Hiring in Morocco

The terms set out role, salary in MAD, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

French is the standard contract language for commercial roles, and foreign hires must be employed on the Ministry of Labour's model contract.

Fixed-term contracts are only permitted in limited cases, such as covering an absent employee or a temporary rise in activity, and most EORs default to indefinite terms.

Set probation from day one. A renewal is allowed once only, taking the maximum for managers to six months.

Some EORs shorten probation as policy because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at a 25% premium between 6am and 9pm and 50% at night, rising to 50% and 100% respectively on the weekly rest day, with an annual cap of 100 hours.

Senior professional hires are covered too, so agree in writing how extra hours are recorded and paid.

Entitlement starts after six months' continuous service. Many employers of professional staff grant more than the statutory floor, so check the market figure for the role when you budget.

Sick pay comes from the CNSS from the fourth day of absence. Maternity leave of 14 weeks is also CNSS funded, but only up to the 6,000 MAD monthly salary ceiling, so confirm whether the EOR tops up the difference.

Dismissal needs a valid reason and a formal procedure, starting with a hearing within eight days of the alleged misconduct. Severance follows a fixed statutory formula, from 96 hours' pay per year of service for the first five years to 240 hours beyond fifteen.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, unused leave, notice and severance. Unfair dismissal damages run to 1.5 months' salary per year of service, capped at 36 months, so keep a documented reason.

Complementary medical cover and a top-up pension, usually through the CIMR, are standard for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add around 21% on top of gross salary, with the pension and short-term benefit elements capped at 6,000 MAD of monthly salary. That is before the EOR fee.

The seniority bonus is the trap. After two years, employees earn a statutory uplift of 5% of basic salary, rising in steps to 25% after 25 years, so build it into multi-year budgets.

Ask whether the EOR sponsors directly or refers to a partner. A partner-model EOR often cannot sponsor at all, and the labour market test and contract approval attach to the sponsor, not to you.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Cross-border transfers generally need prior CNDP authorisation, and that includes payroll data sent back to you.

Ask where payroll data is hosted and who in the partner chain can see it.

Incorporating an SARL here is straightforward, but the running cost is the point: a registered office, a chartered accountant, corporate and professional tax filings, CNSS registration and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.