Phone(+507) 387-0620
Altos del Romeral, Ave. Santa Elena and Andalucía Street, No. 53. Panamá

Labor Law

Labor Law

The legal relationship between the employer and the employee is one regulated by principles and rules that are very different from those that apply to contractual relationships. In Latin America (Panama included), Labor legislation starts from the fundamental premise that the labor relationship is one where the employee is in a subordinated situation with regard to the employer, and therefore at a disadvantage.  From this concept, a series of special principles and rules that govern the labor relationship arise. These require special consideration, different from those that apply to civil or commercial relationships.

It is for this reason that every business enterprise needs to contemplate in detail the legal aspects of its relationships with its personnel, since before the start of each labor contract, during its duration and at its termination.  We give you the specific advice you need in this area of the Law, including:

  • Drafting and revision of individual labor contracts;
  • Recommendation about the type of labor contract most appropriate for each relationship (indefinite duration, definite duration, or for completion of a project);
  • Creation of the Business-specific Work Regulations (required by Law for any businesses with ten or more employees);
  • Work Permits for foreign workers;
  • Negotiation of collective agreements with Unions;
  • Advice about Termination of a labor relationship, including the preparing of the respective document (Letter of Dismissal or Termination by Mutual Agreement), and the relevant statutory benefits to be paid to the dismissed employee;
  • Representation in Labor Mediation processes, or litigation in court.