Hiring talent in Morocco on your own can be quite a challenge. To make the process easier, employers may want to consider working with an Employer of Record (EOR). Working with an EOR platform, like Borderless, makes hiring efficient, streamlines payroll, and guarantees compliance.
This article will guide you through the reasons and benefits of using an EOR to hire employees in Morocco.
Why Hire Talent from Morocco?
As one of Africa’s largest economies, Morocco has become very popular for employers looking to recruit global talent. While Morocco’s geographic location — close to Europe with connections to the rest of Africa — is advantageous, there are other reasons why companies are hiring employees from Morocco.
Additionally, the cost of hiring employees in Morocco is lower than in North America and the majority of Europe. Despite the lower cost, Morocco has a talented workforce. The country has quickly progressed and grown in several industries, especially technology and communications. These reasons combined have made Morocco a destination for talent that spans across continents.
How to Legally Hire Employees in Morocco
For employers looking to hire talent from Morocco, there are three primary ways to do so:
- Hiring them as an independent contractor
- Setting up a local entity,
- Going through an Employer of Record (EOR).
Hiring independent contractors in Morocco is common, but it often comes with the risk of misclassification. Setting up a local entity is a lengthy and complex process that requires local expertise and knowing the ever-changing labor laws and regulations.
However, an Employer of Record already has a local legal entity in place, creating a seamless, streamlined hiring process. Aside from having a legal entity in place already, it also provides a legal framework. When hiring an employee becomes this easy, you’re able to focus on creating a positive working relationship and environment with your employees.
What Does an Employer of Record Do?
Essentially, an EOR specializes in employing people on behalf of the company. EORs take care of payroll, taxes, and benefits, and ensure that the company and the employee are fully compliant with all legal regulations and labor laws.
Using an EOR will significantly minimize the paperwork and processes associated with hiring employees from Morocco. Instead of businesses managing payroll and administrative tasks, the EOR takes care of them. Other responsibilities of an EOR include tracking paid time off, and sick leave, adhering to tax obligations, and drawing up compliant contracts.
Contracts and Documentation
Employment contracts in Morocco have specific information required. For instance, contracts in Morocco must be in French and can be translated to English, and must include the employees’ name, remuneration, position, working hours, trial period, paid time off, and professional obligations.
An EOR will handle the tedious administrative work involved in preparing contracts and collecting documentation.
Insurance and Benefits
Using an EOR to hire employees in Morocco will ensure that all employees have proper insurance coverage and the necessary benefits required by Moroccan labor laws. This includes healthcare and unemployment benefits.
An EOR will take care of supplemental benefits as well, like dental, vision, life insurance, and retirement savings plans. Offering supplemental benefits is an excellent way to appeal to new employees and keep them long-term.
Paid Time Off, Leave, and Public Holidays
Employees in Morocco are entitled to 18 days of paid annual time off. The maximum paid time off for an employee is 30 days. Female employees are entitled to 98 days of maternity leave, and male employees are entitled to 3 days of paternity leave. As an employer, it can be challenging to keep track of these. Using an EOR will track all paid time off, types of leave, and the corresponding payments.
Morocco observes 13 public holidays, ranging from religious holidays to cultural celebrations.
- January 11: Anniversary of the Independence Manifesto
- April 22: Eid al-Fitr
- May 1: Labor Day
- June 29: Eid al-Adha
- July 19: Hijri New Year
- July 30: Feast of the Throne
- August 14: Anniversary of the Recovery Oued Ed-Dahab
- August 20: Revolution Day
- August 21: Youth Day
- September 27: Prophet Muhammad’s Birthday
- November 6: Anniversary of the Green March
- November 18: Independence Day
Tax Obligations
Employers in Morocco are required to pay taxes and social security contributions. These contributions include pension insurance, family benefits, health insurance, maternity benefits, unemployment insurance, and professional training tax. Taxes are often the most exhausting and complex chore when hiring employees in Morocco. Fortunately, an EOR handles all tax obligations and payments to remain compliant with Moroccan tax regulations.
Employer Responsibilities
While an EOR takes care of all legal and HR procedures, like contracts, payroll, background checks, onboarding, and taxes, the employer also has some responsibilities. The employer is responsible for hiring local candidates; which includes managing recruitment and interviewing. Once the employee is onboarded, it’s the employer’s responsibility to maintain the subordinate working relationship.
It’s also up to the employer to be aware of the working culture in Morocco. Doing so will create a positive and welcoming work environment that encourages clear communication and inclusivity.
Advantages of Using an Employer of Record
Using an EOR in Morocco will save time, reduce costs, and minimize compliance risks. Setting up an entity in a foreign country comes with a lot of stress and red tape. An EOR is already set up to hire employees abroad, making it a seamless and efficient process for employees and employers alike.
EORs have access to local knowledge and advisors with extensive experience in Morocco. They’re equipped to work through intricate HR processes, laws, and regulations to ensure strict compliance. This way, employers won’t need to worry about any potential compliance and legal issues, when hiring from Morocco.
Other than minimizing the stress of hiring globally, working with an EOR is cost-saving and ensures a positive employee experience with streamlined HR support.
Choosing the Right Employer of Record
When it comes to choosing the right EOR, employers must do their due diligence to find the right partner. Employers should consider various factors, such as the following:
- Experience and expertise: When working with an EOR in Morocco, you want to make sure they have local knowledge of employment laws and experience in the country. Working with an EOR with a positive reputation in Morocco ensures compliance.
- Range of services: Keep in mind the range of services offered by EORs and see if it’s right for you. Look for different services related to hiring staff, like administering benefits, filing taxes, compliance and governance, and legal support.
- Data security: In a remote work environment, keeping systems secure and protecting intellectual property is vital. When choosing an EOR vendor, make sure they have a specific agreement that outlines the ways they aim to keep sensitive information secure.
Borderless — The EOR For You
If you’re looking to hire an employee in Morocco, an EOR is the right solution. With Borderless, we make the hiring process a breeze. While you connect with your employees, we’ll do the heavy lifting to guarantee compliance and make hiring a seamless, stress-free process. Our platform offers a wide range of services with extensive local expertise and knowledge.
Book a demo to see how we can streamline hiring employees from Morocco.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
