Intracompany transfers restricted

IMPACT – MEDIUM

What is the change? Morocco has begun limiting the number of foreign nationals who are eligible to work in Morocco under the intracompany transferee, or ICT, route.

What does the change mean? Only ICTs who are transferred from an overseas parent corporation to a Moroccan subsidiary are eligible; employees transferring between sister companies are no longer eligible and will have to complete longer procedures including obtaining pre-approval from ANAPEC (Agence Nationale de Promotion de l’Emploi et des Compétences), the national employment agency, in order to qualify for work permits.

• Implementation time frame: Immediate.
• Visas/permits affected: Work permits.
• Who is affected: ICTs transferring to Morocco from a sister company.
• Impact on processing times: The ICT process offers a faster process without the need to obtain preapproval from ANAPEC. Obtaining preapproval can take anywhere from two to 12 weeks, depending in part on whether labor market testing is required
• Business impact: ICTs who are transferees between sister companies should anticipate longer procedures.

BAL Analysis: Global companies should be aware of the new limitation on ICTs who are transferred between affiliates rather than between an overseas parent company and a Moroccan subsidiary. Companies using the ICT route may need to consider this restriction when forming a Moroccan business unit.

This alert has been provided by the BAL Global Practice group and our network provider located in Morocco. For additional information, please contact your BAL attorney.

Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.