Guide · Employment law

Unfair dismissal in Morocco: your rights and how compensation is calculated

The Labour Code (Law No. 65-99) protects employees against dismissal without a valid reason and requires the employer to follow a strict procedure. When these rules are not followed, the dismissal is unfair and gives rise to several cumulative indemnities.

By Maître Mouad Lahfaia, lawyer at the Rabat Bar · Updated 1 September 2026 · 7 min read

When is a dismissal unfair?

  • No valid reason relating to the employee's capability, conduct or the needs of the business (Article 35).
  • Serious misconduct that is not proven or not provided for in Article 39.
  • Failure to follow the procedure: no hearing within eight days, no written record, late notification (Articles 62 and 63).
  • Dismissal linked to trade union activity, a complaint or discrimination (Article 36).
  • Economic dismissal without administrative authorisation (Articles 66 and 67).

Indemnities due

  1. Payment in lieu of notice: one to three months depending on length of service and job category (Decree No. 2-04-469).
  2. Severance pay (Articles 52 and 53): 96 hours of salary per year for the first five years, 144 hours from the 6th to the 10th year, 192 hours from the 11th to the 15th year, 240 hours thereafter, calculated on the average of the last 52 weeks.
  3. Damages for unfair dismissal (Article 41): one and a half months' salary per year or part of a year of service, capped at 36 months.
  4. Job loss allowance from the CNSS, subject to affiliation conditions.
  5. Salary arrears, unused paid leave, overtime.

Proceedings before the court

The employee may first refer the matter to the labour inspectorate for an attempt at conciliation. If no agreement is reached, a petition is filed with the social section of the Court of First Instance; the procedure is free of charge for the employee and representation by a lawyer is strongly recommended. The time limit for bringing an action is two years (Article 395).

This guide is provided for general information by Maître Lahfaia Law Firm, Rabat. It is no substitute for advice tailored to your situation; the rules and deadlines mentioned may change.

FAQ

Questions related to this guide

Can an employer dismiss an employee without a prior meeting?

Not for a disciplinary reason: hearing the employee within eight days is mandatory (Article 62). Failing to do so makes the dismissal unfair, regardless of whether the misconduct actually occurred.

Is an employee on a fixed-term contract dismissed before its end entitled to compensation?

Yes: early termination that is not justified by serious misconduct entitles the employee to damages equal to the salary still due until the end of the contract (Article 33).

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