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	Morocco		Info-Prod Country Guide
JUDICIARY   BUSINESS FORMS & STRUCTURES   CURRENCY & BANKING   INTELLECTUAL PROPERTY TAXATION   INVESTMENT & TRADE   LABOR LAW   ENVIRONMENTAL LAW

Labor Law General The employment contract binding the employer to each of his employees is governed by the Royal Decree dated August 13, 1913, which lays down a code of obligations and contracts. Such contract may be written or oral. A decree of October 23, 1948 sets out a specimen contract applicable to all industrial and commercial establishments. It defines the reciprocal rights and duties of employer and employees. An employer, however, can make more favorable arrangements in his establishment, subject to agreement with the Minister of Labor. Workers have the right to join together in unions for the protection of their rights and to strike in defense for their collective interests. Nevertheless, the Inspectorate of Labor endeavors to settle disputes by mediation. At the same time, if both parties agree, arbitration may avoid recourse to strike action or legal action before the Tribunal of first instance. There is no legal requirement for employees to be involved in the management of companies or to be represented on the board of directors. Although there is no legislation requiring participation by labor in the profits of a business, a number of companies have implemented profit sharing plans. The work week is limited to forty-eight hours, with no more than ten hours worked per day. Every employee is entitled to a weekly day of rest and a number of statutory paid holidays. Salaries and Wages There are no legislated wage controls in Morocco other than the minimum wage. Therefore, wages and salaries can be freely contracted between employees and employers. Apart from agreed pay increases, an indexing system enables the government to raise by decree all wages and salaries effectively paid when the Central Commission for Prices and Wages records an increase of aleast 5 percent in the cost of living. Wages, whatever the method of remuneration (time rates, piece rates or job rates) must be paid at least twice a month, at a maximum of sixteen days' interval. Salaries must be paid at least once a month. Health and Safety The provision of medical services is compulsory in every firm employing more than fifty persons. Employers must provide the services of a doctor; alternatively, they may set up a joint service with other firms, supervised by a chairman. The operation of such health service is subject to inspection. Every firm must observe standard safety regulations. Certain forms of work considered as dangerous are covered by special regulations, including, inter alia, employment of women and children. The Inspectorate of Labor ensures that these regulations are observed. Termination of Employment Dismissal of personnel may take place for a number of reasons, such as reduction of jobs in the particular branch, incapacity owing to age or insufficient aptitude or as a disciplinary measure owing to a serious offense. Except in the case of a serious offense, the worker is entitled to notice, which varies according to his seniority in the firm and the nature of his work. Such a dismissed worker is also entitled, after a year's service, to compensation proportionate to the length of his service with the firm. Social Benefits Membership in the social security system (Caisse nationale de Sécurité Sociale or CNSS) is compulsory for all employers, and they are required to register all their workers. CNSS pays industrial and commercial workers family allowances and daily allowances in cases of illness, accident or occupational diseases not covered by workmens' compensation, allowances in case of death, disability pensions, old-age pensions and survivors' pensions. All employers and employees are covered by the social security system. Foreign workers coming to take up employment in Morocco participate on the same basis as Moroccan nationals. Previous Chapter Contents Menu Next Chapter

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