Overview
Morocco’s major source of employment has traditionally been in the agricultural, fishing and forestry sectors, where around 40% of the working population still works. However, growth has been volatile as a result of recurrent drought conditions and unemployment remains high. Many young people are seizing opportunities to leave the agricultural sector to seek careers in more solid areas of the economy.
King Mohammed VI has implemented a number of progressive economic measures which have directly lead to higher employment in all sectors.
Unemployment currently stands at around 10.5% (2005)
Primary industries:
Industry accounts for approximately 15% of Morocco’s employment.
The oil industry plays an important role in Moroccan economy with two oil refineries at Sidi Kacem and at Mohammedia.
Morocco has an active chemicals industry, while being one of the larger players in the African lubricants industry.
Morocco boasts the largest phosphate reserves in the world. In fact Morocco's phosphate reserves are estimated at 110 billion tons, representing three quarters of known world reserves. The export of phosphate and its derivatives accounts for over a quarter of Moroccan exports.
Secondary industries:
Labour-intensive industries, such as Morocco's clothing industry and electronics assembly have grown in the last decade, due to its competitive labour costs and free access to nearby European markets.
Handicrafts are an important industry and craft products, particularly leather goods, are exported throughout the world.
Service industries:
The service industry currently employs around 45% of Morocco’s work force.
Government measures to facilitate foreign investment in Morocco have caused an influx of property purchasers and developers, creating further employment in the construction, legal and real estate sectors. The knock-on effect is increased employment within tourism and related services.
Increased funding in education has, in turn, increased literacy levels, while computer technology creates more posts in the electronics and the service related industries as a whole.
Employee Rights in Morocco
You must have an employment contracts to be an employee in Morocco.
The contract defines the rights and duties of employer and employee. An employer can however change the arrangements in his particular company contract, subject to agreement from the Minister of Labor.
Workers have the right to join together in unions and to strike in defense for their collective interests. Nevertheless, the Inspectorate of Labor endeavors to settle disputes by mediation, to avoid such occurrences.
The working week is limited to a maximum of forty-eight hours, with no more than ten hours worked per day. Every employee is entitled to one day per week of rest and statutory paid holidays.
Salaries and Wages
There are no standard wage controls in Morocco, other than the minimum wage and salaries can be freely agreed between employees and employers.
Apart from agreed pay increases, an indexing system allows the government to raise by decree all wages when the Central Commission for Prices and Wages records an increase of at least 5% in the cost of living.
Salaries must be paid at least once a month.
Health and Safety
Medical services must be provided in every company with more than 50 employees. Employers must provide the services of a doctor or alternatively, they could set up a joint service with other companies to provide the service. This health service is subject to official government inspection.
There are standard safety regulations that must be adhered to. Certain types of work will be considered as dangerous and will be covered by official Labour regulations.
Termination of Employment
Employee dismissal can take place in the following conditions:
- reduction of jobs in the particular branch
- incapacity due to age or insufficient aptitude
- as a disciplinary measure due to a serious offense
Except in the case of a serious offense, the worker is entitled to notice, which varies according to his seniority in the company.
Dismissed workers are also entitled, after a year's service, to social security compensation proportionate to the length of his service with the company.
Social Security
Moroccan social security (La Caisse nationale de Sécurité Sociale or CNSS) is compulsory for all employers and all workers must be registered. The CNSS pays workers’ family allowances and daily allowances in cases of illness, accident or occupational diseases, death, disability as well as pensions.
Foreign workers taking up employment in Morocco participate in the same CNSS system as Moroccan nationals.
Written by
Emma Stephenson