New Labor Decree Clarifies Dismissal Rules for Fixed-Term Contracts in Morocco

This decree was adopted and published in the official journal after 16 years of waiting, recalls l’Économiste. According to Mohamed Emtil, a social arbitrator, Article 33 of the Labor Code states that "the fixed-term employment contract ends at the term set by the contract or by the end of the work that was the subject of the contract". For the expert, the employer can unilaterally terminate the contract before the end of the term, provided that he pays damages to the employee. As for the amount, it is equivalent to the sum of the salaries corresponding to the remaining period of the contract, without the addition of an additional indemnity.

Recalling the issue of damages and interest, Article 33 specifies that they are only due in the event of serious misconduct or proven force majeure. The major case may occur when these three defined criteria are met. These are unpredictability, independence and irresponsibility.

As for Me Kamal Habachi, a business lawyer associated with the HB Law Firm, he appreciated the new labor code in cases where the activity is seasonal. According to the lawyer, the employer is obliged in cases where the duration of the employment contract greatly exceeds the duration of the work to be carried out to transform the fixed-term contract into an open-ended contract.

"The employer cannot renew the contract for an additional period with the same person, unless he intends to reclassify the fixed-term contract as an open-ended contract," he warns. According to him, the worker is often favored before the judge to the detriment of his employer. "This is one of the flaws in the law that investors fear the most. Especially since the seasonal nature of certain activities is exacerbated by the case of force majeure," he lamented.