As the pandemic has changed the ways of accomplishing tasks and telecommuting has gained ground in all markets, flexibility in terms of where and when to work will be one of the factors most valued by employees in this new reality.
The threats caused by the spread of Covid-19, caused companies globally to look for new ways of working. Most teams chose to readjust their dynamics and focused on promoting remote work.
The labor market reports a structural change, as fewer and fewer people are being paid a fixed salary for their work, while at the same time the number of employees earning per project is increasing.
Although the trend has been reported globally for several years, the pandemic accelerated this process, as the economic crisis generated by the Covid-19 outbreak destroyed thousands of formal jobs.
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.
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 business sector opposes the bill that intends to stimulate the economy and local tourism, through the establishment of mandatory rest days and salary surcharges on the days of national events.
This is Bill 487, which is called "Adopting a temporary regime of economic, cultural and national tourism stimulus, through the establishment of mandatory rest days and salary surcharges on national event days", which was presented to the Panamanian Assembly on September 28, 2020.
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.
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.
Due to the economic crisis it is estimated that by the end of 2020 Panama will have 400 thousand new unemployed and the unemployment rate will climb to 25%, assuming that the country generates between 45 thousand to 50 thousand jobs annually, it will take about eight years for the recovery to take place.
The outbreak of covid-19 caused a serious economic crisis in the country, since due to the spread of the disease the authorities have decreed severe home quarantines, mobility restrictions and have limited some productive activities.
By the fourth quarter of 2020, 21% of companies in the country expect to reduce their payrolls, a proportion that is higher than the 14% registered in the third quarter of this year, a rise that is explained by the economic crisis generated by the covid-19.
Panamanian employers report negative hiring expectations for the October-December period. Three percent of the employers expect to increase their workforce, however, 21 percent expect to reduce it, while 68 percent remain unchanged, resulting in a Net Employment Trend of -18%.
As part of the process of reopening the Panamanian economy, it is estimated that in the last two weeks close to 90,000 work contracts have been reactivated, which represents 30% of the suspended labor agreements.
Due to the outbreak of covid-19 and the restrictions imposed by the Panamanian authorities on most economic activities, from March to date about 292 thousand labor contracts have been suspended.
The National Assembly approved in third debate the draft law establishing temporary employment protection measures in companies affected by covid-19.
The initiative presented by the Executive received several modifications in its original content, both in the first and second debate, leaving the deputies with the reservation that these are temporary rules and are not intended to a future reform of the Labor Code, the Assembly reported.
Faced with the sudden change that the new normal generated in companies, employees are challenged to increase their skills to work remotely, adapt to more flexible contracts and refine their technological skills and cognitive qualities.
Telecommuting has become an everyday occurrence among companies in the region, which have had to adjust to the restrictions imposed by governments due to the outbreak of covid-19.
Restrictions on the movement of vehicles and people, and to some extent, the ban on office work, are forcing companies to reinvent their ways of operating and revolutionize their work culture.
Following the spread of covid-19, strict home quarantines were decreed in Central American countries. This scenario boosted the implementation of teleworking and forced companies to adapt to a new way of operating.
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.
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.
In Panama, the Ministry of Labor has again extended for 30 days the provision that allows companies in the country to suspend the contracts of their employees.
By Executive Decree No.97 of May 29, 2020 and in the scenario of the crisis caused by covid-19, the temporary suspension of the effects of labor contracts is extended for the second time.