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Panama - Working time - 2011


LAST UPDATE

15 December 2011

SOURCES


Name of Act

Constitution of the Republic of Panama

Name of Act

Ministerial Decree N° 252 promulgating the Labour Code, of 30 December 1971 (Gaceta Oficial N° 17040 Extraordinary, 18 February 1972), as amended up to Law n°68 of 26 October 2010.
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LEGAL DEFINITIONS


Working time/working hours

"Hours of work" shall mean the period of time that the worker shall remain at the disposal of the employer.
The following shall be deemed to be hours worked in respect of which wages are payable: 1) the time during which the worker is obliged to remain exclusively at the disposal of the employer; 2) the time during which a worker remains inactive during the hours of work, where such inactivity is not dependant on the worker’s own wishes and is not due to any of the statutory causes for suspension of the contract of employment; 3) the time necessary for meals in the course of the hours of work, in cases where, on account of the nature of the work, the worker has to remain in the workplace or on the premises where he performs the work.
Labour Code Art.33, 34

Employee/worker

"Worker" shall mean any natural person who by a contract, either written or oral, individual or collective, express or implied, renders services or performs work under the subordination or dependence of another person.
Labour Code Art.82

Employer

"Employer" shall mean any legal or natural person that profits from the service rendered or work performed by the worker.
Labour Code Art.87

Overtime/overtime work

Any hours worked above and beyond the limits of hours of work prescribed by law or those imposed by a contract shall be treated as overtime.
Labour Code Art.33

Night work(er)

"Night work" shall mean the work performed in the interval between 6 p.m. and 6 a.m. Working hours or shifts including more than three hours during the night shall be considered as night work.
Labour Code Art.30

Domestic worker

"Domestic workers" shall mean those workers who on a regular and continuous basis perform services of cleaning and assistance and other similar tasks, for a person and/or for his family in a household.
Labour Code Art.230

Young worker

Young worker is the worker who has at least 14 years old and has not yet attained 18 years old.
Under 15 years old cannot perform work if they have not completed the primary education.
It is expressly forbidden to employ under 18 years old workers in unhealthy or unsafe for the physical or moral integrity or in night work, in overtime working days, in the weekly rests periods or in public holiday days.
Young workers in between 12 and 15 years old may be only employed in tasks not requiring a physical strain and not within the school hours.
Labour Code Art.117,118,119,120

NORMAL HOURS LIMITS


Daily hours limit


General limit

The hours of work shall not exceed 8 per day.
Constitution of the Republic of Panama Art.66
Labour Code Art.31
Historical data (year indicates year of data collection)
  • 2009: 8 hours
  • 2007: 8 hours

Special categories


» Night work

The hours of work shall not exceed 7 hours per day during night-time, and not more than 7.5 hours per day for work performed during day-and-night time work, and in these cases shall be considered as 8 hours for remuneration purposes.
Labour Code Art.31
Constitution of the Republic of Panama Art.66

» Young workers

The hours of work shall not exceed 6 hours per day for workers under 16 years old and 7 hours per day in case of workers between 16 and 18 years old.
Labour Code Art.122

» Domestic work

Domestic workers are not subject to any limitation of working hours.
Labour Code Art.231(2)

Weekly hours limit


General limit

The hours of work shall not exceed 48 per week.
Labour Code Art.31
Constitution of the Republic of Panama Art.66
Historical data (year indicates year of data collection)
  • 2009: 48 hours.
  • 2007: 48 hours
  • 1995: 48 hours.

Special categories


» Night work

The hours of work shall not exceed 42 hours per week during night-time, and not more than 45 hours per week for work performed during day-and-night time work.
Labour Code Art.31

» Young workers

The hours of work shall not exceed 36 hours per week for workers under 16 years old and 42 hours per week in case of workers between 16 and 18 years old.
Labour Code Art.122

» Domestic work

Domestic workers are not subject to any limitation of working hours.
Labour Code Art.231.2

OVERTIME WORK


Criteria for overtime


General

Overtime work may be scheduled if the work is not possible to be carry out within the ordinary working hours.
The employer shall be bound to employ a sufficient number of properly manned shifts or work teams to complete the work within the normal working hours respecting the limits laid down.

Workers are not obliged to perform overtime work unless in the following circumstances:
1. When as a result of an accident or inminent risk for the life or the existence of the undertaking, or of the goods or similar reason, overtime working hours are required for repairing or avoiding the damage.
2. When it is provided by collective agreement and is confirmed by individual statement.
Labour Code Art.35,36

Limits on overtime hours


General limits

No worker shall perform more than 3 hours per day and 9 hours per week of overtime work.
Labour Code Art.36
Historical data (year indicates year of data collection)
  • 2009: The following limits shall apply to overtime work: 1. overtime shall be prohibited in the case of work which is of a dangerous or unhealthy nature; 2. the employer shall be bound to employ a sufficient number of properly manned shifts or work teams to complete the work within the normal working hours respecting the limits laid down. 3 hours per day and 9 hours per week
  • 2007: 3 hours per day and 9 hours per week
  • 1995: 3 hours per day and 9 hours per week.

