Employer of Record in Morocco

In Morocco, particularly among foreign businesses, there is a notable trend of hiring employees through an Employer of Record (EoR). This approach is gaining traction for two main reasons. Firstly, the Moroccan Labour Law is complex, prompting especially multinational corporations to engage EoR services. This strategy enables them to avoid bothering with the intricacies of local labour laws while tapping into a rapidly expanding market. Secondly, despite high unemployment rates, Morocco's combination of a growing population, a skilled work­force, a burgeoning economy, robust infrastructure, and favourable policies for investors is increasingly drawing the attention of global companies. The current government is proactively working to decrease unemployment, a goal that could potentially benefit EoRs if successful. A case in point is GoGlobal, a leading EoR, which is expanding into Morocco and other African countries.

  

It's important to note that while specific EoR regulations are absent in Morocco, the concept is generally governed under the umbrella of staff leasing or temporary labour. These two concepts, EoR and temporary labour, are closely linked. Generally, foreign companies without a local presence cannot directly hire Moroccan employees. To circumvent this, they can either send employees on temporary missions, engage individuals as consultants (with the individual registered as self-employed), or use intermediaries like umbrella companies or EoRs to manage employment contracts.

   

However, the Moroccan law is stringent about temporary labour. Valid reasons for temporary employment are limited to scenarios like replacing absent workers, addressing temporary surges in activity, seasonal demands, or inherently temporary tasks. Deviation from these criteria can lead to reclassification of the employment as permanent. Moreover, even without a local entity, companies must adhere to labour leasing regulations.

   

EoRs in Morocco are required to possess a staff leasing license. The absence of this license can lead to severe repercussions for both the EoR and their client, including substantial fines, retrospective payment of social security from the commencement of employment, and the obligation to formally employ the worker. Furthermore, for businesses using EoR services, it's critical to ensure that employment contracts, internal rules, and collective agreements are at least as favourable as those in the Labour Code to avoid invalidation.

   

In summary, utilizing EoRs in Morocco offers a strategic solution for navigating the complex labour laws and leveraging the growing market opportunities. However, the stringent regulations and the necessity for a staff leasing license highlight the need for strict adherence to local laws. The challenge lies in the lack of a clear legal framework for EoRs, but a careful balance of compliance and strategic employment could play a significant role in reducing unemployment in Morocco, aligning with the government's objectives and bolstering the economy.​