Service Provider Alliance
Panama Constitution recognizes and protects work. Government shall promote full employment policies and guaranty all employees’ necessary condition for a decent life.
Constitution also grants basic rights to employees such as nondiscrimination, right to form unions; to strike, limits to the daily and weekly work shift, maternity protection, ...
Please log in or register above for access to see the rest of this information.
In Panama the at will employment does not exist. General rule for dismissal, is that the employer must have a just cause. Exceptions to this rule are terminations during the probationary period or within the ...
Labor Code establishes that minimum wage which shall be reviewed every two years by the Government and representatives of the unions and private sector.
1. For determination of the minimum wage, the following will be taken into account:
2. Regional differences in the cost of living.
3. The general ...
Employees are normally entitled to 30 calendar days of annual paid leave every year.
Annual paid leave is accrued at the rate of one day for every eleven days of work. The employee may not wave annual paid leave for payment. However, it can be accumulated for up to two years, by mutual agreement. The ...
The special classes protected in Panama are maternity women, chronically ill persons and parents or guardians of persons with disabilities, who cannot be dismissed without the authorization of a labor judge. To obtain dismissal authorization, the employer must prove just cause for dismissal.
With only a few exceptions, such as in the case of domestic employees, it is mandatory to terminate labor relationship in writing.
The employer may terminate the employment relationship in any of the following ways:
1. Unilateral termination. During the first two (2) years of the employee’s continuous labor services, ...
Pursuant to Panamanian labor law, there are some cases that due to economic reasons layoffs or work force reductions may be permitted, upon a previous authorization from the Labor Ministry.
The cases are restricted to the ones established in Article 213 of the Labor Code, which are:
1. Insolvency or bankruptcy of the employer;
Article 126 number 3 of the Panamanian Labor Code, which establishes the Employee´s obligations, rules that Employees shall refrain from disclosing to third parties, unless with the express authorization of the employer, technical, commercial and manufacturing trade secrets of products in which they are directly or indirectly ...
The law allows the payment of wages in cash or by check, in legal currency that in Panama is the United States dollar. According to the Labor Code payment of wages by bank transfer are allowed.
The employer must submit a monthly report to Social Security on the wages paid during the month to its ...
Article 126 number 9 of the Labor Code establishes as an employee´s obligation, to get Drug test requested by the employer during application for employment as well as during the employment.
The only regulation on the off-duty conduct of employees is the prohibition to commit acts of ...
The mandatory professional risk insurance that the employer pays to Social Security every month covers professional risks, except for fault or negligence on the part of the employer or the employee.
Non-work related injuries are also covered by Social Security, as well as any other condition ...
There is no regulation for unemployment subsidy in Panama. However, all employers must have a fund to pay at the end of the labor relation, Seniority and Severance Payments to all employees hired under in definitive duration contracts. This fund shall be deposited in a Trust managed by private entities authorized for that purpose.
All employers with operations in Panamanian territory must register all its employees with the Social Security. Employer quota is 12.25% of the employee’s salary. Employee´s quota is 9.25% of his/her salary.
Social Security benefits for the employee are total coverage of Health services (medicine, hospital and ...
Union Freedom is a Constitutional right. Art 68 Political Constitution. The right to strike is also constitutional right. Art. 69 Political Constitution.
There are four types of worker unions in Panama. Art. 343 Labor Code. They all require more than 40 members in order to obtain legal representation. ...
In Panama, Law Decree No. 3 of 2008, which creates the National Immigration Service, and Executive Decree No. 320, which establishes the requirements and procedures applicable to obtaining temporary and permanent residency, are the core provisions regarding immigration.
Panama’s strategic geographical ...
For additional information about labor and employment law in Panama, please contact:
Law Firm: Morgan & Morgan Legal
Address: MMG Tower, 23rd Floor, Costa del Este, Panama City, Republic of Panama.
Email address:
ricardo.aleman@morimor.com;
mariateresa.mendoza@morimor.com...