This guide helps you review the procedure followed by the employer, estimate your compensation and prepare your applications to the CNSS or the court.
Salma Tazi
Legal Editor — Family Law
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Economic dismissal in Morocco is the termination of an employment contract for reasons unrelated to the employee’s personal conduct. It may result from genuine economic difficulties, technological change, restructuring affecting jobs or the closure of the company. It is governed primarily by Articles 66 to 71 of Law No. 65-99 establishing the Labour Code, promulgated by Dahir No. 1-03-194 of 11 September 2003. In practical terms, an employer cannot simply affix the label “economic” to a letter to circumvent the rules governing disciplinary dismissal.
Articles 66 et seq. mainly govern the dismissal of all or some staff in certain companies that ordinarily employ at least ten employees. These include commercial, industrial and craft businesses, as well as agricultural or forestry undertakings falling within the scope defined by the Code. The procedure includes consultation with employee representatives followed by administrative authorisation. However, the threshold of ten employees does not mean that a small company may freely terminate a contract: it must still demonstrate a valid reason connected with the company’s operational requirements, in accordance with Article 35.
Collective dismissal is not defined by a single nationwide number of departures comparable to the thresholds used in certain European countries. Under the Moroccan system, the elimination of all or some positions within a company falling under Article 66 is sufficient to trigger the special procedure. A single employee may also contend that their position was eliminated for an economic reason. The court will then examine the true reason for the termination, whether the position was genuinely eliminated and, depending on the company’s size and activity, whether administrative authorisation was required.
This termination must be distinguished from dismissal for serious misconduct, as provided for in particular by Article 39 of the Labour Code. A fall in orders does not constitute employee misconduct. Conversely, an employer should not subsequently invoke restructuring if the letter alleges absences, errors or insubordination. This confusion is common in practice. The termination letter, meeting minutes, recruitment advertisements and the identity of the person taking over the position often make it possible to determine the true reason.
The grounds must be genuine, sufficiently specific and supported by objective evidence. A company may produce its balance sheets, income statements, changes in turnover, debt levels, the loss of a key contract or a study describing technological change. A temporary decline in sales or a general assertion that “economic conditions are difficult” is not necessarily sufficient. Before the Court of First Instance, Social Chamber, the employee may request that the employer substantiate the economic circumstances and the link between those circumstances and the elimination of the employee’s position.
An employer subject to Article 66 must inform employee delegates and, where they exist, trade union representatives within the company at least one month before carrying out the dismissal. The employer must provide them with relevant information, including the reasons for the proposal, the number and categories of employees concerned and the proposed period. In companies with a works council, it participates in accordance with the powers conferred on it by the Code. A purely formal meeting held after the departures have been announced does not meet the intended purpose of this consultation.
During this stage, the employer and employee representatives must consider ways to avoid dismissals or reduce their impact. These may include redeployment to an available position, adaptation training, a negotiated reduction in activity, a genuinely voluntary departure or the staggered elimination of jobs. The Code does not make every redeployment proposal a standalone requirement expressed in the same terms as in certain foreign legal systems. Nevertheless, a complete failure to seek solutions weakens the case that the dismissal was necessary and carried out in good faith.
The prior authorisation provided for by Article 67 is issued by the governor of the prefecture or province, based on the findings of an administrative committee. Caution: the file is not simply “declared” to the labour delegation, and the administration’s silence must not be treated as implied approval. The text provides for authorisation within a maximum period of two months from the application. A refusal decision must state reasons. Without authorisation where legally required, the employer is exposed to a serious challenge to the termination.
Where several employees in the same occupational category are concerned, Article 71 requires account to be taken of seniority, professional merit and family responsibilities. The criteria must not conceal discrimination based on trade union activity, sex, pregnancy, disability, religion or another ground prohibited by Article 9 of the Labour Code. The employee may compare their circumstances with those of colleagues who were retained. A position that is eliminated and then immediately filled by a new recruit is also an indicator that should be examined.
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A lawyer registered with the Casablanca Bar, I practise in advisory work and litigation for individuals and companies. I handle family law, real estate law, administrative law, commercial law, civil law and business law, providing rigorous and structured support at every stage of the case.
Holder of a Bachelor’s degree in Legal Sciences (Private Law) – French Section, awarded in 2013, Maître Zakaria BELKASSEH also holds a Master’s degree in Legal Sciences – Business Law Option, with the grade « Bien », from the Faculty of Legal, Economic and Social Sciences – Rabat Agdal – Université Mohammed V in 2015 In February 2016, he was sworn in and registered with the Casablanca Bar Association, placing his know-how and his constant determination to succeed at the service of the clients of CABNET BELKASSEH LAW FIRM, in order to provide them with a quality service that meets their expectations and requirements.
