Law 25-20 sets a legal mechanism for the measures implemented to support Moroccan businesses and formal employees amid the COVID-19 crisis.
Rabat – The Moroccan government council has approved a draft law enacting exceptional measures in favor of employers who are affiliated with the National Social Security Fund (CNSS) and whose employees lost their jobs due to the COVID-19 crisis.
The government council, chaired by Head of Government Saad Eddine El Othmani, held a video conference meeting on Friday, April 17.
Draft law 25-20 gives a legal framework to the measures implemented by the Economic Monitoring Committee for businesses and employees in the formal sector.
The law sets the conditions for granting a MAD 2,000 ($200) monthly stipend to employees with suspended activity.
Companies should prove that their monthly turnover dropped by at least 50% compared to the same period in 2019 for their employees to benefit from the monthly stipend.
The legal text also sets a limit on the number of employees that each company can declare suspended due to the pandemic. Only a maximum of 500 employees per company can benefit from the financial aid.
Companies with a 30% to 50% monthly turnover decline will undergo a case-by-case review by a committee that includes representatives from the Ministry of Finance and the Ministry of Labor, along with members from the ministerial departments of the sectors to which the companies belong.
The law also specifies that the stipend for the month of March only concerns employees who stopped work before March 15. Employees who worked part of the second half of March are not eligible for the stipend.
As such, businesses that declared employee suspensions despite maintaining activity after March 15 need to reimburse the indemnities issued to employees.
After deliberation, the government council deferred the draft law to the House of Representatives for approval within the next week, revealed Minister of Education and Government Spokesperson Saaid Amzazi following the meeting.
Once approved by the parliament and published in the country’s Official Bulletin, Law 25-20 will become official.
