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Uribe & Asociados, your trusted lawyers in Panama and Colombia.
Labor Law Specialists in Panama
Labor law in Panama establishes the rules and principles that both employers and employees must follow. It is essential for both parties to understand their rights and obligations within the employment relationship. Having the guidance of legal specialists is key to maintaining a workplace based on harmony, efficiency, professionalism, and stability where both the company and the employee grow together.
We provide labor law consultations for both employers and employees. At Uribe & Associates, we offer legal advice on:
- Negotiation and mediation.
- Management of foreign personnel in Panama.
- Internal workplace regulations.
- Review and drafting of employment contracts.
- Special employment protections: maternity, union membership, disability, or legally protected illness.
- Termination of employment for justified causes: bankruptcy or permanent closure of the business, downsizing due to economic crises.
More Information on Labor Law
We provide guidance in drafting employment contracts, ensuring they comply with current regulations and helping minimize potential labor disputes in the future.
It is important to keep in mind that labor litigation can often be avoided through an out-of-court settlement or by resorting to labor conciliation.
According to labor law provisions, a woman who is pregnant may only be dismissed from her job for just cause and with prior judicial authorization.
FAQ
An employment contract should include several key elements: the parties’ information, job title or position, contract duration, working hours, salary, additional benefits, rights and obligations of both the employee and employer, conditions for contract termination, confidentiality clauses, among others.
You should consult an experienced lawyer to review the grounds for the dismissal and provide, among other documents, the employment contract (if available) so they can assess the legality of the termination. Subsequently, a legal claim may be filed to have the dismissal declared null and void due to illegality.
Improper retention is considered a crime under Panamanian criminal law. Article 241 of the Penal Code states:
“The director, officer, manager, administrator, legal representative, employee, or worker of a company who, within three (3) months after the obligation to pay arises, retains and fails to remit the employee-employer contributions to the Social Security Fund, provided that the amount exceeds one thousand balboas (B/.1,000.00), or anyone who has been requested by this entity to release the withheld amount, shall be punished with imprisonment of two to four years.”