COVID-19: Executive Decree 100 of July 1, 2020

On July 2, 2020, Executive Decree No. 100 of July 1, 2020 entered into force in Panama, extending the temporary suspension of the effects of employment contracts and dictating other provisions.

Companies whose restart of operations has not been authorized

The temporary suspension of the effects of the employment contracts of companies whose restart of operations has not been authorized according to the measures of gradual return to economic activity, is automatically extended for a 30 calendar days period. Coming into force upon expiration of the initial authorization of the suspension or the expiration of the immediately previous extension period.

Companies whose restart of operations has been authorized

The temporary suspension of the effects of employment contracts of companies whose restart of operations has been authorized is not automatically extended. Companies in this condition that maintain workers with suspended employment contracts must request the Ministry of Employment and Labor Development to extend said employment contract suspensions, according to article 2 of Executive Decree No. 95 of April 21, 2020.

Article 2 of Executive Decree No. 95

Article 2 of Executive Decree No. 95 establishes that the employer must submit electronically to the Ministry of Employment and Labor Development, in a term not less than five (5) business days prior to the date of termination of the original suspension period, a formal request in which the need for such new extension is explained, detailing the affectation to the company and the new suspension term.

In the cases of Executive Decree No. 100 it must be understood that the term of not less that five (5) business days referred to above, applies to the termination period of the original suspension or its last extension.

The Platform “Panama Digital”

Executive Decree No. 100 establishes that, from July 13, 2020, requests for extensions by companies will be processed on the platform provided in www.panamadigital.gob.pa.

However, as of July 14, 2020, said platform had not been enabled as above, so it is recommended that until then companies send their applications using the emails previously provided for this purpose by the Ministry of Employment and Labor Development.

Maximum of four (4) months of suspension

Executive Decree No. 100 establishes in its 5th and penultimate article that the sum of the authorized extensions shall not exceed four (4) months; limitation established in our Labor Code.

However, in recent days the Ministry of Employment and Labor Development submitted a bill to the National Assembly to allow for the suspension of companies’ employment contracts until December 31, 2020.

Law 157 of August 3, 2020

03/08/2020

Today, August 3, 2020, Law 157 of the same date, establishing temporary employment protection measures for companies affected by COVID-19, was promulgated. The main aspects of this law are the following: This law applies to companies that closed their operations, totally or partially, from the beginning of the state of national emergency due to COVID-19 […]

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COVID-19: Executive Decree 100 of July 1, 2020

15/07/2020

On July 2, 2020, Executive Decree No. 100 of July 1, 2020 entered into force in Panama, extending the temporary suspension of the effects of employment contracts and dictating other provisions. Companies whose restart of operations has not been authorized The temporary suspension of the effects of the employment contracts of companies whose restart of […]

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COVID-19: Executive Decree 507 of March 24, 2020

30/03/2020

Country-wide curfew in Panama due to COVID-19 By means of Executive Decree No. 507 of March 24, 2020, a country-wide curfew was imposed in Panama starting on March 25, 2020 at 5:01 a.m., while the COVID-19 State of National Emergency lasts. The following institutions, persons, activities and companies are exempted from the above: 1. Members […]

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COVID-19 Executive Decree 81 of March 20, 2020

30/03/2020

Suspension of employment contracts due to COVID-19 As of March 21, 2020, Executive Decree No. 81 of March 20, 2020 came into force and effect in Panama, which, in relation to employer-employee relations, it establishes, in summary, the following: 1. For the application of Numeral 8 of Article 199 of the Labor Code, the declaration […]

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