (tribunal du travail). If the court finds the dismissal wrongful, it can award damages of up to 36 months of gross salary, in addition to any legally owed severance pay.

Q: How is severance pay calculated in Morocco?

Legal severance in Morocco is calculated based on seniority brackets: 96 hours of salary for the first 5 years, 144 hours for years 6 to 10, 192 hours for years 11 to 15, and 240 hours for more than 15 years. The base is the most favorable average between the last 52 weeks and the last 3 months of total remuneration.

Employment contracts, minimum wage (SMIG), working hours, paid leave, termination rights and protection against unfair dismissal under Moroccan law.

The Moroccan Labor Code (Law 65-99)

Labor relations in Morocco are governed by Law 65-99, which forms the Labor Code and came into force in June 2004. This comprehensive legislation covers all aspects of the private-sector employment relationship: contract formation and termination, wages, working hours, occupational health and safety, collective labor relations, and dispute resolution.

The Labor Code applies to all private companies operating in Morocco, regardless of size or sector, with certain exceptions for specific industries (public sector, maritime fishing, agriculture governed by the SMAG). Where the Code is silent, collective agreements and professional customs fill the gaps.

Employment Contracts: CDI and CDD

Moroccan labor law recognizes two main types of employment contract:

CDI (Open-ended contract): The standard and most protective form of employment. It has no fixed end date and can only be terminated for a genuine and serious reason following the legally prescribed procedure.
CDD (Fixed-term contract): Permitted only in specific circumstances defined by law — replacing an absent employee, addressing a temporary surge in activity, or seasonal work. Maximum duration is one year, renewable once. A CDD used outside these conditions can be reclassified as a CDI by the labor court.

Contracts may be oral or written, but a written contract is strongly advisable to prevent disputes over agreed terms.

Minimum Wage (SMIG) in Morocco 2024

The SMIG (Salaire Minimum Interprofessionnel Garanti) — Morocco's national minimum wage — has been set at 3,111.39 MAD gross per month (approximately 17.10 MAD/hour) following the 2024 revision. No employer may pay below this threshold. Violation is a criminal offense and may trigger labor inspection proceedings and back-pay obligations.

In the agricultural sector, a separate SMAG (agricultural minimum wage) applies, calculated on a daily rather than monthly basis. The minimum wage is periodically reviewed by government decree following economic assessments and social dialogue.

Working Hours and Overtime

The standard legal working week in Morocco's private sector is 44 hours. Overtime is permitted but triggers mandatory pay supplements:

+25% for overtime worked during regular weekday daytime hours;
+50% for overtime worked at night;
+50% for overtime on Sundays or public holidays (daytime);
+100% for overtime on Sundays and public holidays at night.

Employees are entitled to a mandatory weekly rest period of at least 24 consecutive hours. The specific rest day may vary by sector.

Paid Leave Entitlements

Every employee is entitled to 1.5 working days of paid leave per month worked, giving a minimum of 18 days per year. Entitlement increases with seniority: one additional day per 5 years of service within the same company. Special leave is also provided: 4 days for marriage, 3 days for the birth of a child, and 3 days for the death of a close relative.

Termination of Employment

An employer wishing to terminate an employee for misconduct must follow a strict procedure: written convocation to a preliminary hearing, the hearing itself (where the employee may bring a representative), and a written, reasoned termination notice. Notice periods vary by employee category: 8 days for workers, 1 month for mid-level employees and staff, and 3 months for senior executives.

Unless the termination is for gross misconduct, the employer must also pay a legal severance indemnity calculated on the basis of the employee's seniority, starting from the first year of service.

Protection Against Unfair Dismissal

A dismissed employee who believes the termination was wrongful may first bring the matter before the Labor Inspection for a mandatory conciliation process. If that fails, the case goes to the Social Court (labor tribunal). A judge who finds the dismissal abusive or procedurally flawed may order reinstatement or award damages of up to 36 months of gross salary, in addition to all legally owed indemnities.

Have a question about your employment contract, a dismissal, overtime pay, or workers' rights in Morocco? Ask Adala — our AI legal assistant specializing in Moroccan law.

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Frequently Asked Questions

What is the minimum wage (SMIG) in Morocco in 2024?

The SMIG is set at 3,111.39 MAD gross per month (17.10 MAD/hour) as of the 2024 revision. Paying below this threshold is a criminal offense. A separate daily agricultural minimum wage (SMAG) applies in the farming sector. The SMIG is revised periodically by decree following social dialogue.

How do I claim wrongful dismissal in Morocco?

First, file a complaint with the Labor Inspection (Inspection du travail) to attempt mandatory conciliation. If that fails, you may sue at the Social Court (labor tribunal). A successful claim can result in damages of up to 36 months of gross salary, on top of legally owed severance pay. Time limits apply, so act promptly after dismissal.

What is the difference between a fixed-term and open-ended contract in Morocco?

An open-ended contract (CDI) is the standard form offering the most job security. A fixed-term contract (CDD) is an exception, capped at one year (renewable once), and is only lawful for specific temporary needs. If a CDD is used unlawfully — wrong circumstances or excessive duration — a court can reclassify it as a CDI with full job protection rights.

How is severance pay calculated in Morocco?

Legal severance is calculated by seniority bracket: 96 hours of salary for the first 5 years, 144 hours for years 6–10, 192 hours for years 11–15, and 240 hours beyond 15 years. The salary base used is whichever is more favorable to the employee: the average of the last 52 weeks or the average of the last 3 months.

The information on this page is provided for general informational purposes only and does not constitute legal advice. For specific situations, consult a lawyer registered with a Moroccan Bar Association.