[News Boquete] Panamanian Labor Law changes

Here are 2 new changes in the labor law in Panama that may affect some expats employing Panamanians.

The labor laws protect all and we want to be informed so that we do not encounter surprises at the termination of an employer/employee agreement.

 If you employ a Panamanian for domestic help (gardening, housekeeping, personal assistant) for 1 (one) day a week or more and they are in your employment for 1 (one) year then you are responsible for all benefits at the termination of their employment. This benefits include: vacation pay, 30 day notice penalty, employment longevity fee, decimo, and severance pay.

This is a change that affects domestic workers in a positive manner. However, there is a contract the employer and employee may sign and all this penalties will be eliminated and all parties can part amicably without the hassle of having the Labor Department involved.

The contract allows the employer to give the employee bonus and decimo even though it is not required.

It is recommended that the contract be renewed every 3 months and all payments be recorder with a signed receipt by the employer and employee.

The contract is used by Panamanians when employing domestic and temporary help and was shared with me by a Panamanian paralegal.

Please contact us if you would like a copy of the contract and more info.

Warm Regards,
Craig and Nancy Burgess
6683 8557

"While you are away, have the kindhearted stay"

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