Restrictions/exceptions

Overtime work shall be prohibited in the case of work which is of a dangerous or unhealthy nature.
Labour Code Art.36.1

Compensation for overtime work


Overtime rate(s)

The time of work exceeding the normal limits of work shall be remunerated as follows;
With a 25% increase over the ordinary wage when the overtime working hours are performed during day-time.
With a 50% increase when the overtime work are performed during night-time.
With a 75% increase when the overtime work are performed as a prolongation of the night work hours or in excess of the day-and-night time working hours.
Labour Code Art.33,36
Historical data (year indicates year of data collection)
  • 2009: 25% increase (day hours) 50% increase (night hours) 75% increase (prolongation of night work or day-and-night work that started during the night)
  • 2007: 25% increase (day hours) 50% increase (night hours) 75% increase (prolongation of night work or day-and-night work that started during the night)
  • 1995: 25% premium during working days, 50% at night or on weekly rest days and public holidays. 75% for overtime beyond legal limits or following night work.

Special categories


Domestic work

Domestic workers are not subject to any limitation of working hours.
Labour Code Art.231.2

Night work

The time of work exceeding the normal limits of work shall be remunerated as follows when is performed during the night;
With a 50% increase when the overtime work are performed during night-time.
With a 75% increase when the overtime work are performed as a prolongation of the night work hours or in excess of the day-and-night time working hours.
Labour Code Art.33, 36

Young workers

It is expressly forbidden for worker under 18 years old the performance of extra days of work, on Sundays or on any public or national holiday.

It is prohibited for young workers under 16 to work overtime.
Labour Code Art.36(2), 120

SCHEDULES

Relevant provisions on "schedules" have been not identified.

REST PERIODS


Rest breaks


General provisions

Each working day shall be interrupted by a rest break of not less than half an hour and not more than two hours.
Labour Code Art.39(1)
Historical data (year indicates year of data collection)
  • 2009: Each working day shall be interrupted by a rest break of not less than half an hour and not more than two hours.
  • 2007: Every employer shall be bound to give the workers the necessary and normal rest breaks between work periods in accordance with the following rule: each working day shall be interrupted by a rest break of not less than half an hour and not more than two hours.
  • 1995: 30 minutes and not more than 2 hours.

Special categories


» Night work

In case of work performed during the night or during day-and-night time, the parties may agree to schedule the enjoyment of the rest breaks in a different manner to not interrupting the production of the undertaking, provided that is not exceeding the limits on working hours.
Labour Code Art.39(1)

Daily rest periods

General provisions on daily rest have not been identified.

Special categories


» Shift work

Workers employed in shift work shall enjoy a minimum daily rest of 12 consecutive hours
Labour Code Art.39.3

» Domestic work

Domestic workers are entitled to enjoy a continuous daily rest period from 9 p.m to 6 a.m.
Labour Code Art.231(2)

Weekly rest periods


Duration


» General

The weekly rest period shall have a duration of 24 hours and should fall on the Sunday.
Labour Code Art.41
Historical data (year indicates year of data collection)
  • 2009: Not less than 24 hours.
  • 1995: 1 day.

Day specified


» General

The weekly rest day should be enjoyed preferably on Sunday.
Labour Code Art.41

» Exceptions

In cases in which the work needs to be carried out on a Sunday, the weekly rest day may be enjoyed on another day, upon agreement of the employer and the worker, and shall consist in 24 consecutive hours of rest.
Labour Code Art.41

Work on weekly rest day


» Criteria

The working places shall be close on Sundays, with the following exceptions:
1) Establishment of public services.
2. Farms and livestock.
3. Pharmacies, hotels, restaurants and snack bars.
4. The entertainment and public recreation.
5. Those engaged in selling food at retail.
6. Commercial establishments unpopulated places that function as its location service centers or agricultural areas.
7. Those who, on account of its nature, the interruption of work during those days, can cause serious damage to health or public interest or the national economy, after authorization by the Department of Labor.
Labour Code Art.42

» Compensation (for working on a rest day)

A worker who performs work on a weekly rest day shall be entitled to a compensatory rest day.

All work done on a Sunday or other compulsory weekly rest day shall be paid with an increase of 50% over the ordinary wage, without prejudice of the entitlement to compensatory rest.
Labour Code Art.41, 48

» Prohibitions and limitations

Young workers under 18 years old shall not be employed on Sundays or any public or national holiday.
Labour Code Art.36(2), 120(2)

Special categories


» Domestic workers

Domestic workers are entitled to enjoy a weekly rest period. However no specifications about the duration of such rest.
Labour Code Art.231(2)

ANNUAL LEAVE AND PUBLIC HOLIDAYS


ANNUAL LEAVE

Every worker shall be entitled to enjoy a paid annual leave period.
Labour Code Art.52

Qualifying period

In order to be entitled to enjoy annual leave, the worker shall have performed at least 11 months consecutive months of work.
Labour Code Art.54

