In brief: Disciplinary dismissal in Morocco is governed by the Labour Code and requires a formal hearing within 8 days, written notification, and respect of notice periods. Gross misconduct (theft, violence, trade secret disclosure) allows immediate termination without severance, while minor misconduct follows a graduated sanctions process. A chartered accountant ensures compliant severance calculations.
Disciplinary dismissal in Morocco is a procedure legally regulated by the Moroccan Labour Code. As such, it is essential for every employer and employee to understand this process.
Disciplinary dismissal is not limited to a simple decision to terminate an employment contract. Indeed, this procedure involves a series of actions and justifications that the employer must follow. This procedure ensures fairness and legal compliance.
This article aims to clarify the disciplinary dismissal procedure in Morocco. Employers should also be aware of the criminal liability of directors in Morocco when handling dismissals. It aims to provide detailed and practical information to:
- Valid grounds: identify the legitimate grounds for disciplinary dismissal in Morocco;
- Misconduct classification: differentiate between minor misconduct and gross misconduct;
- Rights and duties: explain the obligations of both employer and employee throughout the process.
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Legal Steps for a Disciplinary Dismissal in Morocco
The first essential step is the employee hearing. Indeed, Article 62 of the Labour Code requires holding a hearing session. This session must take place within 8 days of the misconduct being identified.
It requires the presence of at least 3 participants:
- First, the employee;
- Next, the employer or their representative;
- Also, a staff delegate or union representative;
- And optionally, a bailiff.
A. In the Case of Non-Serious Misconduct
For non-serious misconduct, the employer must follow a graduated disciplinary sanctions procedure. Article 37 of the Labour Code defines the progressive nature of these sanctions.
This procedure begins with a warning, followed by reprimands and, if necessary, a suspension not exceeding 8 days.
If the employee does not correct their behavior despite these warnings, the employer may then proceed with dismissal under the Moroccan Labour Code, with the approval of the labour inspectorate. Note that employees who are still within their probation period may be subject to different termination rules.
B. In the Case of Gross Misconduct
For gross misconduct, Article 39 of the Moroccan Labour Code lists several behaviors that may justify immediate dismissal, such as disclosure of trade secrets, workplace violence, or prolonged unjustified absence. In these cases, the employer may dismiss the employee without notice or severance pay, provided the legal procedure has been properly followed.
C. Notification of the Decision
Once the hearing has been conducted and the dismissal decision made under the Moroccan Labour Code, the employer must notify the employee by registered letter with acknowledgment of receipt, in accordance with Article 63 of the Labour Code. This letter must clearly state the grounds for dismissal.
D. Compliance with the Notice Period
Finally, Article 56 of the Labour Code specifies that, except in cases of gross misconduct, a notice period must be observed before the disciplinary dismissal takes effect. This period varies depending on the employee’s length of service.
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Minor Misconduct vs Gross Misconduct: Understanding the Difference
The distinction between minor misconduct and gross misconduct is crucial in the disciplinary dismissal process in Morocco. Although the Moroccan Labour Code does not explicitly define non-serious misconduct, it grants the employer the freedom to assess misconduct based on the company’s internal rules. Minor misconduct may include behaviors such as repeated lateness, declining performance, or unjustified absences over a short period.
A. Disciplinary Dismissal in Morocco - Minor Misconduct
In the case of minor misconduct, the employer must follow a graduated disciplinary sanctions procedure as set out in Article 37 of the Labour Code. These sanctions begin with a warning, followed by reprimands and, if necessary, a suspension not exceeding 8 days. If the employee does not modify their behavior after these warnings, dismissal under the Moroccan Labour Code may be considered, with the approval of the labour inspectorate.
B. Disciplinary Dismissal in Morocco - Gross Misconduct
Conversely, gross misconduct, under Article 39 of the Labour Code, is behavior that significantly harms the company or seriously violates the employee’s contractual obligations. This includes acts such as disclosure of trade secrets, workplace violence, breach of trust, theft, physical assault, or prolonged unjustified absence.
List of Gross Misconduct Under the Moroccan Labour Code
The Moroccan Labour Code, in its Article 39, precisely lists the offences considered as gross misconduct that may justify immediate dismissal without severance pay or notice. These offences include:
- Disclosure of a trade secret causing harm to the company.
