Dismissal in Morocco: a comprehensive guide for 2026

Dismissal law in Morocco is primarily governed by Law No. 65-99 on the Labour Code, which came into force on 7 June 2004. This founding legislation profoundly restructured employer-employee relations by establishing a protective framework for workers while preserving the flexibility needed by businesses. Before this law, the applicable regime rested on the Dahir of Obligations and Contracts (DOC) of 1913 and scattered texts that were often insufficient to regulate termination practices.

The Moroccan Labour Code distinguishes several forms of dismissal: dismissal for personal reasons (disciplinary or otherwise), dismissal for economic, structural, or technological reasons, and termination during the probationary period. Each category is subject to specific rules regarding procedure, justification, and compensation. The legislator intended to ensure that any unilateral termination of an open-ended contract by the employer is surrounded by procedural and financial safeguards.

Case law from the Moroccan Court of Cassation has considerably enriched the interpretation of Labour Code provisions. Several rulings handed down between 2020 and 2025 have clarified the concept of gross misconduct, the criteria for unfair dismissal, and the methods for calculating compensation. In 2026, legal practitioners must master not only the text of the law but also recent case law trends in order to effectively advise employees and employers.

It is also worth mentioning the role of the Labour Inspectorate, attached to the Ministry of Economic Inclusion, Small Business, Employment and Skills, which intervenes at several stages of the dismissal procedure. The labour inspector may be consulted for conciliation, and their involvement is mandatory in certain cases of collective economic dismissal.

The procedure for dismissal on personal grounds follows strict formalities. Article 62 of the Labour Code requires the employer, before pronouncing dismissal, to give the employee the opportunity to defend themselves. In practice, the employer must summon the employee to a preliminary hearing within a period of no less than eight days following the discovery of the fault. This hearing must take place in the presence of a staff delegate or union representative chosen by the employee. Minutes of the hearing are drawn up by the company administration, signed by both parties, and a copy is given to the employee.

After the hearing, if the employer decides to proceed with the dismissal, the decision must be notified by registered letter with acknowledgement of receipt. This dismissal letter must state the reason(s) justifying the decision, the date of the preliminary hearing, and be accompanied by the minutes. Article 63 specifies that the dismissal decision must be hand-delivered or sent by registered letter within 48 hours of the date of the decision. A copy of the dismissal letter must be sent to the labour inspector.

Failure to follow this procedure exposes the employer to sanctions. If the dismissal is pronounced without a preliminary hearing or without written notification, the court may consider the termination unfair, regardless of whether or not a valid reason exists. Moroccan case law is consistent on this point: procedural defects alone are sufficient to characterise unfair dismissal, even when the employee's fault is proven.

For economic dismissal, the procedure is more onerous. The employer must provide the staff delegates with all necessary information, including the economic reasons, the number of employees affected, and the planned timeline. A month of negotiation is provided to seek alternatives. If negotiations fail, the file is referred to the governor, who has one month to make a decision. The governor's silence is deemed a rejection of the dismissal request.

Severance pay is owed to any employee dismissed after at least six months of service in the same company, except in cases of gross misconduct. Articles 52 and 53 of the Labour Code set out the calculation methods. It is determined based on the employee's seniority and calculated on the average hourly wage received during the 52 weeks preceding the termination date.

The statutory scale is as follows: 96 hours' pay per year of seniority for the first five years; 144 hours' pay per year for the period from the sixth to the tenth year; 192 hours' pay per year from the eleventh to the fifteenth year; and 240 hours' pay per year beyond the fifteenth year. This scale is cumulative: each bracket applies to the corresponding seniority period.

As a concrete example, an employee with 12 years' seniority and a gross monthly salary of 8,000 dirhams would have their compensation calculated as follows: the hourly rate is 8,000 / 191.10 (legal monthly hours), approximately 41.86 MAD. For the first five years: 96 x 41.86 x 5 = 20,092.80 MAD. For years six to ten: 144 x 41.86 x 5 = 30,139.20 MAD. For years eleven and twelve: 192 x 41.86 x 2 = 16,074.24 MAD. Total: 66,306.24 MAD. This amount is exempt from income tax within the limits specified by the Labour Code.

For a senior manager with 20 years' seniority and a monthly salary of 25,000 MAD, the calculation would yield a significantly higher amount. The hourly rate would be approximately 130.82 MAD. The total severance would reach roughly 341,741 MAD, broken down across four seniority brackets. These figures illustrate the importance for companies of provisioning severance costs and for employees of understanding their rights precisely.

For employees, the first recommendation is to carefully preserve all documents relating to the employment relationship: contract, payslips, correspondence, emails, work certificates. In the event of a dispute, these documents will be decisive in establishing seniority, salary amount, and the circumstances of the dismissal. It is also advisable not to sign any waiver or settlement document without first consulting a lawyer.

For employers, strict compliance with the dismissal procedure is the best protection against convictions for unfair dismissal. Even when the employee's fault seems obvious, neglecting the preliminary hearing or written notification can prove extremely costly. Moroccan courts systematically sanction procedural defects, and the absence of hearing minutes or a reasoned dismissal letter is enough to reclassify the termination as unfair.

A common pitfall concerns the probationary period. The employer may freely terminate the contract during this period, but must observe a minimum notice period. Moreover, the duration of the probationary period is strictly regulated: it may not exceed three months for managers, one and a half months for employees, and fifteen days for workers. Beyond these durations, any termination falls under the standard dismissal regime.

Finally, post-dismissal settlements between employer and employee are possible and common in practice. However, they must meet certain conditions to be valid: they must include mutual concessions, be in writing, and signatures must be legalised. The employee has a cooling-off period allowing them to withdraw from the agreement. A well-drafted settlement, with legal counsel on both sides, enables the dispute to be resolved amicably and swiftly.