Labor Market: Bill Receives Endorsement

On third debate, Panama approved the legislative bill that aims at gradually reintegrating employees to their companies, which have already restarted their activities and which in 2020 suspended labor contracts due to the crisis caused by the covid-19 outbreak.

Thursday, February 25, 2021

The National Assembly approved on February 24 bill No.542, submitted by the Ministry of Labor and Labor Development (Mitradel), which allows the gradual reinstatement of workers with suspended contracts, recognizes the payment of maternity leaves to workers with suspended contracts, the return of disabled people and establishes temporary measures to preserve employment and stability of the companies, details an official statement.

The document states that "... this bill rescues and reaffirms some elements of Law No.157 of 2020, such as the regulation of the termination of the employment relationship by mutual agreement and the total cancellation of the benefits to which the worker is entitled after the suspension."

With such norm, the reinstatement of workers is regulated gradually by economic sector, as follows: primary sector will have three months; the secondary sector six months and the tertiary sector up to eight months, adds the statement.

The document concludes that "... within the novelties of the project, Mitradel creates the National Unemployment Registry, with the purpose of having statistical data that will allow the promotion of clear public policies for the promotion of employment, being the first time that this data will be available and will be made viable through the computer platform of the Digital Government."

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More on this topic

Labor Market: Bill Moves Forward

February 2021

In Panama, the first debate was approved in the first debate of the legislative project that intends to gradually reintegrate the employees to their companies, the same that have already restarted their activities and that in 2020 suspended labor contracts due to the crisis caused by the covid-19 outbreak.

The bill legalizing the gradual reintegration of suspended contract workers to their companies, which will be in force until the end of the year, has been pending in the National Assembly since February 8, after being submitted to the Presidency by the Minister of Labor, Doris Zapata.

Bill to Reactivate Labor Contracts

February 2021

In Panama, a legislative project was submitted which intends to gradually reintegrate the employees to their companies, which have already restarted their activities and which in 2020 suspended labor contracts due to the crisis caused by the outbreak of covid-19.

According to the legislative body, the bill which legalizes the gradual reintegration of the suspended contract workers to their companies and which will be in force until the end of the year, has been pending in the National Assembly since February 8, after the Minister of Labor, Doris Zapata, delivered it to the Presidency.

Green Light to Reduce Working Hours

July 2020

A decree was published in Panama authorizing the modification or temporary reduction of the working day, which due to the economic crisis generated by covid-19 may be reduced by up to 50%.

The new regulation establishes that the agreement to modify working hours must include methods to achieve the gradual recovery of working hours to the levels existing before the crisis and that they must not affect the hourly rate agreed in the current employment contract, reported the Ministry of Labor and Labor Development.

Contract Suspension: Another Extension in Panama

July 2020

In this scenario of economic crisis, the Ministry of Labor has extended for the fourth time and for 30 more days, the provision that allows companies in the country to suspend the contracts of their employees.

Executive Decree No. 100 of July 1, 2020 authorized a further extension of the temporary suspension of the effects of employment contracts, which will apply automatically for a period of 30 calendar days in companies whose operations have not been reactivated according to the plans for a gradual return to economic activity, reported the Labor Ministry.

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