Morocco – Employer of Record

Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Morocco. Your candidate is hired via Globalization Partners’ Morocco PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.

Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Morocco while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Morocco.

Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 150 countries around the world, quickly and painlessly.

Morocco is located on the Northwest coast of Africa, bordering both the Atlantic Ocean and the Mediterranean Sea. The country is largely covered by deserts and high mountains.

When negotiating terms of an employment contract and offer letter with an employee in Morocco, it may be useful to keep the following in mind:

Public Holidays in Morocco

Morocco celebrates 13 national holidays:

  • New Year’s Day
  • Anniversary of the Independence Manifesto
  • Labour Day
  • Feast of the Throne
  • Anniversary of the Recovery Oued Ed-Dahab
  • Anniversary of the Revolution of the King and the People
  • Youth Day
  • Anniversary of the Green March
  • Independence Day
  • Aid el Ftr
  • Aid El Adha
  • 1er Moharrem
  • Aid El Maoulid Annabaoui.

Bonus in Morocco

Some companies offer a 13 month bonus, and seniority bonuses are also common.

Working Hours in Morocco

In general the work week is 44 hours, and although there is a substantial muslim population, the usual business days are Monday through Friday.

Vacation in Morocco

After one year of service, employees are generally entitled to 24 days of paid annual leave.

Sick Leave in Morocco

Employees are generally eligible for sick leave if they have 54 days of contributions in the prior six months of coverage. Sick pay begins on the 4th day and is usually about two-thirds of the average daily wage.

Maternity/Paternity Leave in Morocco

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.

Termination/Severance in Morocco

Probationary periods are allowed and may be renewed once, for indefinite term contracts their initial durations are:

  • 3 months for executives
  • 1 1/2 months for white collar workers
  • 15 days for blue collar workers

Fixed term contracts may have probationary periods of up to one day per week of the contract, with a cap of 2 weeks for contracts of less than six months and a cap of one month for contracts of longer than six months.

Employment contracts may be terminated at the end of any month as follows:

  • less than one year of service: one month’s notice
  • two to nine years of service: two months’ notice
  • 9+ years of service: three months’ notice

On termination, employees are generally eligible for a severance payment based on their length of service and hours of pay.

Taxes in Morocco

Employers and employees contribute to social security. The amount ranges and can be up to 6.29% of wages for employees and up to 20.1% for the employer contribution. Some contributions are capped, but not all.

Health Insurance in Morocco

Morocco has a public/private healthcare system. All Moroccans must enroll in AMO, the national healthcare system, which covers basic healthcare and some hospital care.

Private insurance is also available for access to private clinics.

Additional Benefits in Morocco

Common employee benefits in Morocco include:

  • Company pensions
  • Additional vacation
  • Child care allowance
  • Transportation allowance
  • Supplemental insurance
  • Fitness allowance
  • Training

Employment Contracts in Morocco

It is legally required to put a written employment contract in place in Morocco, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Morocco should always state the salary and any compensation amounts in Moroccan diram rather than a foreign currency.

This information is provided as general accepted information and is not intended as advisory services.

Why Globalization Partners

Establishing a branch office or subsidiary in Morocco to engage a small team is time consuming, expensive and complex. Moroccan labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Morocco. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Morocco PEO and Global Employer of Record Platform provides you piece of mind so that you can focus on running your business.

If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Morocco, please contact us.