Employer of Record in Morocco

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

Businesses can only operate smoothly in Morocco if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Morocco below, to avoid any compliance issues.

Employment Contract Requirements

In accordance with Moroccan labor regulations, employers must provide employees with written documentation outlining key aspects of employment contracts, including:

• Company disciplinary codes
• Commencement date of employment
• Standard working days and hours
• Employee wage rate and method of wage calculation

Onboarding Process

We can help you get a new employee started in Morocco quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Probation Period in Morocco

All employees undergo a one-week trial period for any position. Subsequent probation periods vary based on job roles: 15 days for blue-collar workers, 45 days for white-collar workers, and three months for management.

In Morocco, the standard working week is set at 44 hours, typically spread over six days. This means employees usually work 8 hours per day, with a maximum of 10 hours on any given day.

Overtime is permitted in Morocco but is subject to strict regulations to ensure fair compensation for additional work. The maximum limits are 138 hours over four months and 250 hours annually.

Compensation ranges from 125% to 200% of the regular salary, depending on the time and day worked.

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Hiring in Morocco means navigating local labor laws, mandatory employee benefits, payroll taxes, and strict employment regulations. These requirements aren’t always intuitive, especially if your team lacks in-country legal or HR expertise. An Employer of Record steps in as the legal employer for your hires, managing all compliance-related responsibilities. This includes issuing locally compliant contracts, registering employees with relevant authorities, processing payroll, and handling social security contributions and taxes in line with national laws.

By handing over these complexities to an EOR, your business avoids costly compliance errors and the time required to master local employment standards. You can focus on growing your team and operations while trusting that the legal and administrative foundation is solid. Whether you're making one strategic hire or building out an entire team, the EOR keeps you compliant, removes guesswork, and reduces the risk of legal or financial penalties, without requiring you to open a legal entity or maintain a local HR team.

Employers in Morocco must navigate a structured payroll tax system encompassing income tax, social security contributions, and additional levies. Compliance with these obligations is vital to avoid penalties and maintain smooth operations.

Using payroll management software like Playroll can assist employers in consolidating payroll data and staying compliant with Moroccan regulations.

Running payroll in Morocco is complex, especially when you're hiring without a local entity. Local laws determine everything from tax withholdings and reporting deadlines to benefit contributions and currency requirements. Missteps can lead to fines, payment delays, or unhappy employees. An Employer of Record takes this burden off your plate by handling the full payroll process. Acting as the legal employer, the EOR ensures you remain compliant with all payroll-related obligations, while still allowing you to manage your team’s day-to-day work and performance.

Key Ways an EOR Supports Payroll in Morocco:

• Compliance Assurance: Ensures payroll aligns with local tax laws, labor regulations, and statutory deadlines.
• Payroll Processing & Tax Management: Calculates salaries, applies correct tax withholdings, and submits required reports.
• Benefits & Social Security Contributions: Manages employer obligations for pensions, health insurance, and other legal entitlements.
• Contract Generation & HR Administration: Drafts compliant employment contracts and supports onboarding, terminations, and HR tasks.
• Currency Payments: Issues timely salary payments in local currency, ensuring employees are paid accurately and on time.

In Morocco, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key visa types include the Temporary Work Visa for short-term employment (valid for up to 90 days), the Skilled Work Visa for professionals in specialized fields, and the Inter-Company Transfer Visa for multinational employees relocating to Moroccan branches.

Employers must comply with Moroccan labor laws, sponsor visas, and ensure proper documentation for international hires. Work permits are typically valid for one year with a maximum stay of 90 days per visit, with options for renewal, while digital nomads can now apply for Morocco's Digital Nomad Visa, which is valid for 6-12 months with possible renewal and requires proof of income around €1,500 per month.

Mandatory Leave Entitlement in Morocco

The annual leave entitlement in Morocco is 18 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Morocco

Morocco has 17 mandatory national public holidays in a year.

Paid Time Off in Morocco

After six months of continuous service, employees accrue 1.5 days of leave per month, totaling 18 paid days of annual leave. For employees under 18 years old, this entitlement can be raised to 24 days per year. Paid annual leave increases by 1.5 days every five years until reaching a maximum of 30 days.

Maternity Leave In Morocco

Pregnant employees in Morocco are granted 14 weeks of paid maternity leave, split into seven weeks before and seven weeks after birth. Maternity pay is provided at the regular salary rate (100%), although this payment is capped by the government at 6,000 MAD. To be eligible for maternity benefits, employees must have made at least 54 days of contributions in the last 10 months preceding their last day of work. Additionally, mothers have the option to request up to a year of additional unpaid leave.

Paternity Leave In Morocco

Male employees in the public sector are entitled to 15 days of fully paid paternity leave. In the private sector, fathers in Morocco are entitled to three days of paid paternity leave within the first month following the birth of their child.

Sick Leave In Morocco

Employees in Morocco are entitled to four days (or eight half days) of paid sick leave per year. If an employee is sick for more than 180 consecutive days within a year, the employer has the right to request their resignation.

Parental Leave In Morocco

Morocco does not have a separate shared parental leave policy.

Marriage Leave

An employee is entitled to up to 4 days leave when they get married, 2 days of which are paid.

Bereavement Leave

An employee is entitled to up to 3 days (1 day is paid) of bereavement leave in the death of an immediate family member.

Care Leave

Paid leave for surgery on the spouse or dependent child: 2 days. Leave for Circumcision: 2 days.

Administering employee benefits in Morocco requires more than just offering a standard package. Local labor laws often mandate specific entitlements, from health insurance to paid leave, and the rules can change without warning. Morocco also has unique standards for what an attractive, competitive benefits package looks like. For businesses without in-country expertise, meeting these obligations and expectations can quickly become risky and expensive. An Employer of Record acts as your compliance partner, ensuring all benefits are provided according to the latest legal requirements and without administrative strain on your internal team.

Beyond compliance, an EOR brings clarity and consistency to a process that’s often complex and fragmented. They handle enrollments, ensure accurate employer contributions, manage communications with local providers, and keep everything properly documented. This means employees get what they’re entitled to, and you avoid the headache of navigating benefits systems in a foreign market. Whether you're hiring one person or building a larger team, an EOR provides a clear, dependable structure that lets you offer competitive benefits without taking on unnecessary risk or workload.

Termination Process in Morocco

Employers in Morocco may terminate fixed-term contracts for reasons such as:

• Misconduct (Written warning is required)
• Poor work performance
• Mutual agreement
• Operational requirements

Notice Period in Morocco

The amount of notice is dependent on the function of the employee and the length of service. If the employer terminates the contract, the notice period is as follows:

• Notice periods for executives and similar positions in Morocco: less than 1 year requires 1 month, 1 to 5 years necessitates 2 months, and more than 5 years mandates 3 months.
• For employees in Morocco, the following applies depending on length of service: less than one year requires 8 days, 1 to 5 years necessitates 1 month, and more than 5 years mandates 2 months.

Severance in Morocco

Employers must offer severance pay to eligible employees, calculated at 96 hours per year of service for the first 5 years, rising to 144 hours per year for 6-10 years, 192 hours per year for 11-15 years, and 240 hours per year after 15 years respectively. The hourly rate is based on the average wages of the preceding 52 weeks.