Procedural requirements for individual dismissals - Panama - 2010
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- Labour Code [LC], 30 december 1971 as last amended by Act No. 44 of August 1995 (Código del Trabajo) - available in Spanish
Date: 12 Aug 1995; view website » (view in NATLEX »)
Notification to the worker to be dismissed: written
- No statutory notice periods to be observed.
However, there is an exception for some specific categories of workers to which the "just cause" rule does not apply. Those workers can be dismissed without just cause provided that the employer gives 30 days' prior notice or pay the corresponding amount in addition to a payment amounting to compensation for unfair dismissal.
This rule applies to those workers with less than two years' uninterrupted service; domestic employees; permanent employees of small agricultural, fishing or manufacturing undertakings; seafarers serving on board vessels operating on international routes; apprentices; workers in retail sales establishments and in undertakings with five or fewer workers, except in the case of insurance establishments or real estate (art. 212 LC).
Pay in lieu of notice: No
- Except for those workers listed in art. 212 LC to which the "just cause" requirement does not apply.
Notification to the public administration: No
- Except for dismissals (individual and collective) on economic grounds: art. 215-216 LC Procedural requirements applicable to such dismissals are dealt with under the theme "Procedural requirements for collective dismissals for economic reasons".
Notification to workers' representatives: No
Approval by public administration or judicial bodies: No
- Except for dismissals (individual and collective) on economic grounds: art. 216 LC Procedural requirements applicable to such dismissals are dealt with under the theme "Procedural requirements for collective dismissals for economic reasons".
For dismissals based on any other authorized ground, the employer has the option of applying to the labour courts for prior authorization to dismiss. Such judicial authorization is however not compulsory.
Approval by workers' representatives: No
Notes / Remarks
As a general rule, the employer is not required to observe statutory notice period under the Panamanian labour legislation.
Depending on the reasons for dismissal, before proceeding to dismissal, the employer has either the obligation to obtain authorization from the labour administration (in case of an economic dismissal) or the option of applying to the labour courts for prior authorization to dismiss when dismissal is based on any other authorized ground.