Unfair Dismissal in Morocco: Protect Your Rights & Compensation

The question of wrongful dismissal (often referred to by Arabic terms arbitrary dismissal or arbitrary dismissal) constitutes a major problem in Moroccan labor lawAlthough the employer has the right to terminate the employment contract, this right is not absolute and is subject to strict conditions. According to Articles 34 and 35 of the Labor Code, a dismissal must be based on a valid reason. The reason must be acceptable and the process must be carried out in accordance with legal procedures. established by the modawwanat ach-choghl. In the absence of a valid reason or in the event of non-compliance with these procedures, the dismissal may be considered abusive, entitling the employee to compensation.

The aim of this article is to provide a clear and detailed understanding of what a wrongful dismissal in Morocco. We will discuss the legitimate and illegitimate grounds for dismissal, the steps an employee must take in case of abuse, and above all, we will detail the Method for calculating the various allowances to which he is entitled. Our ambition is to equip employees with the necessary knowledge to fully understand their rights and defend them effectively in the face of an unjustified dismissal.

I. Understanding Unfair Dismissal in Morocco

A. The principle of dismissal in Morocco as regulated by law

In the context of Moroccan labor lawThe fundamental question of whether an employer has the right to dismiss an employee is clearly addressed by the modawwanat ach-choghl (Labor Code). The Articles 34 and 35 This code stipulates that, although the employer has the option to terminate an employee's employment contract, this right is absolutely not discretionary or arbitrary.

For a dismissal to be considered legal and not abusive, two cumulative and essential conditions must be met:

    1. The employer must have a acceptable and justified reason for the dismissal.
    2. The employer must It is imperative to comply with all procedures and legal measures. provisions of the Labour Code concerning the termination of the contract.

In other words, even if an employee commits serious misconduct, if the employer fails to follow the legal procedures required for dismissal (for example, respecting the notice period), the termination of the contract may be deemed unfair. Conversely, the absence of a valid reason also renders the dismissal unfair. This strict framework aims to protect employees' rights against a potential unilateral and unjustified termination of their employment contract.

B. Legitimate and illegitimate grounds for dismissal

The Moroccan Labour Code distinguishes several types of reasons for which an employer may legitimately proceed with a dismissal:

  1. Persistent minor professional misconduct : If an employee commits minor professional misconduct and the employer has already applied the disciplinary sanctions provided for in Article 37 of the Labor Code (such as warnings or reprimands), but this misconduct persists, the employer may then proceed with dismissal.
  2. Serious professional misconduct Article 39 of the Labor Code lists a set of offenses considered serious (for example, those detailed in Article 40). If an employee commits such serious misconduct, the employer has the right to dismiss them directly. However, it is It is imperative to respect legal procedures. associated with dismissal for serious misconduct. Failure to comply with these procedures, even in cases of proven serious misconduct, can transform the dismissal into an unfair dismissal.
  3. Economic, technological or structural reasons Dismissal can also be justified by reasons related to the company's situation, such as... technological, structural or economic reasons, or in the event of company closureThese specific cases are also subject to precise legal procedures.
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On the other hand, a The dismissal is considered unfair. (Unfair dismissal or arbitrary termination) in the following situations:

    • When there is no no serious fault committed by the employee, or if the alleged misconduct does not justify termination of the contract.
    • When a serious offense has indeed been committed, but the employer did not follow legal procedures required for dismissal, including the notice period or the formal steps prior to termination of the contract.

It should also be noted that the law provides for cases where the employer himself commits a serious misconduct on the part of the employee, for example by exerting unjustified pressure, which may give the employee the right to consider their contract as terminated by the employer.

II. Steps to Follow in Case of Unfair Dismissal

A. Evidence Collection

When an employee believes they have been the victim of unfair dismissal (الطرد التعسفي), one of the most crucial steps is the collection of solid evidenceWithout conclusive evidence, it becomes difficult to demonstrate to the competent authorities that the termination of the employment contract was unjustified or that legal procedures were not followed. The Moroccan Labor Code, through the modawwanat ach-choghlstrictly regulates the grounds and procedures for dismissal, which implies that any dispute must be substantiated.

Several types of evidence may be relevant to support the employee's case:

    • Direct evidence of termination by the employer without written justification If the employer verbally announces the end of the employment relationship, using phrases such as: "Sidi, get out of your job." (Sir, leave your post) or "Sir, go away." (Sir, leave). In this case, it is essential to try to obtain proof of this breakup.
    • Testimonials The presence of witnesses who were present at the announcement of the dismissal or at events constituting abuse can be crucial. Witnesses can attest to the incident, for example by stating: "We were present during the incident.".
    • Report by a bailiff If the employer refuses to provide a written document formalizing the dismissal, the employee may directly hire a bailiff to go to court and claim your rightsThe bailiff can then officially record the termination of the employment contract and the employer's failure to comply with procedures. This record constitutes official evidence in court.
    • Documentary elements : Any document related to employment (contract, payslips, correspondence, previous unfounded warnings, etc.) can be used to prove the absence of legitimate grounds or non-compliance with procedures.

Gathering this evidence is a fundamental step that precedes any attempt at conciliation or legal action, because it is on the basis of this evidence that the legitimacy of the employee's complaint will be assessed by the authorities or the courts.

