According to Resolution No. 11 of March 13, 2020, the Cabinet Council has declared a state of national emergency in the Republic of Panama, as a consequence of COVID-19. The Government through its different branches, has issued a handful of Executives Decrees in order to authorize and order extraordinary measures to face the situation. This is especially the case for the Panamanian Labor Ministry.

As established on Executives Decrees issued as of March 13, 2020, the latest published on the Official Gazette of March 16, 2020, employers are obliged, in addition to the obligations that arise from the employment agreement and Labor Code, to:

• Create the hygiene, health and safety at work committees, made up of workers and employers, that will carry out the hygiene plan in the jobs according to the nature of the functions.
• Apply all protocols to ensure hygiene and health in all work premises in order to prevent COVID-19.
• Apply teleworking (according to Law 126 of February 18, 2020), if physical presence of the employee is not required.
• Make use of vacations (accumulated or advanced) so that workers over 60 years of age, patients with chronic illnesses and pregnant employees for a minimum of 15 calendar days.

With regards to employees returning from any work travel, by any means of transportation (land, sea or air), if the employee is returning from a risk area he/she has to report himself before Sanitary Authorities which will decide if the employee must remain in observation and surveillance under a quarantine period.

In any case, the quarantine will have to be ordered by a Sanitary Authority and the condition will be certified through the Regional Health Directorates. Certificates issued by the Regional Health Directorates must be delivered to the Social Security for the purposes of processing the disability (medical leave and benefits) before this institution.

As a preventive measure, employers are allowed to apply article 197-A of the Labor Code and order labor mobility of all employees in charge of customer support. In addition, if necessary the employer is authorized to reduce working hours, as established in article 159 of the Labor Code.

As recommended and required by the Ministry of Labor, each company, in agreement with the worker, will formalize any of the measures described, based on the relevant legal regulations.

To obtain legal advice on this matter or any other on Employment & Labor Law, please do not hesitate to contact us.