The legal framework for dismissal in Morocco
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.
Types of dismissal: gross misconduct, unfair dismissal, and economic dismissal
Dismissal for gross misconduct is the most severe form of employer-initiated termination. Article 39 of the Labour Code provides an exhaustive list of faults considered serious: criminal offences affecting honour, trust, or morality resulting in a final custodial sentence; disclosure of trade secrets causing harm to the company; deliberate and unjustified refusal to perform work within the employee's competence; unjustified absences exceeding four days or eight half-days within a twelve-month period; deliberate or grossly negligent damage to equipment, machinery, or raw materials; faults causing considerable material damage to the employer; breach of safety instructions causing significant harm; incitement to debauchery; and any form of violence or assault against an employee, the employer, or their representative.
Unfair dismissal refers to any termination that is not based on a valid reason related to the employee's aptitude or conduct, or on the operational needs of the business. Article 35 of the Labour Code establishes the general principle that the employer must justify the dismissal with a valid reason. When a court rules the dismissal unfair, the employee is entitled to damages calculated at one and a half months' salary per year of seniority, capped at 36 months' salary (Article 41). This compensation is in addition to the severance pay and notice pay.
Economic dismissal for structural or technological reasons is governed by Articles 66 and 67 of the Labour Code. An employer planning to dismiss all or part of their workforce for economic reasons must first inform and consult the staff delegates and, where applicable, the works council. They must also obtain authorisation from the governor of the relevant prefecture or province. This administrative authorisation procedure is a distinctive feature of Moroccan law, designed to protect employment and encourage the search for alternatives to dismissal.
In practice, the boundaries between these categories are not always clear-cut. An employer may invoke gross misconduct where the employee considers the termination unfair. This is why the burden of proof is crucial: under Article 63 of the Labour Code, it is the employer who must prove the existence of a valid reason for dismissal. The employee, for their part, must demonstrate the abusive nature of the decision when challenging it before the tribunal.
The dismissal procedure: mandatory steps
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.
Notice period: duration and compensatory allowance
Unless gross misconduct is involved, dismissal of an employee on an open-ended contract requires observance of a notice period. The length of notice varies according to the employee's professional category and seniority. For workers and employees: 8 days for less than one year of seniority, one month for between one and five years, and two months beyond five years. For managers and equivalent: one month for less than one year, two months between one and five years, and three months beyond.
During the notice period, the employee is entitled to paid time off to seek new employment, set at two hours per day, not exceeding eight hours per week or thirty hours in any thirty consecutive days. The employee and employer may agree to consolidate these hours at the end or beginning of the notice period. This right to job-search leave is often overlooked but provides real protection for the dismissed employee.
When the employer waives the requirement for the employee to work the notice period, they must pay compensatory notice pay equivalent to the remuneration the employee would have received during the notice period. This includes the base salary as well as all related benefits and supplements. If the employee refuses to serve the notice period, they forfeit this entitlement unless otherwise agreed with the employer.
Severance pay: calculation and practical examples
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.
Legal recourse: challenging a dismissal before the tribunal
An employee who considers their dismissal unfair may bring the case before the court of first instance in the jurisdiction where the work was performed or where the employer is domiciled. The social chamber has jurisdiction over individual labour disputes. Before any court action, a mandatory preliminary conciliation attempt must be made before the labour inspector. If conciliation fails, a non-conciliation report is drawn up, which enables the employee to refer the matter to the court.
The limitation period for legal action is 90 days from the date of receipt of the dismissal letter (Article 65 of the Labour Code). This is a relatively short period and a trap for many employees who delay taking action. Once this deadline has passed, the employee permanently loses the right to challenge the dismissal and claim related compensation. It is therefore strongly advisable to consult a lawyer specialising in labour law as soon as the dismissal notification is received.
Before the tribunal, the burden of proof is shared but falls primarily on the employer, who must demonstrate that the dismissal is based on a valid reason and that the procedure was followed. The employee must prove the harm suffered. The court may order the employee's reinstatement, but in practice this measure is rarely imposed. Most commonly, the judge orders the employer to pay damages for unfair dismissal, in addition to severance pay and notice pay if these were not provided.
Damages for unfair dismissal are set at one and a half months' salary per year of seniority, capped at 36 months' salary. The court may also award compensation for job loss as well as reimbursement of wages for the period between dismissal and the judgment, limited to six months. Legal fees are borne by each party, but the employee may benefit from legal aid if they meet the income requirements.
Practical advice and common pitfalls
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.
Frequently Asked Questions
What is the notice period for dismissal in Morocco?
How is severance pay calculated in Morocco?
What constitutes gross misconduct justifying immediate dismissal?
What is the time limit for challenging an unfair dismissal in Morocco?
Does economic dismissal require administrative authorisation in Morocco?
Need a lawyer specialising in labour law?
Whether you are an employee facing dismissal or an employer seeking to secure a termination procedure, consult a specialist lawyer on AvocatLib to protect your rights.
Find a labour law attorneyRelated Guides
Divorce Proceedings in Morocco: Complete Guide 2026
Everything you need to know about divorce procedures in Morocco: types of divorce, steps, required documents, and timelines.
15 min readBusinessStarting an LLC in Morocco: Steps and Formalities
Practical guide to creating your limited liability company in Morocco. Capital, bylaws, registration, and legal obligations.
12 min readReal EstateBuying Property in Morocco: Rights and Precautions
Key steps to secure your property purchase in Morocco. Due diligence, sales agreement, and notarial deed.
10 min readSources & References
- Law No. 65-99 on the Labour Code - Official Gazette
- Dahir No. 1-03-194 of 14 Rajab 1424 promulgating Law No. 65-99
- Labour Inspection Guide - Ministry of Employment
- Court of Cassation case law in social matters
- Casablanca Bar Association - Compensation scales
- General Tax Code 2026 - Severance pay exemptions