B. The conciliation phase before the Labour Inspectorate

Once the evidence has been collected, the first formal step the employee can take is to request the intervention of theLabour Inspection (مفتش الشغل). Although this step is described as "optional and preparatory" (اختيارية تمهيدية), it is strongly recommended as it aims to find an amicable and quick solution between the parties.

The Labor Inspector, acting as mediator, schedules a hearing to which both the employer and the employee are invited. The main objective of this conciliation is to reach a consensual agreement (حل توافقي). Two main outcomes can result from this:

  1. The employee return at his workstation.
    1. The payment of compensation to the employee in exchange for the definitive termination of the contract, thus avoiding lengthy and costly legal proceedings.
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It is imperative to emphasize that Any conciliation agreement reached before the Labour Inspectorate must be formalized and signed. by both parties in front of the inspector. Without this formalization, the agreement has no legal value and cannot be invoked later in court.

C. Recourse to the competent courts

If the conciliation phase before the Labor Inspectorate fails, that is, if no agreement is reached between the employer and the employee, the employee then has the option of to take legal action in the competent courts (The competent courts) pour faire valoir ses droits.

Before the court, and based on the evidence presented, the judge will examine the validity of the dismissal. If the court establishes that the employee was indeed the victim of an unfair dismissal, it will issue a judgment that may have two main outcomes:

  1. The reinstatement of the employee at his workstation.
    1. L’granting of various allowances to the employee as compensation for the harm suffered.

In practice, reinstatement is less common, with most rulings awarding financial compensation to the employee, particularly given the deterioration of the working relationship, which often makes a smooth return to work within the same company difficult. This is why understanding and calculating these compensations becomes essential for the employee.

III. Calculating Unfair Dismissal Compensation in Morocco

When the court determines that a dismissal is unfair, and if no amicable settlement can be reached with the Labor Inspectorate, the employee is entitled to several types of compensation. This compensation aims to redress the harm suffered as a result of the unjustified termination of the employment contract. There are primarily three categories of compensation paid by the employer, plus one paid by the National Social Security Fund (CNSS).

The calculation of these allowances is based on the last net salary received by the employeemore specifically the average salary of the last 52 weeks (approximately the last year of employment). It is crucial to note that if the employee received a salary lower than the Guaranteed Minimum Interprofessional Wage (SMIG), it is the amount of the minimum wage that will be used as the basis for calculation allowances, not the actual salary which is lower than the legal minimum wage. The hourly minimum wage is stated as being 14.81 dirhams.

Here are the different allowances and how they are calculated:

A. Notice Period Compensation (Compensation for the notice period)

This compensation is due if the employer (or the employee) fails to respect the legally required notice period before terminating the employment contract. Its amount is equal to the remuneration that the employee would have received during the notice period that was not respectedThe length of the notice period varies depending on the employee's professional category and seniority:

    • For managers and equivalent positions :
      • Less than one year of seniority: 1 month.
      • Between 1 and 5 years of seniority: 2 months.
      • More than 5 years of seniority: 3 months.
    • For employees and workers :
      • Less than one year of seniority: 8 days.
      • Between 1 and 5 years of seniority: 1 month.
      • More than 5 years of seniority: 2 months.

B. Compensation for Damages (Compensation for damages)

This compensation is provided for by law.Article 41 of the Moroccan Labour CodeIt is calculated as follows:

    • The employee is entitled to one and a half months (1.5 months) of net salary for each year of seniority spent within the company.
    • This compensation is capped at 36 months' salaryThis means that even if the employee's seniority exceeds this theoretical threshold, the total amount of compensation for damages cannot exceed 36 months' salary.
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C. Severance Pay (compensation for dismissal)

This compensation is regulated by theArticle 52 of the Labour Code and concerns employees with permanent contracts (CDI) who have more than six months' seniority in the same company. Its calculation is more complex, being based on a number of hours per year of seniority, with progressive scales:

    • The amount of this compensation is calculated by multiplying the employee's hourly rate (monthly salary divided by 26 days then by the number of hours worked daily) by the number of hours accumulated according to seniority.
    • The seniority brackets and corresponding hours are as follows:
      • For the first 5 years of seniority : 96 hours of pay per year.
      • For years of seniority between 5 and 10 years : 144 hours of pay per year.
      • For years of seniority between 10 and 15 years old : 192 hours of pay per year(Note: the source mentions 162 hours for this period, which could be a slight variation or a transcription error. The sources indicate 192 hours).
      • For years of seniority over 15 years old : 240 hours of salary per year.
    • Calculation method for the total amount of this compensation The seniority brackets are calculated cumulatively and separatelyFor example, for an employee with 15 years of service, the first 5 years are calculated at 96 hours per year, the next 5 years (from the 6th to the 10th) at 144 hours per year, and the last 5 years (from the 11th to the 15th) at 192 hours per year. All years are not multiplied by a single rate.

D. Unemployment Compensation (Compensation for job loss)

Unlike other compensation, this one is not not paid by the employer, but by the National Social Security Fund (CNSS)To be eligible, the employee must meet certain conditions related to their previous contributions. The payment of this allowance is limited to a period of six months.

It is important to note that Compensation for notice, damages, and dismissal is tax-exempt. for both the employer and the employee. The total amount the employee will receive is the sum of these various calculated allowances.

In short, the labor law Moroccan law offers a protective framework for employees in the event of unfair dismissal, guaranteeing avenues of appeal and financial compensation intended to mitigate the consequences of an unjustified termination of the employment relationship.

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