Only employees who have involuntarily lost their job will receive benefits
19 November 2013
Read by 1972 persons
After many years of waiting and numerous studies to ensure the viability of the system, the National Social Security Fund adopted a draft resolution this summer to establish a job loss benefit (IPE) which should come into effect at the beginning of 2014, thus strengthening the social protection system for many employees. The adoption of the project confirms a social dialogue opened in 2010. Initially, and in application of the provisions of the Labor Code, the government and social partners intended to set up job loss benefits for economic, technological and structural reasons, as provided for in the last paragraph of Article 53 of the Labor Code, but this remained ineffective due to a lack of implementing text. Finally, after obtaining assurances from the State that it would contribute to the financing of such a measure, they agreed to create a "job loss benefit", more broadly intended to compensate all employees who have involuntarily lost their jobs. This project therefore de facto entails the addition of a new benefit which is not expressly provided for in the Labor Code, with the associated legal difficulties of such a situation.
Mohamed Oulkhouir
• Lawyer at the Paris Bar
• Managing Partner CWA Morocco
Le Matin Emploi: Do we have texts governing and guaranteeing the right to unemployment benefits?
Mohamed Oulkhouir: The creation of a job loss benefit is still under consideration, but should be implemented shortly. Indeed, at its meeting on 23 July, the Board of Directors of the National Social Security Fund adopted the resolution on the creation of a job loss benefit. The text of the project was also presented on 25 July to the Government Council and should come into effect on 1 January 2014.
It should be recalled that in April 2013, Law No. 47-12 approved Convention No. 102 of the International Labour Organisation (ILO) which sets minimum social security standards. Articles 19 and following of this international Convention provide for the obligation for signatory States to guarantee employees the allocation of unemployment benefits. The eventuality covered must include the suspension of earnings resulting from the inability to obtain suitable employment in the case of a protected person who is able to work and available for work. The forthcoming entry into force of the job loss benefit therefore also corresponds to Morocco's alignment with the minimum social security standards of the International Labour Organisation.
What is the purpose of the IPE?
The draft job loss benefit has a dual purpose. On the one hand, it is a question of guaranteeing the employees concerned an income to cope with the social consequences of losing their jobs. On the other hand, the mechanism aims to provide the employee with support in terms of continuing education and reintegration through the combined action of the National Agency for the Promotion of Employment and Skills (ANAPEC) and the National Office for Vocational Training and Labour Promotion (OFPPT). To this end, an action plan will be implemented to promote the reintegration of the employees concerned and improve their employability through qualifying training programmes. According to the General Confederation of Moroccan Enterprises (CGEM), the job loss benefit will help to make the labour market more fluid and could therefore be a tool for reducing unemployment.
Who is concerned by the IPE?
Since the text of the draft job loss benefit has not yet been made public, it is not possible to precisely describe the criteria required to benefit from the benefit. However, it emerges from the information provided by the Ministry of Employment and Vocational Training and the General Confederation of Moroccan Enterprises (CGEM) that only employees who have lost their jobs "involuntarily" will benefit from the benefit. The practical application of the concept of involuntary job loss can prove particularly difficult. Indeed, is an employee dismissed for gross misconduct or for a long unjustified absence in a situation of involuntary job loss? By way of comparison, French employees dismissed for gross misconduct do not lose the benefit of benefits paid by Pôle Emploi. What will be the case in Morocco? In addition, it seems that the employees concerned will have to justify 780 days of social security contributions, including 216 during the last year of work before losing their job.
How is this benefit calculated?
According to the information available to us at present, the employees concerned should receive a benefit equal to 70% of the average monthly salary received over the last 36 months, but not exceeding the SMIG. It should be recalled that the minimum wage is currently set at 12.24 dirhams per hour in the industrial, commercial and liberal professions sectors, or approximately 2,333.76 dirhams per month. As for the financing of the job loss benefit, it should be noted that the State will allocate a budget of 500 million dirhams over the first three years. Employers will contribute 0.38% of the CNSS reference salary and employees 0.19% of the same salary, on the basis of 2/3 for employers and 1/3 for employees.
For how long will those concerned be entitled to this compensation?
And when will it end? According to a press release from the Ministry of Employment and Vocational Training, the job loss benefit should be paid for a maximum period of six months from the cessation of the employee's duties to enable them to cope with the social consequences of their job loss. During this period, it is planned that the employee who has lost their job will continue to benefit from compulsory health insurance (AMO) and family allowances.
