The Fixed-Term Contract (CDD) is an employment contract whose end date is set at the time it is concluded. In Morocco, it is governed by Articles 16 to 18 of the Labor Code (Law No. 65-99).

Unlike in many countries, the CDD in Morocco may only be used in specific and limited cases. Moroccan lawmakers consider the permanent contract (CDI) to be the rule and the CDD the exception.

Requirement for a written contract

The CDD must be evidenced in writing. Otherwise, it is automatically reclassified as a permanent contract (CDI). The contract must clearly state:

  • The precise duration of the contract or the event that marks its end
  • The reason for using a CDD
  • The identity of the parties and the nature of the position
  • The agreed remuneration

Cases in which a CDD may be used

The Moroccan Labor Code authorizes the use of a CDD only in the following situations:

Replacing an absent employee

The employer may use a CDD to replace an employee whose contract is temporarily suspended (illness, maternity leave, unpaid leave), except in the event of a strike.

Temporary increase in activity

In the event of an exceptional increase in workload, one-off orders or seasonal work, the company may hire on a CDD.

Opening of a company or establishment

When a new company is created or a new product/activity is launched, a CDD is permitted for a maximum duration of one year, renewable only once.

Seasonal employment

Sectors such as agriculture, tourism or agrifood may use seasonal CDDs.

Duration and renewal of the CDD

The duration rules vary according to the reason for the CDD:

| Reason | Maximum duration | Renewal | |-------|----------------|----------------| | Company opening | 1 year | 1 time (2 years max) | | Increase in activity | As needed | Limited to the duration of the project | | Replacement | Duration of the absence | Ends when the employee returns | | Seasonal | Duration of the season | Each season |

Reclassification as a permanent contract (CDI)

The CDD is automatically reclassified as a CDI in the following cases:

  • Absence of a written contract
  • Continuation of the employment relationship after the CDD expires
  • Exceeding the legal maximum duration
  • A reason for use not provided for by law
  • Abusive or successive renewals without interruption

Reclassification is decided by the court and gives the employee all rights related to a CDI, including severance pay.

Employee rights under a CDD

An employee on a CDD enjoys the same rights as an employee on a CDI:

  • Equal pay: for equal work, an employee on a CDD must receive the same remuneration as a CDI employee in the same position
  • Paid leave: 1.5 days per month worked (calculated pro rata)
  • CNSS affiliation: from the first day of work
  • AMO coverage: compulsory health insurance
  • Working conditions: identical hours, rest and safety
  • Probationary period: proportional to the duration of the contract

Probationary period in a CDD

For CDDs, the probationary period may not exceed:

  • CDD of less than 6 months: 1 day per week of work, not exceeding 2 weeks
  • CDD of more than 6 months: 1 month maximum

End of the CDD and compensation

The CDD normally ends on the agreed date or upon completion of the purpose for which it was concluded.

Normal end of the CDD

When the CDD expires, the contract terminates automatically without the employer needing to give notice or justify a reason. The employee receives:

  • Their final salary and final settlement
  • Compensatory payment for untaken paid leave
  • A work certificate
  • A CNSS certificate for unemployment benefits

Early termination of the CDD

Termination before the end date is possible only in the following cases:

  • Mutual agreement: both parties agree to end the contract
  • Gross misconduct: by either party
  • Force majeure: an unforeseeable and irresistible event

If the employer terminates the CDD without justification, they must pay damages corresponding at least to the salaries remaining until the scheduled end of the contract.

If the employee terminates without valid reason, they may be ordered to compensate the employer for the loss suffered.

CDD vs CDI: which contract to choose?

For a job candidate in Morocco, here are the points of comparison:

| Criterion | CDI | CDD | |---------|-----|-----| | Stability | Maximum | Limited to the duration | | Bank credit | Easy to obtain | Difficult | | Severance pay | Yes | No (unless reclassified) | | Probationary period | Longer | Shorter | | Termination by the employee | Notice required | Prohibited unless agreed | | Social rights | Identical | Identical |

Practical advice

If you are hired on a CDD in Morocco:

  • Always insist on a written and signed contract in two copies
  • Check that the reason for using the CDD is clearly stated
  • Note the end date and renewal conditions
  • Keep your payslips as proof of employment
  • If your CDD is renewed more than 2 times or exceeds the legal duration, consult a lawyer for a possible reclassification as a CDI
  • Request your work certificate and final settlement at the end of the contract

In the event of a dispute, the labor inspectorate and the social court have jurisdiction to rule on the matter.