Employer of record in Morocco
You have found the right person in Morocco, but you have no local entity to hire them through. An employer of record arrangement — portage salarial, as it is known locally — closes that gap: we become the employee's legal employer under a full Moroccan employment contract, while you carry on directing the work day to day.
Who an employer of record is for
The first case is the foreign company that wants to hire a Moroccan professional without setting up a subsidiary: a developer, a sales representative, a support specialist. Incorporating for one or two people means fixed overhead and a permanent administrative load that an employer of record avoids for as long as headcount stays small.
The second is the market test: a sales representative or country manager employed this way gives you a real presence and a local contract, without tying up capital or committing to an incorporation you may later have to unwind. The third concerns consultants working for a foreign client who would rather hold employee status than invoice in their own name.
Conversely, this is not the right route if you are opening a retail outlet, if you need to hold assets or stock in Morocco, or if your activity requires a local licence. Those situations call for an entity of your own.
How it works in practice
The arrangement rests on two separate contracts: a Moroccan employment contract between the employee and us, and a service contract between your company and ours.
Defining the role
Together we settle the job function, the target gross salary, the duration, the place of work and the specifics of the role: probation period, benefits, confidentiality clause.
Moroccan employment contract
We draw up a contract compliant with the Moroccan Code du travail (labour code) and have the employee sign it; they become our employee, with every right attached to that status.
Hiring declarations
Registration with the CNSS (Caisse Nationale de Sécurité Sociale, the state social security fund), entry in the staff register, compulsory medical cover and the pre-employment medical examination are all completed before the start date.
Monthly payroll
We calculate the salary, issue the payslip, withhold social contributions and income tax (IR) at source, pay the net amount to the employee and remit the withholdings to the authorities.
Day-to-day administration
Leave, absences, sick leave, certificates, contract amendments: we keep the personnel file and answer the employee's requests.
End of contract
Resignation, expiry of a fixed-term contract (CDD) or termination at your initiative: we prepare the final settlement (solde de tout compte) and the exit documents, and flag the consequences to you beforehand.
What we take on
You keep direction of the work. Everything that follows from being the employer sits with us.
- Drafting and signing the employment contract and any amendments to it
- CNSS registration and the employee's compulsory medical cover
- Payroll calculation and monthly payslips
- Withholding and remitting social contributions and income tax deducted at source
- Tracking paid leave, absences and occupational health obligations
- Keeping the personnel file and issuing certificates
- The exit: notice period, final settlement, end-of-contract documents
Employer of record or freelance contract: the reclassification question
Many foreign companies start by signing a service agreement with a Moroccan independent contractor. As long as the relationship stays occasional and the contractor keeps their autonomy, the arrangement holds up; it becomes risky once the relationship takes on, in practice, the features of employment.
The indicators are well established: imposed working hours, an exclusive link with a single client, detailed instructions and daily supervision of the work, tools supplied by the client, fixed monthly pay. Taken together, these characterise a relationship of subordination, and a judge may reclassify the relationship as an employment contract.
The consequences then bear on the past: back payment of social contributions, arrears of employment entitlements and, depending on the case, severance compensation. An employer of record removes that uncertainty by giving the relationship, from the outset, the legal character it would have been given in any event.
How the cost is built
The budget has three components: the agreed gross salary, which is the part you steer; employer social contributions, calculated on that gross figure at the statutory rates in force; and our management fee, set after reviewing the assignment and stated in the quote.
To these are added whatever you decide to grant: bonus, transport allowance, equipment, assignment expenses. We produce a full simulation before signature, from gross salary to total employer cost, so that the monthly budget is known in advance.
Employer of record or subsidiary: when to switch
An employer of record is an entry and transition solution. Past a certain point, a subsidiary becomes the more rational option again.
| Criterion | Employer of record | Moroccan subsidiary |
|---|---|---|
| Setup time | A few days | Incorporation, then operational setup |
| Suitable headcount | From one to a few employees | A team set to grow |
| Administrative load | Fully outsourced | Accounting, tax and payroll to carry |
| Local invoicing and VAT | No | Yes |
| Holding assets in Morocco | No | Yes |
| Reversibility | A simple end of contract | Dissolution and liquidation |
Frequently asked questions
Who is the employee's employer?
We are, in law: the Moroccan employment contract is signed between the employee and our company, which carries the employer's obligations. You keep operational direction, meaning the assignments, the priorities and the organisation of the work.
Do I need a company in Morocco to use an employer of record?
No, and that is precisely the point of the arrangement. Your foreign company signs a service contract with us; no Moroccan registration is required on your side.
Can the employee work remotely?
Yes. The place of work is set in the contract and can be the employee's home, one of our offices, or a site you make available. Fully remote work is common in technical and sales roles.
What happens if I want to end the assignment?
Ending the assignment ends the employment contract, which follows the applicable Moroccan rules: notice period, grounds, and any compensation depending on the type of contract and length of service. We set out the consequences before any decision is taken and handle the procedure.
At what headcount should a subsidiary be set up?
There is no statutory threshold. In practice, the switch is justified once the team grows on a lasting basis, or when you need to invoice Moroccan clients, hold assets locally or obtain a local authorisation. We support the transition and the transfer of the employment contracts when the time comes.
Tell us about the role you need to fill
Job function, intended pay, duration: we send back a full employer-cost simulation and the setup timeline, with no commitment.