Internal Regulations of Companies in Morocco

Key takeaways: Internal regulations are mandatory for any company employing at least 10 workers in Morocco (Art.138 of the Labour Code). They set out the rules for work organisation, hiring and dismissal conditions, disciplinary provisions, health and safety measures. Their drafting requires consultation with employee representatives and communication to the labour inspector. Disciplinary sanctions are progressive: warning, reprimand, suspension, transfer, then dismissal.

Legal Framework: Articles 138 to 142 of the Labour Code

Internal regulations are governed by Articles 138 to 142 of Law 65-99 (the Labour Code). Article 138 requires any employer habitually employing at least 10 workers to establish internal regulations within two years of opening the business or establishment.

This document has a dual nature: it is both a unilateral act of the employer and a document subject to labour administration oversight. It may not contain provisions contrary to legislation, collective agreements or the fundamental rights of employees.

Mandatory Content of Internal Regulations

General Provisions (Art.139)

Article 139 of the Labour Code lists the mandatory contents of internal regulations:

Hiring conditions: recruitment procedures, probationary period, documents to provide
Dismissal procedures: internal procedure, notice period, formalities
Leave and absences: annual leave, special leave, authorised and unauthorised absences
Disciplinary provisions: scale of sanctions, disciplinary procedure
Health and safety: prevention rules, protective equipment, safety instructions
Work organisation: working hours, weekly rest, working conditions

Recommended Clauses

Beyond the mandatory provisions, it is recommended to include:

Rules on the use of IT tools and social media
Provisions on moral and sexual harassment (Art.40 of the Labour Code)
Confidentiality and data protection rules
Whistleblowing and reporting procedures

Drafting Procedure

Consultation with Employee Representatives

Drafting internal regulations requires consultation with employee delegates and, where applicable, the works council (for companies with 50 or more employees). This consultation is a substantive formality: internal regulations adopted without this consultation may be challenged.

Employee representatives issue a consultative opinion. The employer is not bound to follow this opinion but must be able to demonstrate that consultation took place.

Communication to the Labour Inspector

Article 138 of the Labour Code provides that internal regulations must be communicated to the competent labour inspector. The inspector verifies the document’s compliance with legal and regulatory provisions. They may request the amendment or removal of clauses that contravene the law.

Display and Publicity

Internal regulations must be displayed in a location regularly frequented by employees and in the premises where hiring takes place. Display is a condition for enforceability against employees: regulations that are not displayed cannot be invoked against an employee.

Progressive Disciplinary Sanctions

The Scale of Sanctions (Art.37)

Article 37 of the Labour Code establishes a progressive scale of disciplinary sanctions:

Warning: the lightest sanction, notified in writing to the employee
First reprimand: formal reprimand for repeated misconduct
Second reprimand or suspension for a maximum of 8 days: temporary suspension of the employment contract without pay
Third reprimand or transfer to another department or establishment: disciplinary transfer, where applicable after consultation with employee delegates
Dismissal: termination of the contract for serious misconduct, the ultimate sanction

Disciplinary Procedure Rules

Before imposing a disciplinary sanction, the employer must follow a contradictory procedure:

Employee hearing: the employee must be heard by the employer in the presence of the employee delegate or union representative of their choice, within 8 days of the discovery of the misconduct
Written notification: the sanction must be notified by registered letter with acknowledgement of receipt or by hand delivery against signature
Statement of reasons: the sanction decision must state the grounds justifying the measure

Fundamental Principles

Prohibition of double sanctions: the same misconduct may only give rise to a single disciplinary sanction (“non bis in idem” principle)
Limitation period for misconduct: the employer has a deadline to initiate disciplinary proceedings from the date of learning of the facts
Proportionality: the sanction must be proportionate to the seriousness of the misconduct

Prohibited Clauses

Internal regulations may not contain provisions that are:

Discriminatory: based on race, colour, sex, disability, marital status, religion, political opinion, union membership, social origin or nationality (Art.9 of the Labour Code)
Restricting fundamental rights: trade union freedom, right to strike, right to privacy
Contrary to collective agreements: internal regulations may not derogate from more favourable provisions of an applicable collective agreement
Undermining employee dignity: systematic searches, excessive surveillance, disproportionate restrictions

Penalties for Non-Compliance

The absence of internal regulations in a company with 10 or more employees constitutes a violation of the Labour Code. The employer is liable to fines provided by law. Furthermore, the absence of internal regulations may weaken the employer’s position in disciplinary disputes.

FAQ

Are internal regulations mandatory for all companies in Morocco?

No, internal regulations are only mandatory for companies habitually employing at least 10 workers (Art.138 of the Labour Code). Companies with fewer than 10 employees may nevertheless establish them voluntarily.

What disciplinary sanctions does the Moroccan Labour Code provide?

The Labour Code provides a progressive scale of sanctions: warning, first reprimand, second reprimand or suspension for a maximum of 8 days, third reprimand or transfer, and finally dismissal for serious misconduct (Art.37).

Can an employee be sanctioned without internal regulations?

The absence of internal regulations does not deprive the employer of all disciplinary power, but it considerably weakens their legal position. Sanctions must then be based directly on the provisions of the Labour Code. Compliant internal regulations strengthen the employer’s legal certainty.

How can internal regulations be amended?

Any amendment to internal regulations follows the same procedure as their initial drafting: consultation with employee delegates, communication to the labour inspector and display. Amendments are only enforceable against employees after completion of these formalities.

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Looking to draft or update your internal regulations in compliance with the Labour Code? Our experts help you draft and ensure compliance of your social documents. Contact Upsilon Consulting.

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.

Internal Regulations of Companies in Morocco | Upsilon Consulting