Labor Reactivation And Suspension Measures In Panama

Law No. 201 of February 25, 2021, defined certain temporary measures to allow companies the gradual reinstatement of workers with suspended contracts, establishing a staggered reinstatement by economic sector.

As a result, the primary sector completed this function in May of this year.  Subsequently, the companies that are part of the secondary sector must complete the process of reincorporation of all personnel by August at the latest.  On the other hand, those companies that are part of the tertiary sector, meaning a significant number of service providers, must do the same by October of the current year.

We remind you that to keep the suspension measure effective, the employer must submit its request monthly before the Ministry of Labor, no later than 10 working days before the expiration of the extension granted.  Likewise, it must be remembered that, to formalize the reinstatement, the employer must comply with the notification process before the Ministry of Labor, through the application available on its website.

Link for contract reactivation:

https://appstrabajo.mitradel.gob.pa/AplicativoDesistimientos

Link for extensions of the suspension measure:

https://appstrabajo.mitradel.gob.pa/AplicativoProrrogas  

We hope this information is useful.  In case you have any questions or require legal advice, please contact.

By

Carlos Pinto

CEO - PR Lawyers