Key takeaways: Every employee with 6 continuous months of service with the same employer is entitled to paid annual leave of 1.5 working days per month (18 days/year). Minor employees receive 2 days per month (24 days/year). Seniority bonuses apply, and a compensatory allowance is due upon termination. Non-compliance exposes the employer to fines of 300 to 500 MAD per employee.
Eligibility for Annual Leave
The right to paid annual leave is governed by Articles 231 to 268 of the Labour Code (Law 65-99). To qualify, the employee must have completed at least six months of continuous service with the same employer (Art. 231).
The reference period runs from 1 July of the previous year to 30 June of the current year. Absences due to illness (up to 180 days), work-related accidents, maternity leave, and public holidays are treated as effective working days.
Legal Duration of Annual Leave
General rule: 1.5 working days per month
Under Article 232 of the Labour Code, annual leave is set at 1.5 working days per month of service, i.e. 18 working days per year.
Working days include all days of the week except the weekly rest day (usually Sunday) and legal public holidays.
Minor employees: 2 days per month
Employees under 18 years of age are entitled to an increased duration of 2 working days per month of service, i.e. 24 working days per year (Art. 232).
Seniority bonus
Article 232 provides for additional leave based on the employee’s seniority:
| Seniority | Additional days |
|---|---|
| 5 to 10 years | + 1.5 days |
| 10 to 15 years | + 3 days |
| 15 to 20 years | + 4.5 days |
| 20 to 25 years | + 6 days |
| Over 25 years | + 7.5 days |
The total leave duration, including bonuses, may not exceed 18 additional days beyond the base entitlement.
Splitting and Accumulation of Leave
Splitting leave
Article 240 of the Labour Code allows splitting of annual leave by mutual agreement between employer and employee. However, the continuous leave period must not be reduced to fewer than 12 consecutive working days, including two weekly rest days.
Accumulation over two years
The employee may, in agreement with the employer, accumulate leave over two consecutive years (Art. 240). Beyond this period, unused leave entitlement is forfeited, unless a more favourable collective agreement applies.
Leave Period and Organisation
The employer sets departure dates after consulting staff representatives, taking into account the employee’s family situation and seniority. The departure schedule must be communicated at least 30 days before the effective leave date.
During leave, the employee receives a leave allowance equal to the remuneration they would have received had they worked, calculated on the basis of average wages over the 12 months preceding the leave.
Compensatory Leave Allowance
Upon termination of contract
Article 251 of the Labour Code provides for payment of a compensatory leave allowance when the employment contract ends before the employee has used all accrued leave.
This allowance is due regardless of the reason for termination: resignation, dismissal, end of fixed-term contract, or death of the employee (in which case it is paid to the heirs).
Calculation method
The compensatory allowance is calculated as follows:
Allowance = (1/12) of total remuneration earned during the reference period
It includes base salary, bonuses and benefits in kind. The calculation is pro-rated according to months of service completed.
Public Holidays in Morocco
Article 217 of the Labour Code sets out the list of paid public holidays in Morocco, which are not deducted from annual leave:
- 1 January (New Year’s Day)
- 11 January (Independence Manifesto)
- 1 May (Labour Day)
- 30 July (Throne Day)
- 14 August (Oued Ed-Dahab Allegiance)
- 20 August (Revolution of the King and the People)
- 21 August (Youth Day)
- 6 November (Green March)
- 18 November (Independence Day)
- Religious holidays (Eid Al Fitr, Eid Al Adha, 1st Muharram, Eid Al Mawlid Annabaoui)
Penalties for Non-Compliance
Article 267 of the Labour Code provides for penalties in case of violation of annual leave provisions:
- Fine of 300 to 500 MAD per affected employee
- Maximum: 20,000 MAD in case of repeat offence
The labour inspector is authorised to record violations and issue official reports.
FAQ
Can an employee work during annual leave?
No. Article 243 prohibits the employee from performing paid work during annual leave. Breach of this prohibition may result in loss of the leave allowance.
Is annual leave transferable from one employer to another?
No, the right to leave is linked to seniority with a single employer. When changing employers, the employee receives the compensatory allowance and begins accruing new entitlements with the new employer.
Do sick days reduce annual leave?
No, duly justified absences for illness (up to 180 days) are treated as effective working days for the purpose of calculating annual leave.
Can leave be carried forward indefinitely?
No. Accumulation is limited to two consecutive years (Art. 240). Beyond this, the entitlement is lost unless a collective agreement provides otherwise.
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Need assistance managing your employees’ leave entitlements? The chartered accountants at Upsilon Consulting help you calculate leave rights, manage payroll and ensure compliance with your legal obligations.
This article is written by the team of chartered accountants at Upsilon Consulting, a firm registered with the Order of Chartered Accountants (OEC) of Morocco.
