Compensation: What About Year-End Bonuses?

No job market, anywhere in the world, has been able to escape in recent years from this immense wave of resignations. Today's employees are more than ever eager to leave their current positions. Faced with this situation, companies have no choice but to rush to enhance their employer brand. The emotional factor proves to be indispensable.

First and foremost, it is important to keep in mind that in Morocco, the law does not require employers to provide any additional remuneration to their employees beyond the salary. However, some companies have maintained the tradition of offering a productivity bonus or a 13th-month salary at the end of the year. This serves as a way for employers to encourage their employees and motivate them to demonstrate both commitment and loyalty.

Although the granting of these bonuses is not mandatory, any company that commits to providing any form of gratuity to its employees must do so for all, without exception. Therefore, in case of discrimination regarding year-end bonuses, the affected employees can seek assistance from the labor inspection to seek resolution. To avoid such internal conflicts and disputes, some employers structure year-end bonuses based on performance evaluations.

It is essential to note that for companies operating in sectors that entail variable salaries, having a robust evaluation system and rewarding the most high-performing employees is crucial. This serves the dual purpose of motivating them to excel even further and retaining them, preventing them from seeking opportunities with other potentially more generous employers. However, to prevent any potential disputes or conflicts, employers must clearly outline the variable remuneration system to their teams during the recruitment process and explicitly include it in the employment contract.