In brief: In Morocco, the permanent contract (CDI) is the default form of employment, while the fixed-term contract (CDD) is the exception, limited to specific cases defined by Articles 16–18 of the Labour Code (Law 65-99). A CDD cannot exceed 1 year, renewable once, except in agricultural sectors. Every contract — written or verbal — binds both employer and employee to reciprocal obligations.
What Is an Employment Contract in Morocco?
An employment contract is the agreement by which a person undertakes to perform work under the direction and control of an employer, in exchange for remuneration. The Moroccan Labour Code (Law 65-99) governs this relationship to protect the rights of both parties.
The contract may be concluded in writing or verbally. However, a written contract is strongly recommended as it serves as evidence of mutual commitments in the event of a dispute.
CDI: The Standard Contract
Key Features of a Permanent Contract
The contrat à durée indéterminée (CDI), or permanent contract, is the normal and general form of employment in Morocco. Under Article 16 of the Labour Code, any contract that does not fall within the restrictive cases for a CDD is presumed to be a CDI.
A CDI has no end date. It may be terminated by either party in accordance with the rules on dismissal or resignation provided by law.
Advantages of a CDI
- Job stability for the employee
- Protection against unfair dismissal (severance, notice period)
- Cumulative seniority entitling the employee to progressive benefits
- Access to long-term CNSS benefits
CDD: An Exceptional Contract
Authorised Cases for a Fixed-Term Contract (Art. 16–18)
A fixed-term contract may only be concluded in the following situations:
- Replacement of an absent employee whose contract is suspended (illness, maternity, unpaid leave)
- Temporary increase in the company’s activity (work overload)
- Seasonal work by nature
- Opening of a business for the first time or of a new establishment
- Launch of a new product for the first time
Duration and Renewal
A CDD is limited to a maximum duration of one year, renewable once only (Art. 17). Beyond that period, the contract automatically becomes a CDI.
Sector exception: in the agricultural sector, a CDD may be set for a period of 6 months, renewable, without exceeding 2 years in total. Beyond that, it becomes a CDI.
Automatic Conversion to CDI
When a CDD continues beyond its term without formal renewal, it is automatically reclassified as a CDI. This reclassification entitles the employee to all CDI benefits, including seniority calculated from the start of the initial CDD.
Mandatory Contract Clauses
Although the Labour Code does not impose an exhaustive list of mandatory clauses, a well-drafted employment contract should include:
- Identity of the parties (employer and employee)
- Effective date of the contract
- Nature and duration of the contract (CDI or CDD)
- Position held and job description
- Place of work
- Working hours (weekly schedule)
- Remuneration (base salary, bonuses, benefits)
- Probation period duration and renewal conditions
- Notice period for termination
- Applicable collective agreement, if any
- Special clauses (non-compete, confidentiality, mobility)
Employer and Employee Obligations
Employer Obligations
- Provide the agreed work and necessary resources
- Pay wages on a regular schedule
- Comply with health and safety standards (Art. 281–303)
- Register the employee with the CNSS within the legal timeframe
- Issue a work certificate upon contract termination
- Respect employee dignity and prohibit all forms of discrimination
Employee Obligations
- Perform work diligently and in accordance with instructions
- Comply with the company’s internal regulations
- Preserve assets and tools provided by the employer
- Respect confidentiality obligations
- Follow health and safety rules
Suspension of the Employment Contract (Art. 32)
An employment contract may be temporarily suspended in the following cases:
- Compulsory military service
- Absence due to illness or accident duly certified
- Maternity leave (14 weeks)
- Temporary disability resulting from a work accident or occupational disease
- Strike exercised in accordance with the law
- Lawful temporary closure of the company
- Disciplinary suspension
During suspension, the employee retains acquired rights, including seniority, unless otherwise provided.
Foreign Workers
Hiring foreign workers in Morocco is subject to specific conditions:
- Obtaining a work permit (ANAPEC visa)
- The position must not be fillable by a Moroccan employee
- The contract must be endorsed by the Ministry of Employment
- The permit is valid for 1 year, renewable
Failure to comply exposes the employer to criminal and administrative penalties.
FAQ
Is a verbal employment contract valid in Morocco?
Yes, a verbal contract is legally valid. However, in the event of a dispute, the burden of proof lies with the party claiming the contract exists. It is therefore strongly advised to formalise the employment relationship through a written contract.
How many times can a CDD be renewed?
A CDD may be renewed once only, for a maximum total duration of one year (Art. 17). Beyond that, the contract is automatically reclassified as a CDI. In the agricultural sector, the total duration may not exceed 2 years.
What are the risks for an employer in case of an undeclared contract?
The employer faces fines ranging from MAD 25,000 to 30,000, criminal prosecution, and retroactive payment of all CNSS contributions owed. The undeclared employee may also file a complaint with the labour inspectorate.
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- CNSS in Morocco: Complete Guide
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