His point of view
The forthcoming entry into force of the job loss benefit is naturally progress that will benefit Moroccan employees. Although the job loss benefit is capped at a relatively modest amount and can only be paid for a maximum period of six months, this support mechanism constitutes a significant advance in terms of social protection for employees. However, this measure will only be fully effective when the action plan for training employees who have lost their jobs is implemented, in order to promote a return to employment.
Najat Mouhssine.
Lematin.ma
Published on 15 November 2013.
Posted online on 19 November 2013.
Mohamed Oulkhouir
• Lawyer at the Paris Bar
• Managing Partner CWA Morocco
Le Matin Emploi: Do we have texts governing and guaranteeing the right to unemployment benefits?
Mohamed Oulkhouir: The creation of a job loss benefit is still under consideration, but should be implemented shortly. Indeed, at its meeting on 23 July, the Board of Directors of the National Social Security Fund adopted the resolution on the creation of a job loss benefit. The text of the project was also presented on 25 July to the Government Council and should come into effect on 1 January 2014.
It should be recalled that in April 2013, Law No. 47-12 approved Convention No. 102 of the International Labour Organisation (ILO) which sets minimum social security standards. Articles 19 and following of this international Convention provide for the obligation for signatory States to guarantee employees the allocation of unemployment benefits. The eventuality covered must include the suspension of earnings resulting from the inability to obtain suitable employment in the case of a protected person who is able to work and available for work. The forthcoming entry into force of the job loss benefit therefore also corresponds to Morocco's alignment with the minimum social security standards of the International Labour Organisation.
What is the purpose of the IPE?
The draft job loss benefit has a dual purpose. On the one hand, it is a question of guaranteeing the employees concerned an income to cope with the social consequences of losing their jobs. On the other hand, the mechanism aims to provide the employee with support in terms of continuing education and reintegration through the combined action of the National Agency for the Promotion of Employment and Skills (ANAPEC) and the National Office for Vocational Training and Labour Promotion (OFPPT). To this end, an action plan will be implemented to promote the reintegration of the employees concerned and improve their employability through qualifying training programmes. According to the General Confederation of Moroccan Enterprises (CGEM), the job loss benefit will help to make the labour market more fluid and could therefore be a tool for reducing unemployment.
Who is concerned by the IPE?
Since the text of the draft job loss benefit has not yet been made public, it is not possible to precisely describe the criteria required to benefit from the benefit. However, it emerges from the information provided by the Ministry of Employment and Vocational Training and the General Confederation of Moroccan Enterprises (CGEM) that only employees who have lost their jobs "involuntarily" will benefit from the benefit. The practical application of the concept of involuntary job loss can prove particularly difficult. Indeed, is an employee dismissed for gross misconduct or for a long unjustified absence in a situation of involuntary job loss? By way of comparison, French employees dismissed for gross misconduct do not lose the benefit of benefits paid by Pôle Emploi. What will be the case in Morocco? In addition, it seems that the employees concerned will have to justify 780 days of social security contributions, including 216 during the last year of work before losing their job.
How is this benefit calculated?
According to the information available to us at present, the employees concerned should receive a benefit equal to 70% of the average monthly salary received over the last 36 months, but not exceeding the SMIG. It should be recalled that the minimum wage is currently set at 12.24 dirhams per hour in the industrial, commercial and liberal professions sectors, or approximately 2,333.76 dirhams per month. As for the financing of the job loss benefit, it should be noted that the State will allocate a budget of 500 million dirhams over the first three years. Employers will contribute 0.38% of the CNSS reference salary and employees 0.19% of the same salary, on the basis of 2/3 for employers and 1/3 for employees.
For how long will those concerned be entitled to this compensation?
And when will it end? According to a press release from the Ministry of Employment and Vocational Training, the job loss benefit should be paid for a maximum period of six months from the cessation of the employee's duties to enable them to cope with the social consequences of their job loss. During this period, it is planned that the employee who has lost their job will continue to benefit from compulsory health insurance (AMO) and family allowances.
His point of view
The forthcoming entry into force of the job loss benefit is naturally progress that will benefit Moroccan employees. Although the job loss benefit is capped at a relatively modest amount and can only be paid for a maximum period of six months, this support mechanism constitutes a significant advance in terms of social protection for employees. However, this measure will only be fully effective when the action plan for training employees who have lost their jobs is implemented, in order to promote a return to employment.
Najat Mouhssine.
Lematin.ma
Published on 15 November 2013.
Posted online on 19 November 2013.
