Morocco Pushes Spain to Reform Labor Laws for Cross-Border Workers in Ceuta and Melilla

"Rabat will demand that the Spanish Executive regulate the situation of the 8,500 nationals employed in Ceuta and Melilla who, in many cases, do not have an employment contract, contribute to social security but do not receive unemployment benefits, are laid off without compensation or are not allowed to have paid leave in the event of a work accident," reports El Español.

Cross-border workers do not hold a residence permit. They are only entitled to an entry and exit permit to come to work in the autonomous cities during the day and return home in the evening. "Since 2011, the renewal of the cross-border card is annual and for a type of work. If you get fired or the company closes, you won’t be able to work anywhere else," explains Marouan Chakib, spokesperson for the cross-border workers in the Tetouan region and member of the Moroccan Labor Union (UMT).

The cross-border workers pay the non-resident income tax (IRNR) which is deducted from their salary at a rate of 24%. Morocco closed the Ceuta border post in 2019 through which contraband goods were passing to reach Fnideq. According to estimates by Moroccan customs, the traffic generated between six and eight billion dirhams (between 550 and 750 million euros). In addition, an economic and social development program, with a budget of around 400 million dirhams (more than 36 million euros), announced in 2020, plans the creation of free zones in Fnideq and Tetouan.