Mohamed Reda Deryany is a business lawyer with more than fifteen years of experience. He is also an arbitrator accredited by the Ministry of Justice in Morocco. He holds several degrees in Law. After training in Business Law at Université Hassan II in Casablanca and at Université de Paris II Panthéon-Assas, he was sworn in as a lawyer in March 2010. He is also certified in investment arbitration in Morocco, in human rights in Switzerland and in OHADA law. He leads several seminars in Morocco and abroad, notably at the prestigious Université Paris II- Panthéon Assas. He is also a well-known author who has been published in several peer-reviewed legal journals and in business magazines. He has likewise contributed to the publication of a collective legal work in France. He is also a member of the Arbitration Committee of the AHK Maroc.
The first step is written notification to employee delegates and trade union representatives present in the company. It must take place at least one month before the dismissals. The information provided must enable meaningful discussion and not be limited to a vague invitation. The representatives must be informed of the grounds, the numbers and categories affected, the provisional timetable and the measures proposed. The employee concerned may ask the representatives when they received the file and which documents were provided to them, even though the employee will not necessarily receive all confidential accounting documents in full.
The second step consists of consultations and negotiations on solutions to prevent the departures or mitigate their consequences. Minutes are drawn up at the end of the discussions and signed by the parties. A copy is sent to the provincial labour delegate. In practice, the dates, the capacity of the signatories, any reservations recorded by the representatives and the solutions actually considered should be examined. Pre-completed minutes or minutes signed under pressure may be challenged, but such a challenge requires consistent testimony or written communications.
The third step is the application for authorisation submitted to the governor of the prefecture or province. Under Article 67, it must be accompanied by the necessary supporting documents and the minutes of the consultations. Where the dismissals are based on economic grounds, the file includes financial and accounting information allowing the circumstances to be assessed. A committee chaired by the governor examines the application. The maximum statutory period is two months from the submission of an admissible file, not thirty days. The employer must be able to produce an authorisation decision where one is required.
Once authorisation has been obtained, each employee must receive a notice identifying the termination, its grounds and its effective date. Payment in lieu of notice or completion of the notice period must then be settled, as must statutory dismissal compensation, accrued untaken paid leave and other contractual sums. The employment certificate provided for by Article 72 must be issued within a maximum of eight days from the end of the contract. The employee should also request the documents needed to declare loss of employment to the CNSS.
Dismissed employees are entitled to priority rehiring under the conditions laid down by the Labour Code. It is therefore advisable to state in writing the intention to benefit from it and retain proof of dispatch. If the company quickly recruits someone to an identical or very similar position, the advertisement may serve two purposes: invoking priority rehiring and disputing whether the original position was genuinely eliminated. Dated screenshots, the complete advertisement and the name of the platform will be more useful than a mere oral assertion.
Article 43 of the Labour Code guarantees notice, except in cases of serious misconduct, and refers to regulatory texts or more favourable provisions. The minimum periods derive from Decree No. 2-04-469 of 29 December 2004. For managers and equivalent employees, the period is one month where seniority is less than one year, two months between one and five years, and three months beyond five years. These periods are often inaccurately summarised in termination letters, which automatically grant three months to every manager.
For employees and workers, the notice period is eight days where seniority is less than one year, one month between one and five years, and two months beyond five years. A collective agreement, employment contract or internal regulations may provide for a more favourable period. These documents should therefore be read before accepting the employer’s calculation. A provision that is less favourable than the statutory minimum cannot normally deprive the employee of their rights.
The employer may require the employee to work during the notice period or release them from attendance. If termination occurs without observance of this period, Article 51 establishes a right to payment in lieu of notice equal to the remuneration the employee would have received until the notice period expired. The calculation must include the usual salary and recurring components of remuneration. A release from work decided by the employer must therefore not become an unpaid period.
During the notice period, the contract continues to have effect. Salary, CNSS declarations and benefits due are normally maintained. The exact starting date depends on the notice received and must be compared with the departure date stated on the employment certificate. Beware of backdated documents: the employee should retain the envelope, acknowledgement of receipt, email or any evidence establishing the date on which the decision was actually received.
An employee employed under an indefinite-term contract acquires, after six months of work in the same company, the right to the statutory dismissal compensation provided for by Article 52. Article 53 establishes a progressive scale: 96 hours of salary per year for the first five years, 144 hours per year from the sixth to the tenth, 192 hours per year from the eleventh to the fifteenth, and then 240 hours per year beyond fifteen years. The calculation is performed bracket by bracket, and fractions of a year must be taken into account.
