What is an open-ended employment contract (CDI) in Morocco?

The open-ended employment contract (CDI) is the normal and general form of the employment relationship in Morocco. Under Article 16 of the Moroccan Labor Code, an employment contract is presumed to be open-ended unless otherwise stipulated.

Unlike the fixed-term contract (CDD), the CDI has no predefined end date. It continues until one of the parties decides to terminate it in compliance with legal rules. It is the contract that offers the greatest stability to Moroccan employees.

Form of the open-ended contract

In Morocco, an open-ended contract may be concluded:

  • In writing: this is the recommended form because it constitutes evidence in the event of a dispute
  • Verbally: a verbal contract is legal but difficult to prove. The employee is then presumed to be on an open-ended contract

Even if the law does not require a written open-ended contract, it is strongly advisable to always request a written contract signed by both parties.

Essential clauses of the open-ended contract

A well-drafted open-ended contract must contain several mandatory and optional items that every employee should check before signing:

Mandatory items

  • Identity of the parties: surname, first name, address of the employee and company name of the employer
  • Hiring date: the exact day the employment relationship begins
  • Position held: precise job title and professional classification
  • Place of work: address of the place where the activity is carried out
  • Remuneration: basic salary, bonuses, benefits in kind
  • Working time: weekly hours (in principle, 44h maximum)
  • Probationary period: its duration and renewal conditions

Optional clauses to watch

  • Non-compete clause: limited in time (2 years max) and geographical area
  • Mobility clause: possibility of transfer to another place of work
  • Confidentiality clause: obligation of professional secrecy
  • Exclusivity clause: prohibition on engaging in another activity

Employee rights under an open-ended contract

The Moroccan Labor Code (Law No. 65-99) grants many rights to employees on open-ended contracts:

Remuneration

  • SMIG: guaranteed minimum wage of 3.111,39 DH/month (since July 2024)
  • Regular payment: wages must be paid at least twice a month for workers and once a month for employees
  • Overtime: increased by 25% (day) to 100% (night, public holidays)
  • Seniority bonus: 5% after 2 years, 10% after 5 years, 15% after 12 years, 20% after 20 years, 25% after 25 years

Leave

  • Annual leave: 1,5 working days per month of work (18 days/year), 2 days after 5 years
  • Public holidays: 13 paid public holidays per year
  • Sick leave: job maintained for 180 consecutive days
  • Maternity leave: 14 weeks (98 days)
  • Paternity leave: 3 paid days
  • Special leave: marriage (4 days), death (3 days), birth (3 days)

Social protection

  • CNSS: mandatory affiliation from the first day of work
  • AMO: mandatory medical coverage
  • Work accident insurance: covered by the employer

Employer obligations

The employer is required to comply with several obligations toward employees on open-ended contracts:

  • Provide the agreed work under health and safety conditions
  • Pay wages on the agreed date
  • Register the employee with CNSS within 30 days of hiring
  • Comply with the legal working time (44h/week or 2.288h/year)
  • Grant legal leave
  • Issue a work certificate at the end of the contract
  • Respect the employee's dignity (prohibition of harassment)

Probationary period in an open-ended contract

The probationary period allows both parties to test each other. In Morocco, it varies according to the professional category:

| Category | Initial duration | Renewal | |-----------|----------------|----------------| | Managers | 3 months | 3 months (6 months max) | | Employees | 1,5 months | 1,5 months (3 months max) | | Workers | 15 days | 15 days (1 month max) |

During the probationary period, either party may terminate the contract without compensation or notice (except if the probationary period exceeds one week, in which case a 2-day notice period is required).

Termination of the open-ended contract

An open-ended contract may be terminated in several ways:

Employee resignation

The employee may leave their job at any time by respecting a notice period whose duration depends on seniority and category:

  • Managers: 1 month (< 1 year), 2 months (1-5 years), 3 months (> 5 years)
  • Employees: 8 days (< 1 year), 1 month (1-5 years), 2 months (> 5 years)
  • Workers: 8 days (< 1 year), 1 month (1-5 years), 2 months (> 5 years)

Dismissal by the employer

Dismissal must be justified by a valid reason. There are two types:

  • Dismissal for gross misconduct: no compensation or notice (theft, violence, serious misconduct...)
  • Dismissal without gross misconduct: the employee is entitled to notice, severance pay and damages

Severance pay

Calculated based on seniority:

  • 96 hours of wages per year for the first 5 years
  • 144 hours per year from the 6th to the 10th year
  • 192 hours per year from the 11th to the 15th year
  • 240 hours per year beyond 15 years

Points to check before signing an open-ended contract

Before signing your open-ended contract, here is a checklist of items to verify:

  • The net salary matches what was negotiated
  • The duration of the probationary period and renewal conditions
  • The exact job title and description of duties
  • Working hours and the possibility of overtime
  • The non-compete clause (if any): duration, scope and financial compensation
  • Benefits in kind: car, phone, meal vouchers
  • The existence of a complementary mutual or group insurance
  • The applicable collective agreement

If in doubt, do not hesitate to have your contract reviewed by a lawyer specializing in labor law or to consult the labor inspectorate in your city.