When a Moroccan CDI employee is dismissed for any reason other than gross misconduct, they are owed statutory severance pay under article 53 of the Labour Code. This guide walks through the calculation, exclusions and common mistakes.
When it applies
- CDI (permanent) contract;
- At least 6 months continuous service with the employer;
- Dismissal for a reason other than the gross misconduct listed in article 39 (theft, violence, disclosing secrets, drunkenness on duty, etc.);
- Disciplinary procedure properly followed (prior hearing, written grounds, deadlines).
If gross misconduct is established, statutory severance is not owed — but unpaid salary up to termination, accrued-leave pay, and accrued seniority bonus are still owed.
Calculation base
The base is the average of salaries received over the 52 weeks preceding termination, including:
- Base pay;
- Salary-like bonuses and allowances (seniority, performance, year-end);
- Benefits in kind valued;
- Overtime premium.
Excluded — reimbursements of actual expenses, non-periodic payments tied to exceptional events.
Scale (article 53)
Per year or fraction of year of service:
| Seniority | Hours per year of service | Days equivalent |
|---|---|---|
| 0 to 5 years | 96 h | ~4 weeks (~1 month) |
| 6 to 10 years | 144 h | ~6 weeks (~1.5 months) |
| 11 to 15 years | 192 h | ~8 weeks (~2 months) |
| Above 15 years | 240 h | ~10 weeks (~2.5 months) |
Tiers are cumulative — a 12-year employee gets 5 × 96 + 5 × 144 + 2 × 192, not 12 × 192.
Step by step
- Compute average hourly pay over the last 52 weeks.
- Allocate seniority across the tiers.
- Multiply each tier by the hours scale.
- Sum and apply the average hourly rate.
Worked example
Employee with 8 years’ seniority, average hourly pay MAD 35.
- Tier 1 — 5 × 96 h = 480 h;
- Tier 2 — 3 × 144 h = 432 h;
- Total = 912 h;
- Severance = 912 × 35 = MAD 31,920 gross.
Combines with other payments
Severance is on top of:
- Pay in lieu of notice (if notice wasn’t served);
- Accrued-leave pay (earned but unused leave);
- Possible damages for abusive dismissal (article 41) — capped at 1.5 months per year of service, maximum 36 months.
Special cases
- Redundancy — specific procedure (works-council information/consultation, governor’s authorisation in some cases); statutory severance is due in addition to any specific indemnities required by law or collective agreement.
- Force-majeure termination — the employer must prove absolute and lasting impossibility; the judge decides on residual indemnities.
- Resignation reframed as constructive dismissal — complex; get legal advice.
Watch-outs for employees
- Ask for a written letter of dismissal with reasons and a final settlement receipt with line-item detail.
- The time bar to challenge a dismissal is short (90 days at the social court, with exceptions) — don’t wait.
- Keep every payslip and contract — you’ll need them to prove seniority and average pay.
Related tool
Compute your severance in seconds with the severance calculator — tier breakdown and totals.
Further reading
- Labour Code glossary entry.
- CDI / CDD / temp contracts guide.
- Official text: sgg.gov.ma (Law 65-99, articles 39 to 57).