Reference remuneration is determined in accordance with Articles 55 to 57. It cannot be lower than the average salary received during the fifty-two weeks preceding termination. It includes the salary itself and supplementary payments of a recurring nature, subject to statutory exclusions. Seniority bonuses, regular commissions, benefits in kind and recurring bonuses must therefore be checked. Using only the basic salary stated in the contract may significantly reduce the compensation.
Consider an employee earning a gross monthly salary of 6,000 DH with eight full years of seniority. Using, for illustrative purposes, an hourly rate calculated by dividing 6,000 by 191 hours, the first five years represent 480 hours and the following three years 432 hours, for a total of 912 hours. The approximate compensation is then 28,649 DH. This result differs substantially from a calculation incorrectly based on 96 days or on dividing the monthly salary by 26 without a consistent conversion into an hourly wage.
Depending on the case, this compensation is supplemented by payment in lieu of notice, compensation for accrued untaken paid leave, any outstanding salaries or bonuses and potentially damages for unfair dismissal. Amounts should not be added mechanically without distinguishing their nature. For example, damages under Article 41 require a termination found to be unfair or a valid agreement, whereas statutory dismissal compensation is payable in a lawful economic dismissal once the seniority requirements have been met.
For tax purposes, Article 57 of the General Tax Code provides an exemption for certain dismissal compensation, voluntary departure compensation and certain damages, within statutory limits and subject to statutory conditions. The treatment depends on the nature of the amount, the statutory scale, a court decision or an approved settlement. The portion exceeding the limits may be taxable. In 2026, the annual version of the General Tax Code should be checked, and the employer should be asked for the breakdown of gross, exempt and taxable amounts shown on the final payslip.
The loss of employment benefit, or IPE, is a social security benefit distinct from the compensation paid by the employer. It was introduced by Law No. 03-14, promulgated by Dahir No. 1-14-194 of 24 December 2014, which amended the social security scheme. It applies to employees registered with the CNSS who involuntarily lose their jobs and remain fit for work. A redundancy may give rise to this entitlement, but merely receiving a dismissal letter is not sufficient: the contribution requirements and formalities must also be fulfilled.
The employee must provide evidence of at least 780 contribution days during the thirty-six months preceding the loss of employment, including 260 days during the last twelve months. They must be registered as a jobseeker with ANAPEC and actively seek work. The IPE is paid for a maximum of six months. Periods during which the benefit is paid also give rise to certain social entitlements under the conditions of the CNSS scheme. The employee should check their contribution record promptly, as months worked but not declared may prevent the file from being approved.
The amount corresponds to 70% of the average monthly salary declared during the reference period used by the CNSS and may not exceed the applicable statutory minimum wage. This cap should not be confused with the monthly cap of MAD 6,000 used for certain CNSS contributions. Because the SMIG and administrative parameters may change, the exact amount should be checked on the CNSS portal or at a branch on the date of application. Undeclared salaries are not normally included in the calculation.
The application must be submitted within sixty days following the loss of employment, unless a duly substantiated impediment is accepted under the applicable regulations. The file generally includes the CNSS form, a copy of the national identity card, bank account details, the certificate of loss of employment completed by the employer, and proof of registration with ANAPEC. Practical requirements may vary if the data has already been digitised. A dated acknowledgment of receipt should be obtained, and a complete copy of the file should be retained.
The IPE may be combined with statutory severance pay, notice pay, and paid leave because it is funded by the social security scheme and does not have the same legal basis. Its payment ceases, in particular, when the beneficiary resumes employment or no longer meets the requirements. In practice, processing may take several weeks and sometimes longer if the employer has not declared the most recent salaries. The employee should not wait for the conclusion of court proceedings before submitting the application within the sixty-day deadline.
As soon as the proposed measure is announced, the employee should save their contract and amendments, payslips, CNSS contribution record, performance reviews, communications relating to the restructuring, and the contact details of employee representatives. Upon departure, they should request written notification, the employment certificate, an itemised receipt for full and final settlement, proof of payment, and the certificate required for the IPE. Payslips for the last fifty-two weeks are used to verify the reference remuneration. Confidential business documents must not be unlawfully removed or disclosed.
