COVID-19 Executive Decree 78 of March 16, 2020

Sanitary measures imposed in Panama due to COVID-19

As of March 16, 2020, Executive Decree 78 of March 16, 2020 came into force and effect in Panama, which, in relation to employer-employee relations, it establishes, in summary, the following:

1. Workers who are 60 years of age or older, as well as those who have chronic illnesses and pregnant women, shall take accumulated or advanced vacations for a minimum of 15 calendar days.
2. Article 197-A of the Labor Code regarding labor mobility may be applied by employers to workers who have contact with the general public.
3. Employers can inform their workers of the options to work in teleworking modalities, as defined by Law 126 of February 18, 2020, or work upon is required. Employers can also inform employees about the use of their vacations, for a minimum of 15 calendar days or work permits to which the worker is entitled to, in order to prevent or care for those affected by COVID-19.
4. Workers must abide by the employer’s instructions regarding the options indicated in the previous numeral 3.
5. The employer may make use of the sanctioning rights granted by its Internal Work Regulations against the worker who fails to comply with the above. If the employer does not have Internal Work Regulations, it may impose a suspension for 1 to 3 days without pay, for the non-compliance of the above.

Permanent Resident Visa as a Qualified Investor


The subcategory of Permanent Resident as Qualified Investor has been created in the Republic of Panama within the immigration category of Permanent Resident for Economic Reasons. This subcategory was created by Executive Decree No. 722 of October 15, 2020 promulgated through Official Digital Gazette No. 29136 of October 16, 2020, the date of its entry […]

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Law 159 of August 31, 2020


Through Law 159 of August 31, 2020, the Special Regime for the Establishment and Operation of Multinational Companies for the Provision of Services Related to Manufacturing (EMMA), was created. Its purpose is to attract and promote investments in production processes and the generation of jobs and technology transfer, as well as to make Panama more […]

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Law 157 of August 3, 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


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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