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Tuesday, Mar 02, 2021
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Temporary suspension of employment contracts in Panama extended for 30 days

Temporary suspension of employment contracts in Panama extended for 30 days

The National Government automatically extended, for a period of 30 calendar days, the temporary suspension of the effects of employment contracts in Panama.
According to the Decree published this Thursday, July 2, the extension applies to companies whose operations have not been reactivated according to the measures of gradual return to economic activity.

The extension will come into effect upon expiration of the authorization of the suspension of the effects of the work contracts or the immediately previous extension.

Extensions of the temporary suspension of the effects of the employment contracts corresponding to companies not included in Article 1 of this Decree, will be processed in accordance with the provisions of Executive Decree No. 95 of April 21, 2020 .

While the companies whose reactivation has been authorized, that keep workers with suspended contracts, must request the Ministry of Labor and Labor Development (Mitardel), the extension of said suspensions, according to the provisions of Decree No. 95 .

As of Monday, July 13, 2020, requests for extensions will be processed through the Panama Digital platform ( www.panamadigital.gob.pa ), this system is also enabled to deal with requests for extensions that have not been properly processed through the technological mechanisms established prior to the validity of this Decree.

The extension will take effect from its promulgation.

The suspension of employment contracts was regulated on March 20, after the closure of commercial premises was ordered as a mitigation measure for the pandemic of the new coronavirus COVID-19 in Panama.
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