The receipt for full and final settlement is governed by Articles 73 to 75 of the Labour Code. To have a discharging effect, it must comply with specific content and form requirements, including an itemisation of the amounts paid. The employee may challenge it within sixty days following signature, by registered letter with acknowledgment of receipt or through legal proceedings, specifying the rights concerned. Writing “subject to all my rights” is prudent, but it does not replace a detailed challenge made within the statutory period.
Claims relating to the performance of an individual employment contract are generally time-barred after two years pursuant to Article 395 of the Labour Code. This period should not be confused with the sixty-day period for challenging the full and final settlement or the sixty-day period for applying for the IPE. Depending on the claim, other procedural deadlines may apply. Waiting for an informal response from the employer, extended mediation, or the end of CNSS payments does not automatically interrupt the limitation period.
The dispute is brought before the territorially competent Court of First Instance, sitting in employment matters. Employment proceedings are, in principle, exempt from court fees and qualify automatically for legal aid under Article 273 of the Code of Civil Procedure, but expenses may still be incurred for copies, service of documents, expert assessments, or translations. In 2026, lawyers’ fees are freely determined by agreement. For purely indicative purposes, observed fees often range from MAD 3,000 to MAD 15,000 depending on the city, the issues at stake, the hearings, and the avenues of appeal.
The employee may first refer the matter to the Labour Inspectorate to request an attempt at settlement. The inspector may summon the parties, examine certain documents, and draw up an official report, but does not replace either the governor in the authorisation procedure or the court in its final assessment of the dismissal. Article 41 governs preliminary conciliation and compensation for unfair termination. A signed agreement must be read carefully because a properly concluded settlement may become final and extinguish the claims it covers.
If no agreement is reached, the claim is filed with the employment division of the Court of First Instance having jurisdiction based on the place of work or under the applicable territorial jurisdiction rules. The proceedings include an attempt at judicial conciliation before examination of the merits. The employee sets out the irregularities: lack of a genuine reason, failure to consult, missing administrative authorisation, opaque selection criteria, incomplete calculation, or immediate replacement in the same position. The application must separately quantify salary, notice pay, severance pay, leave, and damages.
Proof is based on a body of evidence. The employee submits their letter, payslips, management messages, recruitment advertisements, admissible witness statements, and information obtained from employee delegates. The employer must, for its part, provide the economic and procedural supporting documents on which it relies. When decisive accounting records are not accessible to the employee, the court may order their production or an investigative measure. However, an expert assessment is not automatic and may significantly lengthen the proceedings.
If the dismissal is found to be unfair, Article 41 sets damages at one and a half months’ salary for each year or part of a year of service, capped at thirty-six months. This amount is distinct from statutory severance pay and notice pay. The judge cannot automatically award thirty-six months to every employee: the cap is reached only when the length-of-service calculation results in that amount. The judgment may be appealed within the time limits established by the Code of Civil Procedure, generally thirty days from its valid service.
As of September 2026, the enforceable rights remain those established by legislation promulgated and published in the Official Gazette. Political announcements, social agreements, CESE reports, or preliminary draft amendments do not, by themselves, amend Articles 66 to 71. The reference “Draft Law No. 21-18,” sometimes associated online with a redundancy reform, is not a reliable reference to use without a corresponding official text. Before applying a new threshold, a new scale, or mandatory mediation, its promulgation must be verified on the websites of the SGG and the Ministry of Justice.
Certain situations require specific analysis. An employee protected because of a representative mandate benefits from the safeguards applicable to employee delegates or trade union representatives. A pregnant employee or an employee on maternity leave is protected by Articles 152 et seq., subject to legally permitted situations. A company undergoing judicial reorganisation or liquidation is also governed by the rules of Book V of the Commercial Code and the decisions of the Commercial Court, without employee claims disappearing. Moroccan employees working abroad are often subject to the law designated by their contract and the law of the country where the work is performed.
The first mistake is immediately signing a general receipt without checking each line of the calculation. The second is allowing the CNSS deadline to expire while waiting for the employer to provide all documents voluntarily. The third is believing that administrative authorisation makes any challenge impossible: the judge may still examine individual rights, calculations, discrimination, or the true scope of the stated reason. Conversely, the absence of authorisation does not automatically result in payment of every amount claimed; each claim must be based on a demonstrated legal ground and calculation.
An employment lawyer becomes particularly useful when the company refuses to disclose the governor’s decision, when several categories of employees are selected opaquely, when a termination agreement is proposed, or when the amount exceeds a straightforward salary arrears claim. The lawyer can reconstruct the reference remuneration, check the limitation period, draft the challenge to the full and final settlement, and distinguish claims that may be combined. Their role is not to promise an outcome, but to convert the available facts into legally admissible arguments and claims.
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