Dismissal in Morocco: The Procedure to Follow and the Compensation Due

Dismissal is one of the main sources of disputes between employers and employees in the Agadir region, whether in hospitality, fishing, agri-food, retail or services. For employers, a badly handled procedure turns a justified dismissal into an unfair one, with substantial compensation to pay. For employees, knowing their rights means being able to react in time. Here are the essentials of the Moroccan Labour Code.

Grounds for dismissal

The Labour Code mainly distinguishes between:

• dismissal for serious misconduct, which can take place without notice or severance pay when the misconduct is proven and the procedure followed;
• dismissal for non-disciplinary reasons or for misconduct that is not serious, which entitles the employee to notice and compensation;
• dismissal for economic, technological or structural reasons, subject to a specific procedure and, in businesses above a certain size, administrative authorisation.

The law lists examples of serious misconduct: theft, breach of trust, serious insults, public drunkenness, deliberate and unjustified refusal to carry out work within the employee’s remit, unjustified absence beyond a certain length, violence at work and disclosure of a professional secret causing harm to the business, among others.

A scale of sanctions

For misconduct that is not serious, the employer must in principle follow a graduated scale of sanctions: warning, reprimand, suspension or second reprimand, before considering dismissal for a repeat offence. Skipping these steps risks the dismissal being found unfair.

The procedure: the prior hearing

Before any disciplinary dismissal, the employee must be able to defend themselves. They are heard by the employer or a representative, within a short time of the facts being established, in the presence of a staff delegate or a union representative of their choice. A record of the hearing is drawn up and signed by the parties.

The dismissal decision is then notified to the employee, by hand against receipt or by registered letter, within a short time, and a copy is sent to the labour inspector. The letter must state the reason or reasons for dismissal.

An error in this procedure, even where the misconduct is real, can be enough to make the dismissal unfair.

What the employee can obtain

Lawful dismissal for a reason other than serious misconduct

• notice, whose length depends on seniority and professional category, or pay in lieu;
• severance pay, due from a certain length of service and calculated according to years worked;
• any untaken paid leave and outstanding wages.

Unfair dismissal

In addition to notice and severance pay, the employee can obtain damages calculated at one and a half months’ salary per year or part-year of service, up to a ceiling set by law, or ask to be reinstated.

Conciliation before the labour inspector

Before going to court, the employee can use preliminary conciliation before the labour inspector. Any agreement signed at that stage is final and cannot be challenged in court afterwards, so its content must be checked carefully.

The final settlement receipt

At the end of the contract, the employer often asks the employee to sign a final settlement receipt (“solde de tout compte”). The employee can retract it within the period set by law, but it is better not to sign without checking the sums paid.

The time limit to act

A claim challenging a dismissal must be brought within ninety days of receiving the dismissal decision. After that, the employee loses the right to challenge it. Disputes go before the employment section of the Court of First Instance, for example in Agadir or Inezgane.

Advice for employers

1. Put employment contracts and internal rules in writing.
2. Record the facts in writing as soon as they occur.
3. Follow the hearing procedure and time limits scrupulously.
4. Register your employees with the CNSS.
5. Have the dismissal letter reviewed before sending it.

For other aspects of running a business, see setting up an SARL in Agadir and the essential clauses of a commercial contract.

A worked example

A hotel in Agadir dismisses a receptionist for repeated lateness, with no prior hearing and no earlier sanction. The employee goes to court within ninety days. Because there was no proper procedure and no graduated sanctions, the dismissal is found unfair and the employer is ordered to pay notice, severance pay and damages. Had the procedure been followed, the employer could either have corrected the situation or secured the termination. This simplified example shows that form matters as much as substance.

Frequently asked questions

Can a fixed-term contract be ended early?

In principle only for serious misconduct or force majeure; wrongful early termination gives rise to damages.

Can an employee be dismissed while on sick leave?

Duly certified illness suspends the contract for a period; dismissal on that ground alone is regulated. Each case must be examined individually.

An employment lawyer in Agadir

The office of Maître Said Laachili advises employers and represents employees in Agadir, Inezgane and Ait Melloul: contracts, disciplinary procedures, conciliation and claims before the employment section, as part of its employment law and business law practice. A dismissal to prepare or challenge? Contact the office promptly.