HIRING FOREIGN EMPLOYEES AND RESIDENCE PROCESS IN MOROCCO

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Introduction: legal framework

Companies in Morocco that wish to hire foreign employees must follow a specific procedure that is regulated by the Moroccan labor code law no 65-99 (The “Labor Code”) as promulgated by Dahir no. 1-03-194 of September 11, 2003, in particular Chapter 5, Article 516, which stipulates that “any employer wishing to recruit a foreign employee must obtain authorization from the government authority responsible for labor. This authorization is granted in the form of a visa affixed to the employment contract”.

The process of hiring foreign employees in Morocco is regulated by the Labor Code and by the following legal dispositions:[1]

  • Order of the Minister of Employment n° 350-05 of February 9, 2005 establishing the foreign employment contract;
  • Order of the Minister of Employment n° 1391-05 of November 25, 2005 ;
  • Joint note on the implementation of a specific procedure for granting residence permits to foreign investors and rare skills (September 2015) by the ministries of Interieur, Employment, Industry with the-DGSN-ANAPEC-AMDI
  • Resolution N°04 of the ANAPEC Board of Directors of 29/06/2016 and its amendment of 30/06/2017.

This article outlines in the first part (I) the process of hiring foreign employees in Morocco with focus on the procedure of acquiring the work certificates from the relevant government agency in charge of recruitment of foreign employees and in second part (II) the process of acquiring the employment contract from the ministry of labor, and in the third part (III) the professions and nationalities that are exempt from the above-mentioned recruitment formalities to conclude with the residency process.

Part I. Procedure for granting activity certificates to foreign employees in Morocco

The process for granting the activity certificates is administered by the National Agency for the Promotion of Employment and Skills (“Anapec”). It is a process that formally takes 30 days upon submission of the relevant documents by the employer with acknowledgement of receipt. However, in practice, it can take up to 60 days for the Anapec to study the file and call for tender in the employment market if there’s any eligible local candidate for the position.

Documents to be deposited at the head office (DIRECTION GENERALE. 4, Lotissement La Colline Entree B Sidi Maarouf Bp 188, Casablanc, Casablanca 20100):

a.          Letter of request for activity certificate addressed by the company to the ANAPEC General Manager

b.          Employer’s identification sheet in accordance with the model provided by ANAPEC

c.           Job description sheet in accordance with the model provided by ANAPEC

d.          Sample advertisement in accordance with the template

e.           The foreign employee’s curriculum vitae

f.           Copies of diplomas

g.          Copies of work certificates

h.          A copy of the company’s Trade Register (Model J)

i.           A copy of the “identity” page of the foreign employee’s passport.

Once the activity certificate is ready, Anapec invoices the company 5,000MAD.

However, it should be noted in the case of the following outcomes:[2]

Firstly, if one or more profiles exist, the list of shortlisted candidates is forwarded to the company for interview and selection;

And if the company decides that the profile does not exist among the candidates, a report is drawn up and forwarded to the Ministry of employment.

Part II. procedure for granting the foreign workers contract

Upon receipt of the positive work certificate of activate from the Anapec, the next steps to obtain the employment contract from the ministry of labor:

  1. The company must register on the Taechir website (https://taechir.travail.gov.ma:4433/admin/login)
  2. Request a foreign employment contract[3] and submit all related information
  3. Print out the edited contract (the company can add a small section directly related to the position, as it’s a very generic contract, with only 3 about sections), sign and stamp it
  4. The company representative must go to the Taechir office (in Hay Mohammedi, near the Ain sebaa-hay mohammedi labor inspectorate) to file the contract and obtain the work visa.

The file to submit for the employment contract to the ministry of labor must be as follows:

A. for a first-time employment contract

 The employer must attach the following documents to the contract:

  • Printout of the request for visa of the employment contract in (2) two copies, signed by the foreign employee concerned ;
  • Printout of the foreign employee’s employment contract in (5) five original copies
  • Diplomas obtained by the employee and his/her technical qualifications
  • Copies of first pages of passport
  • Certificate issued by Anapec stating that the skills required for the position in question are not available in Morocco.

B. For the renewal of an employment contract

  • Printout of the request for visa of the employment contract in (2) two copies, signed by the foreign employee concerned ;
  • Printout of the foreign employee’s employment contract in (5) five original copies
  • Certificate of contribution to the social security of the employee for the last 3 months
  • Copy of the residence permit in Morocco
  • Certificate issued by Anapec stating that the skills required for the position in question are not available in Morocco.

