Legal Risks for Textile Companies Employing Over 50 Workers Without Internal Work Rules in Morocco 

In Morocco, textile companies employing over 50 workers face serious legal and financial risks if they fail to implement internal work rules and establish a Hygiene and Safety Committee (CSH). Under Law No. 65-99 (the Moroccan Labor Code), compliance is not optional — it’s a statutory obligation. Non-compliance can lead to administrative fines, civil liability, operational suspension, and reputational damage, especially for export-oriented firms working with international buyers. 

Understanding the Legal Obligation 

According to the Moroccan Labor Code, all employers in industrial sectors such as textile manufacturing must comply with two distinct but related requirements: 

1. Internal Work Rules (Règlement Intérieur) – mandatory for companies with 10 or more employees. These rules define: 

• Disciplinary measures and workplace conduct 
• Working hours and leave procedures 
• Hiring and termination protocols 

2. Hygiene and Safety Committee (Comité de Sécurité et d’Hygiène – CSH) – required when the workforce reaches 50 or more employees. 

The CSH focuses on: 

• Workplace health and safety 
• Risk prevention and hazard identification 
• Proposing safety improvements 
• Ensuring compliance with occupational standards

Failure to set up these internal systems constitutes a breach of labor law, especially for textile factories where employees operate heavy machinery, handle chemicals, and face ergonomic and fire hazards. 

Key Legal Risks for Non-Compliance 

1. Administrative Fines and Sanctions 

Labor inspectors have the authority to impose fines ranging from 2,000 to 5,000 MAD for violations related to hygiene, safety, or missing internal regulations. 

• Repeated violations can result in escalated penalties. 
• Inspections may be unannounced, especially in high-risk industries like textiles. 

If accidents occur and the company has not established internal safety rules, authorities may treat this as aggravated negligence. 

2. Increased Liability in Case of Accidents 

Without a CSH, companies face heightened civil and criminal liability for workplace incidents. 

Courts often side with injured employees if the employer lacks documented safety measures. Examples of risks in textile factories include: 

• Burns or injuries from sewing and dyeing machines 
• Respiratory illnesses from fiber dust exposure 
• Chemical irritation from dyes or cleaning agents 

In the absence of internal work rules, the company’s defense in court weakens — even if the worker was partially at fault. 

3. Operational Interruptions by Labor Inspectors 

Labor authorities can order the immediate suspension of operations deemed unsafe. This can cause: 

• Production delays 
• Contractual penalties from foreign buyers 
• Loss of client trust

Reinstating operations often requires showing evidence of corrective actions, CSH meeting reports, and documented safety procedures. 

4. Damage to Reputation and International Contracts 

In Morocco’s textile export sector, compliance with ILO standards and EU supply chain laws is essential. 

Non-compliance can lead to: 

• Loss of certification (ISO, OEKO-TEX, BSCI, etc.) 
• Rejection of orders from European or American buyers 
• Brand reputation damage — particularly for suppliers working with sustainability-focused brands 

Global clients increasingly require proof of labor compliance as part of ESG audits. 

How to Comply and Avoid Penalties 

To protect your business, textile companies should take these concrete steps: 

1. Draft and register internal work rules with the local labor inspection authority.

2. Establish the Hygiene and Safety Committee (CSH) as soon as the workforce reaches 50 employees. 

3. Designate a company doctor or occupational health professional. 4. Hold quarterly CSH meetings and document minutes. 

5. Conduct periodic safety training for employees. 

6. Display safety and disciplinary rules visibly within the workplace. 

Articles 336–344 of the Labor Code outline the CSH’s structure: it must include employer representatives, employee delegates, and a medical officer. 

For official guidance, companies can contact the Ministry of Employment and Social Affairs or a certified labor consultant. 

Why Textile Companies Are Under Greater Scrutiny 

Textile manufacturing is considered one of the highest-risk industrial activities in Morocco due to: 

• Continuous exposure to machinery and moving parts
• Use of flammable and chemical substances 
• Long working hours and repetitive strain 
• Lack of ergonomic design in workstations 

Because of these factors, labor inspectors often prioritize the textile sector during safety audits, making compliance a critical competitive advantage. 

Expert Insight 

In practice, many Moroccan textile firms treat internal regulations as a formality — until a serious accident or inspection visit occurs. However, implementing these measures proactively: 

• Reduces workplace accidents by up to 40%, 
• Strengthens employee morale, 
• Improves audit readiness for export clients, and 
• Protects company leadership from criminal prosecution under the Labor Code.

FAQs 

1. Is it mandatory to have internal work rules if my textile company has fewer than 10 employees? 

No. The internal work rules become mandatory starting from 10 employees under the Labor Code. However, safety obligations still apply regardless of company size. 

2. What happens if my company has 49 employees — do I still need a Hygiene and Safety Committee? 

The legal obligation starts at 50 workers, but it’s best practice to prepare early since inspections consider workforce fluctuations and subcontracted staff. 

3. Can I outsource the preparation of internal rules and CSH setup? 

Yes. Many firms hire labor law consultants or HR compliance experts to draft and register documents, ensuring legal conformity and proper representation. 

4. What are the penalties for repeated non-compliance? 

Repeated violations can lead to multiple fines, stricter inspections, and potential temporary closure of the production site. 

5. Can missing internal work rules affect insurance claims? 

Absolutely. Insurers may deny compensation for workplace injuries if the company lacks legally required internal safety documentation. 

Final Thoughts 

Ignoring Morocco’s labor compliance requirements is a costly mistake for textile companies. With increasing international oversight on labor practices, having internal work rules and a Hygiene & Safety Committee is not only a legal duty — it’s a business necessity. By aligning with the Labor Code and maintaining transparent safety protocols, textile manufacturers can protect their workforce, reputation, and export partnerships.