Wrongful Dismissal:
Legal Protections Under the Moroccan Labor Code

In Morocco, an employee cannot be dismissed at the employer's discretion. The Labor Code (Dahir n° 1.03.194 of September 11, 2003) establishes strict procedural and substantive requirements. Failure to comply with either renders the dismissal wrongful (abusif) and entitles the employee to substantial compensation.

When is a Dismissal Wrongful?

A dismissal is wrongful in two distinct situations:

• Lack of valid reason: The employer has no genuine, serious, and documented professional misconduct or valid economic grounds. Vague allegations or undocumented motivations are insufficient.
• Procedural violation: Even if the underlying reason is valid, failure to comply with the mandatory disciplinary procedure renders the dismissal wrongful regardless of the reason's merit.

The Mandatory Disciplinary Procedure

Before any dismissal for misconduct, the Labor Code imposes a strict chronological sequence:

1. Discovery of the fault — the employer learns of the employee's misconduct.
2. Within 8 days: The employee must be summoned to a formal disciplinary hearing (audition préalable). The summons must be in writing and state the purpose.
3. The hearing: The employee presents their defense. They may be assisted by a delegate (délégué du personnel).
4. Within 48 hours of the hearing: The dismissal must be formally notified to the employee in writing, with the specific reasons stated.

The Critical 90-Day Deadline

An employee who believes their dismissal is wrongful has 90 days from receipt of the dismissal decision to bring the case before the court (article 65 of the Labor Code). After this deadline, all legal claims are extinguished.

The 90-day count begins from the date on the dismissal letter's acknowledgment of receipt. This is one of the shortest prescription periods in Moroccan law.

Caution: If the employee signed a "balance of account" (reçu pour solde de tout compte), they have 60 days to revoke it by registered letter. After this, the signature is considered final.

Calculating Compensation for Wrongful Dismissal

When a dismissal is found wrongful, the court awards:

1. Legal Severance Pay (Indemnité de Licenciement)

Due to all employees with at least 6 months of service, regardless of whether the dismissal is wrongful or valid (for personal reasons). Calculated as follows:

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

Based on the average of the last 52 weeks of salary.

2. Damages for Wrongful Dismissal (Dommages-Intérêts)

In addition to severance pay, if the dismissal is found wrongful, the court adds damages calculated at: 1.5 months of salary per year of service, capped at 36 months of salary.

3. Notice Pay (Indemnité de Préavis)

Unless the dismissal is for serious misconduct (faute grave), the employee is entitled to a notice period, or to pay in lieu of notice, set by Decree No. 2.04.469: for executives, 1 month (under 1 year of service), 2 months (1 to 5 years) and 3 months (over 5 years); for employees and workers, 8 days, 1 month and 2 months. The contract, a collective agreement or the internal regulations may provide for longer periods.

The Role of the Labor Inspector in Conciliation

Before going to court, the Labor Code offers a preliminary conciliation procedure before the Labor Inspector (inspecteur du travail). It is optional, but often useful to reach a quick settlement.

If conciliation succeeds, the signed settlement is final and closes the dispute. Otherwise, the attorney files a claim before the social chamber of the Court of First Instance.

Key Documents to Preserve

• The dismissal letter (original, with acknowledgment of receipt)
• Employment contract and all annexes
• Last 12 payslips (bulletins de paie)
• Any prior warnings, disciplinary letters, or employer communications
• The balance of account (solde de tout compte) if signed