The process to obtain the employment contract from the ministry of labor takes from ten (10) days to one month.

It should be noted that in practice, together the procedure to obtain the work certificate from the Anapec and the employment contract from the ministry of labor can take up to six (6) months.

Part III. Professions that are exempt from the Anapec formalities

However, it should be noted that this ANAPEC certificate is not required for certain categories of foreign employees, notably:

  • Foreigners born in Morocco or to a Moroccan mother;
  • Foreigners residing in Morocco continuously for at least six months;
  • Foreigners married to Moroccan women and foreigners married to Moroccan men;
  • Partners and shareholders in a company’s capital;
  • Persons seconded to foreign institutions for a fixed period;
  • Delegates working in a cooperative capacity for a period not exceeding six months;
  • Foreign sports trainers and players, subject to authorization by the authorities in charge of the sports sector;
  • Foreign artists, authorized by the Direction Générale de la Sûreté Nationale (the « DGSN »);
  • Political refugees and stateless persons.

What happens upon receipt of the employment contract to apply for the residence permit?

Normally, what happens is that the employee then makes a request for a residence permit from the relevant administration with submission of a particular set of documents. To acquire the residence permit, it takes about three (3) weeks to receive the temporary ID in form of a receipt until the finale residence card is offered in one (1) to two (2) months.

The following are the set of documents submitted to obtain the residence:[4]

  • Yellow (2) and white (3) forms given by the administration
  • 8 passport photos (3.5*4.5)
  • 2 certified copies of passport (identity page and page with last stamp and entry date into Morocco)
  • Lease contract in your name with legalized signature and certified photocopy.
  • Copy of utility bill
  • Certified copy of family record book (all pages)
  • Birth certificate
  • Medical certificate
  • Work contract and certified photocopy
  • Criminal record obtained from the ministry of justice

The process of hiring foreign employees can present its own challenges for companies that would like to expedite the onboarding processes of their new foreign recruits. Therefore, Westfield is available to assist in the necessary formalities to acquire the work certificate with the Anapec, through to obtaining the employment contract with the ministry of labor and advising the expatriates with their cumbersome visa needs. 

Our firm, WESTFIELD, is one of Morocco’s leading national and international business law firms. Our team is dedicated to serving our clients in a full range of Moroccan legal matters as the above mentioned.

Kakoma Chinyama – Legal Associate  – Westfield Morocco

References

  1. The Labor Code, law 65-99
  2. Anapec information document headlined «procedure d’octroi de l’attestation d’activite en faveur des salaries etrangers au maroc »
  3. Article by avocat Jawri Maha of 26 May 2022, headlined “L’embauche des étrangers au Maroc”
  4. Order of the Minister of Employment n° 350-05 of February 9, 2005
  5. https://www.rabataccueil.org/fr/page.php?choix=86

[1] Anapec information document headlined «procedure d’octroi de l’attestation d’activite en faveur des salaries etrangers au maroc »

[2] Article by avocat Jawri Maha of 26 May 2022, headlined “L’embauche des étrangers au Maroc”

[3] Order of the Minister of Employment n° 350-05 of February 9, 2005

[4] https://www.rabataccueil.org/fr/page.php?choix=86

Bill amending the law on SA in Morocco

SA et SAS modifications législatifs

The General Secretariat of the Government has published a bill to amend the law on limited companies by introducing new developments including:

  1. introducing gender parity to supervisory boards and boards of directors and seeking gender balance within the framework of SA's supervisory and management bodies;

– both boards must have at least 30% members (administrator or supervisor) of each gender. This rate rises to 40% when the company is public offering;                                          

– where the board of directors or supervisory board has more than eight members, the difference between members of each gender must not exceed two directors or supervisors.

The draft legislation also provides that in the public offering company, it is mandatory to appoint at least one representative of each sex to the technical committees under section 51 of Act 17-95.

2.Introducing prior approval of agreements regulated by AGO/AGE, in addition to the Board of Directors, where the agreement involves more than 5% of the company's assets;

3. amendment of the provisions relating to the simplified limited company with the introduction of the SAS with single partner and several measures aimed at simplifying and introducing more flexibility for the SAS which could become a major legal instrument of Moroccan corporate law:

– members freely agree on the organization and functioning of society (L. 17-95, art. 425, al. 3), the general rules for limited companies applying to the SAS only to the extent that they are compatible with the provisions governing the SAS (L. 17-95, art. 425, al. 4) ;

– no minimum capital is required in the SAS (L. 17-95, art. 427) ;

– even if the company must have a president, initially appointed in the statutes, those statutes freely set the conditions under which the company is governed (L. 17-95, art. 432).