- Theft, breach of trust, public intoxication, and use of drugs.
- Physical assault and serious insult.
- Deliberate and unjustified refusal to perform work within the employee’s competence.
- Unjustified absence for more than four days or eight half-days during a twelve-month period.
- Serious deterioration of equipment, machinery, or raw materials due to serious negligence or a deliberate act by the employee.
- Failure to follow safety instructions resulting in considerable damage.
- Incitement to debauchery and any form of violence or aggression against an employee, the employer, or their representative, affecting the operation of the company.
These offences, given their severity, allow the employer to proceed with immediate dismissal, underscoring the importance of trust and responsibility in the employer-employee relationship.
C. Legal Consequences
It is essential for the employer to properly document the facts and follow the legal procedures for each type of misconduct. In the case of dismissal deemed wrongful, Article 61 of the Labour Code provides for the payment of damages to the dismissed employee, in addition to severance pay and notice pay. Employers should also understand the taxation of severance pay in Morocco when calculating final settlements.
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Role of the Chartered Accountant in Ensuring Compliance and Fairness of Disciplinary Dismissal Procedures in Morocco
The chartered accountant plays an essential role in implementing fair disciplinary dismissal procedures that comply with Moroccan legislation. Their involvement ensures that the rights of all parties are respected and that the company complies with legal requirements.
A. Assessment and Advisory
- Internal Procedure Audit: The chartered accountant can audit the company’s internal discipline policies and procedures to ensure they comply with the Moroccan Labour Code.
- Labour Law Advice: They provide valuable advice on the legal aspects of dismissal procedures, helping the company understand its obligations and avoid disputes.
B. Documentation and Traceability
- Record Keeping: They ensure that all documents related to the dismissal, including warnings, hearing minutes, and notifications, are properly drafted and archived.
- Transparency and Evidence: The chartered accountant helps maintain a trail of actions and decisions taken, thus providing a solid basis in the event of a dispute or labour inspection.
C. Severance Calculation
- Determining Severance Pay: In the case of disciplinary or wrongful dismissal, they advise on and calculate the compensation owed to the employee, taking into account length of service, the type of procedure, and other relevant factors under the Labour Code.
- Assessment in Case of Dispute: If a dismissal is contested, the chartered accountant can assess the claims for compensation or damages, providing an objective analysis based on legislation and accounting practice.
D. Compliance Assurance
- Regulatory Compliance: They play a key role in ensuring the company’s regulatory compliance, ensuring that all dismissal procedures comply with labour laws.
- Knowledge Updates: The chartered accountant stays informed of legislative and regulatory developments, ensuring that the company’s practices evolve in line with legislative changes.
The involvement of a chartered accountant in dismissal processes under the Moroccan Labour Code is therefore crucial to ensure fairness, compliance, and the protection of the rights of both employees and employers.
Frequently Asked Questions
What constitutes a serious fault justifying disciplinary dismissal in Morocco?
Under the Moroccan Labour Code, serious faults include theft, fraud, substance abuse at work, physical assault, serious insubordination, deliberate damage to company property, and disclosure of trade secrets. The Labour Code provides a non-exhaustive list, and courts may assess additional circumstances on a case-by-case basis.
What is the procedure for disciplinary dismissal in Morocco?
The employer must follow a strict procedure: convene the employee to a hearing within 8 days of learning of the fault, conduct the hearing in the presence of a union representative or employee delegate, issue a written dismissal decision within 48 hours of the hearing, and notify the labour inspector. Failure to follow this procedure can render the dismissal wrongful.
What compensation is owed in case of wrongful dismissal in Morocco?
In case of wrongful dismissal, the employee is entitled to severance pay calculated based on length of service, damages for wrongful termination typically equivalent to 1.5 months of salary per year of service, compensation for the notice period, and any accrued but unpaid leave. The Labour Code also provides for additional damages assessed by the courts depending on the circumstances. A chartered accountant can provide an objective assessment of these amounts, ensuring compliance with legal thresholds and protecting the rights of both parties.
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