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Legal Update

Company Law

On 28 May 2020, Law 27-20 providing for specific provisions relating to joint stock companies, mainly to allow for the general assemblies and meetings of board of directors to be held through video-conference or equivalent means despite the absence of such provisions in the by-laws.

Labor Law

  • On 1st July 2020, entry into force of the second raise of the minimum wage provided for by Decree n°2-19-424 to MAD 14.81 per hour.

  • On 23 July 2020, Decree n°2-19-793 providing for additional extraordinary cases allowing for the conclusion of fixed term work agreements:

Temporary works not part of the normal activity of a company;

Temporary works or projects not exceeding one year (twice per the same employer);

Temporary works or projects exceeding one year (once per the same employer);

Employing employees of more than 58 years old who had previously lost their job;

Temporary replacement of an employee pending the hiring of a new one.

State of health emergency

  • On 27 July 2020, Law 42-20 lifting the suspension of legal deadlines
  • On 8 August 2020, Decree 2-20-526 extending the state of health emergency to 10 September 2020 and giving power to the minster of interior on a national level, and the local authorities on a local level, to take any actions they may see fit to relax the restrictions depending on the pandemic situation.
  • On 13 August 2020, Decree 2-20-572 providing for a fine of MAD 300 on people not wearing protection masks in public spaces to be paid immediately.

Publié le

Legal update

Labor law

  • On 22 May 2020, the ministry of work has issued guidelines for the management of the risk of contamination in the workplace
  • On 27 April 2020 promulgation of:
    • Law n°25-50 enacting extraordinary measures in favor of employers affiliated to the National Social Security Fund (CNSS) and their employees, affected by the repercussions of the spread of the coronavirus pandemic (Covid-19); and
    • Decree n° 2-20-331 of application of Law n°25-50 providing for the conditions to be eligible to benefit from the CNSS mechanism (MAD 2,000 per suspended employee payable directly to the employee):
      • the decrease of turnover is more than 50% -the declared suspended employees (and not the total number of employees of the company), including the ANAPEC trainees, is less than 500
      • the suspension of activity is by virtue of an administrative decision in accordance with the provisions of Decree No. 2-20-293 declaring a state of health emergency;
      • the sector of the company is not excluded from the benefit of the CNSS mechanism by decree
      • If the drop in turnover is more than 25% and less than 50%, or if the number of suspended employees is more than 500, the employer’s request is submitted to a committee composed of representatives of the government authorities in charge of finance and employment or in charge of the sector of activity of the relevant company, and the patronat.
  • On 21 April 2020 the tax department has issued a circular providing that the indemnity paid to their suspended employees by companies going through difficulties will be exempted from the income tax, within the limit of 50% of the average net monthly salary.

Data Protection

The Moroccan National commission for the protection of personal data CNDP (Commission Nationale de contrôle de la protection des Données à caractère Personnel), has issued on 23 April 2020 a deliberation (attached) whereby it provides that during the period of health emergency and in the framework of occupational health employers are allowed to measure the temperature of employees and visitors, subject to information of such employees and visitors of the characteristics of the measurement and processing system, for instance through a poster placed at the entrance of the premises.

State of health emergency

  • Decree n°2-20-371 dated 19 May 2020: Extension of the term of the state of health emergency until 10 June 2020 at 6 p.m.
  • Decree n°2-20-330 dated 18 April 2020: Extension of the term of the state of health emergency until 20 May 2020 at 6 p.m.
  • Decree n°2-20-330 dated 24 March 2020: declaration of the state of health emergency until 20 April 2020 at 6 p.m.
  • Decree-law dated 23 March 2020 enacting specific provisions regarding the state of health emergency and the process of its declaration.

  • Since 7 April 2020, wearing masks is mandatory in public spaces

  • On 21 May 2020 the Economic Watch Committee (Comité de Veille Economique, a committee established in the framework of the pandemic) has :
    • called for the return of the business activity on 26 May 2020
    • Presented new loan guarantee products for businesses to boost the economy
  • On 16 March 2020, the judicial authority has decided the suspension of court hearings with the exception of hearings that cannot be postponed, namely:
    • Criminal cases concerning persons in detention;
    • Investigations regarding suspects prosecuted while in detention;
    • Cases relating to minors who should be placed in a rehabilitation center or returned to their family;
    • Urgent cases which delay would cause prejudice to one of the parties.