Duration


» General

Workers shall be entitled to enjoy 30 days of annual leave.
Labour Code Art.54(1)
Historical data (year indicates year of data collection)
  • 2009: The worker is entitled to 30 days of annual leave for 11 months worked.
  • 2007: 30 days of annual leave for 11 months worked
  • 1995: 30 days (for every period of 11 continuous months of work)

Payment


» Amount

The amount due to for annual leave shall be of one month of salary when the worker is employed in monthly basis and the amount corresponmding to 4 weeks and one third, when the worker is employed on weekly basis.
When the wage of the worker is calculated as a result of variable incomes, the amount shall be calculated according to the average of the ordinary and extraordinary incomes over the last 11 months or the amount corresponding to the wage of the last month if more favourable.
Labour Code Art.54.2

» Date of payment

The date of payment of the amount due to the annual leave period shall be paid with 3 days in advance of the date in which the leave commences.
Labour Code Art.54.5

Schedule and splitting

The employer shall schedule the periods of annual leave with two months in advance of the date in which the worker shall commence to enjoy such leave, and shall take into account the interest of the worker and the undertaking.

The period of annual leave may be split into two periods of the same duration if so provided under collective agreement and upon agreement between the parties in each case.
Labour Code Art.56,57

Work during annual leave

Annual leave is granted to workers for rest and recreation, and it is unlawful for a worker to waive his annual leave entitlement in return for remuneration or any other compensation.
Labour Code Art.59

Special categories


» Domestic work

Domestic workers are entitled to enjoy a paid annual leave period. However no specifications about the duration of such leave.
Labour Code Art.231(2)

PUBLIC HOLIDAYS


Number and dates

10 days.

1 and 9 January, Fat Tuesday, Holy Friday, 1 May, 3, 10 and 28 November, 8 December, Christmas Day, plus the day that the President of the Republic takes possession;
Labour Code Art.46(1,2,3,4,5,6,7,8)

Payment

Public holidays shall be remunerated with the ordinary rate of payment.
Labour Code Art.45

Work on Public Holidays


» Criteria

The working places shall be close on public holidays and, with the following exceptions:
1) Establishment of public services.
2. Farms and livestock.
3. Pharmacies, hotels, restaurants and snack bars.
4. The entertainment and public recreation.
5. Those engaged in selling food at retail.
6. Commercial establishments unpopulated places that function as its location service centers or agricultural areas.
7. Those who, on account of its nature, the interruption of work during those days, can cause serious damage to health or public interest or the national economy, after authorization by the Department of Labor.
Labour Code Art.42

» Compensation

Work done on public holidays or day of national mourning shall be paid with an increase of 150% over the normal rate of payment, without prejudice to the entitlement of compensatory rest.
Labour Code Art.49

EMERGENCY FAMILY LEAVE

The employer shall provide the worker with a paid leave, with advanced notice and subsequent verification, for attending medical checks up of his under two years old sons.
Labour Code Art.128(30)

PART-TIME WORK

Relevant provisions on "part-time work" have been not identified

NIGHT WORK


Criteria for night work

"Night work" shall mean the work performed in the interval between 6 p.m. and 6 a.m. Working hours or shifts including more than three hours during the night shall be considered as night work.
Labour Code Art.30

Limits


Daily hours limit

The hours of work shall not exceed 7 hours per day during night-time, and not more than 7.5 hours per day for work performed during day-and-night time work, and in these cases shall be considered as 8 hours for remuneration purposes.
Labour Code Art.31

Weekly hours limit

The hours of work shall not exceed 42 hours per week during night-time, and not more than 45 hours per week for work performed during day-and-night time work.
Labour Code Art.31

Rest breaks

In case of work performed during the night or during day-and-night time, the parties may agree to schedule the enjoyment of the rest breaks in a different manner to not interrupting the production of the undertaking, provided that is not exceeding the limits on working hours.
Labour Code Art.39(1)

Special categories


Young workers

It is expressly forbidden to employ under 18 years old workers in night work.
Labour Code Art.120

Pregnant workers/recent birth

Pregnant workers who are employed in rotating shifts shall not perform work during the night.
Labour Code Art.116

SHIFT WORK


Criteria for shift work

Shift work is permitted in certain circumstances, including when the duration of the production process exceeds the permissible duration of the working day and to increase the volume of output or services.
Labour Code §103

Daily rest period

Workers employed in shift work shall enjoy a minimum daily rest of 12 consecutive hours.
Labour Code Art.39.3

ON-CALL WORK

Relevant provisions have been not identified.

FLEXITIME

Relevant provisions have been not identified.

CASUAL WORK

Relevant provisions have been not identified.

SHORT-TIME WORK/WORK-SHARING

Relevant provisions have been not identified.

RIGHT TO CHANGE WORKING HOURS

Relevant provisions have been not identified.

INFORMATION & CONSULTATION


Information

Employers are required to display a notice showing working hours, the division of the working day, shifts, days of weekly rest and the names of workers on leave.
Labour Code Art.128(10)

Results generated on: 03rd September 2014 at 09:11:13.
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