The draft bill goes even further in that flexibility.

Indeed, if today the SAS can only have companies as partners (L. 17-95, art. 425, al. 1), which, under Article 426, must have a capital of at least two million dirhams or the counter-value of that sum in foreign currency, the draft law innovates (art. 1 of the draft): from now on, any person, natural or legal, may be a member of SAS and section 426 will be repealed (art. 3 of the draft).

In addition, like the SARL, the SAS may have a single partner, to whom the prerogatives recognized at the general meeting are devolved.

The proportion of the subscribed capital to be released, now corresponding to the totality (art. 427 al. 2), with the project, passes to a quarter of the promised capital (art. 1 of the draft).

Only hardening (if one can consider it as such), with the draft (art. 1): The SAS must have an auditor when its turnover exceeds a threshold set by regulation, whereas, as the legislation stands, the obligation is not express (L. 17-95, art. 433).

4.added persons who are conflicted under regulated agreements (DGD, shareholder;

5.obligation of at least two (2) board meetings per year; And

Thus on the question of parity and changes to the SAS regime we can speak of a revolutionary bill that should allow Morocco to establish its place in the international rankings of investor-friendly countries.

Please find the link to the so-called project below:

http://www.sgg.gov.ma/portals/0/AvantProjet/204/Avp_loi_19.20.PDF

Establishment of an ad hoc committee to investigate the case of alleged agreements between oil companies

The Royal Cabinet issued a press release on Wednesday, July 29, in which it informed that His Majesty King Mohammed VI decided to set up an ad hoc committee responsible for carrying out the necessary investigations to clarify the situation on the file of alleged agreements between oil companies and to submit to His High Attention a detailed report on the subject as soon as possible.

This press release comes after the receipt of two notes from the President of the Competition Council on "possible agreements between oil companies and the Petroleum Group of Morocco".

In the first note, the president brought to the attention of His Majesty the King, the content of "the decision adopted by the plenary, on Wednesday July 22, by 12 votes for and 1 vote against", to impose a financial penalty an amount of "9% of the annual turnover achieved in Morocco" for the 3 leading distributors and a lower amount for the other companies.

On Tuesday July 28, 2020, His Majesty the King received a second note from the President on the same subject, in which the person concerned informed His Majesty the King of the "amount of the sanctions imposed" on distributors, during the plenary session on July 27. This time, the amount was set at 8% of annual turnover without distinction between companies and without any indication of the distribution of votes.

In addition, the Sovereign also received, on July 28, 2020, a file from several members of the Council in which they noted that "the management of this file was characterized by procedural transgressions and actions on the part of the president. which tarnish the quality and impartiality of the decision taken by the Council ”.

The coordination mission of this ad hoc committee, made up of the two presidents of the chambers of Parliament, the president of the Constitutional Court, the president of the Court of Auditors, the Wali Bank Al-Maghrib and the president of the Instance of probity , prevention and the fight against corruption, will be carried out by the Secretary General of the Government.

Source: Ministry of Culture, Youth and Sports, Department of Communication, Royal Activities, "Agreement between oil companies: His Majesty the King sets up a commission to investigate the file of cartels", July 29. 2020: http://www.maroc.ma/fr/activites-royales/entente-entre-petroliers-sa-majeste-le-roi-constitue-une-commission-pour-enqueter

Publication of Law No. 42.20 amending Decree-Law No. 2.20.292 of March 23, 2020 relating to the application of the provisions relating to the state of health emergency and the measures for its declaration

Law No. 42.20 amending Decree-Law No. 2.20.292 of 28 Rejeb 1441 (23 March 2020) relating to the application of the provisions relating to the state of health emergency and the measures of its declaration was published in Official Bulletin n ° 6903 of July 27, 2020.

This law modifies and replaces the provisions of article 6 of the aforementioned Decree-Law n ° 2.20.292 which states that the government may decide, during the period of the declared state of health emergency, to suspend the validity of each of the deadlines provided for in the laws and regulations in force, if it appears that the maintenance of this validity prevents on the one hand the persons concerned from exercising their rights or fulfilling their obligations during this period, or, if it is due the measures taken by the competent public authorities in order to reduce the spread of the pandemic.

The law indicates that a regulatory text will specify the time limits for which the lifting of the suspension does not apply.

Source: SGG, BORM n ° 6903, 27 July. 2020