Panama: Gradual reopening of companies

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According to Executive Decree No. 96 of May 15, 2020, the Ministry of Labor of Panama has ordered that, for the operation and gradual reactivation of companies and/or activities, the employer must complete the digital form on the reactivation of contracts, enabled by the Ministry of Labor on its website.

In addition, Executive Decree No. 96 establishes that any employer that reactivates its operation, with the authorization of the Ministry of Health, may agree with the reinstated employees to reduce the workday, complying with the formalities of Executive Decrees 71 of March 2020 and Executive Decree No. 85 of April 2020.

The Labor Inspection Directorate of the Ministry of Labor may verify that the employees who are working in the companies correspond to employees who have been reinstated, according to the report made on the reactivation of contracts.

On the other hand, if the company fails to comply with the sanitary and/or labor measures that have been ordered by the Ministry of Health and/or Ministry of Labor for its reopening, they may be sanctioned by any of these entities, according to their respective competences.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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