Employment Contract: Key Points to Watch

No additional clause, even if signed by both parties (employer and employee) and legalized, can replace the law. It is important to think about your retirement without focusing on net salary. The non-compete clause is not governed by any text and the employee is favored in case of dispute.
Sometimes, the employee tends to dwell on certain points of the employment contract, not knowing that the essential is elsewhere. Indeed, certain provisions are governed by law, and no other agreement, even signed and legalized, can replace them, given the well-known principle of law: "the public order text prevails over any particular convention". Roughly speaking, for both the employer and the employee, the law applies to all and no one can derogate from it. Here are some essential points to watch:

1. Salary
We have noticed that the majority of candidates focus on the net salary that will be received at the end of each month, without worrying about the gross salary that generates it. For example, a net salary of 25,000 DH, composed of a base salary of 5,000 DH (yes, it exists!), in addition to several non-taxable allowances, is not the same as a net salary of 25,000 DH which consists of a significant base salary. The difference lies in the fact that in the second case, the calculation basis for retirement and others, for example, is more significant. It is necessary to think long-term and not to limit oneself to the short term.
If the employer, in order not to pay too much tax, invents several non-taxable allowances in addition to the base salary, they should know that, in most cases, these allowances are capped by law. So, hello damage in case of control! Finally, advice for both the employer and the employee: when signing the employment contract, create a salary simulation on a payslip to allow the employee to understand their salary and to have an idea of what they will receive.

2. Non-compete or non-re-establishment clause
A number of candidates are reluctant to sign clauses in which, for example, it is specified that the employee will not have the right to work with the competition "for two years, and throughout the Moroccan territory, not to mention that they will not be able to create a competing activity to that of their former employer during this period"...
It should be specified that the employer can put what they want in a contract. That remains their problem. What should not be forgotten is that the legislator has not provided any legal text governing this type of clause, and even if there is jurisprudence, it should be known that in Morocco this jurisprudence is generally not uniform. The judge takes into consideration what is logical and this is the case in the matter of non-competition. Example: a person who has only worked in one area of activity in their life cannot work only for the competition or create their own business. So, at this level, everything is clear. If we were to apply any non-compete clause in the Moroccan way, we would end up with thousands of unemployed people. We believe that what is practiced in Europe and the United States is reasonable. The employee is entitled to payment of their salary for the entire period during which they must respect any non-compete clause. In the case, of course, where they cannot carry out an activity other than the one they previously carried out. Another piece of advice for employers: do not make any written commitment to poach anyone. If a copy falls into the hands of a competitor, they could sue and win their case. This case is explicitly provided for in the Labor Code.
Employers in the same sector of activity should consider signing a gentlemen's agreement stating that no one will poach from the other, and that would be the end of it.

3. Geographical mobility
It may happen that a single employee is asked to sign a contract in which it is stipulated that they agree to be "geographically mobile", that is to say that they can be transferred wherever the company needs if the needs of the company require it. The day they are married, with children to support, the situation will change. The employer must know that they cannot apply this clause because the Labor Code provides that the employee's home must be taken into consideration for any transfer to be carried out within the framework of work. So the law imposes certain rules that cannot be exceeded. Training
Clauses are included in contracts, stipulating that the employee will have to reimburse the training they have received in the event of departure.
To be clear: if the training falls within the scope of the employee's duties, they will have nothing to reimburse. On the other hand, if the company finances a master's degree or other diploma-granting training, the beneficiary will have to pay before leaving, or simply try to negotiate their departure well.

4. Career Management
Many candidates are concerned about this issue at the time of their recruitment and would like to see a clause in their contract setting out a career plan. In principle, this is useless. No employee is married to the company for life and it is up to each person to manage their career. Everyone must prepare their evolution by anticipating, for example, the next ten years of their career.
Focus on the job for which you were hired; prove yourself; demonstrate that you are a reliable person and then your career management is assured. If there is no response from your employer, simply change companies!

5. Probationary period and notice period
The Labor Code and its implementing decrees have provided for everything in this matter. This is why employers should avoid, for example, including clauses in a contract stipulating that the probationary period is one year (yes, it exists!) or that the notice period for a CEO is of the same duration.


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