2.  Labor law (also called labor law or
employment law) is the body of
laws, administrative rulings, and
precedents which address the legal
rights of, and restrictions on working
people and their organizations.
 As such, it mediates many aspects of the
relationship between trade
unions, employers and employees.

3.  This course aims that students know and
deal with Panamanian labor
law, regulations and by-laws.
 They will learn the rights and duties of
both part of the labor relation, and the
main concepts related to this matter.

4.  The history of Labor Law has to do with the
history of law which is the history of our
race, and the embodiment of its
experience.
 Since humans gathered to form society
they needed rules to smooth their
relationships.
 There has not existed and there never will
exist any organization of human society,
tribe or nation that has not been more or
less controlled by some recognized form of
law.

5.  In the great civilizations of antiquity there
were great aggregations of labor which
was not solely, though frequently it was
predominantly, slave labor.
 Some of the features of manufacture
and mining on a great scale arose,
producing the same sort of evils and
industrial maladies known and regulated
in our own times.

6.  One of the most important sources of the
law as we know it nowadays is the
Roman Empire.
 The Romans devised the most perfect
legal system which the world has ever
known. They conquered most part of the
ancient world by the power of their
arms, and we inherited their great
jurisprudence.

7.  Before the Industrial Revolution and the
introduction of mechanized
manufacture, regulation of workplace
relations was based on status, rather
than contract or mediation through a
system of trade unions.
 Serfdom was the prevailing status of the
mass of people, except where artisans in
towns could gain a measure of self
regulation through guilds.

8.  The main piece of labor legislation in
Panama is the Labor Code of 1971, which
deals with labor relations and the rights and
duties of employer and employee.
 The key concept of the Code is that of
'subordination', so that any relationship in
which one party is subordinated to the
other will fall within the terms of the Code,
whether or not it is described as
'employment'.

9.  Strikes are lawful under defined
circumstances and after a majority vote.
Conciliation is mandatory before a strike.
However, only around 11% of private sector
workers are unionized.
 Employers can terminate employment
during the first two years, but after that
employees have the protection of the
Code. Fixed-term contracts are possible.
The Code lists 'just causes' for dismissal, and
unlawful dismissal results in compensation
payments, which are not very high.

10.  There are minimum wage levels which vary
according to the seniority of the employee. There are
11 public holidays per year, and the statutory paid
vacation is 30 days.
 The employment market is quite closely regulated in
Panama: the law sets maximum percentages for the
employment of foreigners in a business according to
its sector. Usually the figure is 10%. However, foreign
companies are allowed to fill senior positions with
expatriates, up to a maximum of 15% of the staff. It
may be possible to agree a higher percentage with
the Ministry Of Labour, which is responsible for issuing
work permits.

11.  There is a contract  There are three main
between employer and types of contract that
employee, whether can be signed:
written down or not, and  The Definitive Period of
it can include elements Time Contract is
from a collective determined by the job to
agreement. Unions are be performed and is for
allowed, and can a maximum of one year.
negotiate on behalf of  The Indefinite or
employees collectively. Permanent Labor
Contract.
 Special circumstances
can call for a
probationary three-
month contract.

12.  For every 11 months of continuous employment employees are entitled
to an annual paid vacation of 30 days.
 The "Thirteenth Month" rule: In Panama workers get paid 13 months for
every twelve or one day's salary for every 11 days worked. The bonus is
payable in three installments in April, August and December.
 Termination of employment compensation is equivalent to a week's
salary for every year worked.
 An unjustified-cause termination payment: a lump-sum payment, the
value of which is based on labor code indemnification tables. After the
amount is paid, the employee must be rehired if he or she wishes.
 Paid maternity leave of 14 weeks ( paid by Social Security, not by the
employer) Working hours and rate of pay:
 For day shift hours the maximum working week is 48 hours, 42 for night
shift and 45 for a combination.
 Minimum wage standards average between $0.82 and $1.33 per hour
depending on area and occupation.