Occupational Impact in Panama During and After Covid-19

With the impact of the pandemic, the Panamanian government introduced a series of legal measures to protect both employees and employers. El Executive Decree 71 of 2020 was one of the main instruments that established specific provisions to regulate remote work, work suspensions, and changes in employment conditions. Below, we dive into some of the most important changes:

• Teleworking: It was formalized as a valid modality under the Labor Code, offering flexibility to companies and collaborators.
• Suspension of contracts: A temporary solution for employers who faced economic difficulties, preserving the employment relationship until business recovery.
• Reduction of working hours: It allowed working hours and salaries to be adjusted proportionately during critical periods.

Key documents governing these changes include the Panamanian Labor Code and special decrees issued in response to the pandemic.

Teleworking emerged as the main solution for maintaining productivity in times of confinement. However, this modality also introduced new challenges for companies and workers. According to the Decree-Law 126 of 2020, regulations were established for teleworking, such as:

• The need for written agreements between employer and employee
• Respect for the working day established by the Labor Code.
• The employer's duty to provide the necessary tools for the performance of remote work.

However, its implementation revealed challenges such as the impact on mental health due to isolation, time management and technological inequality between sectors.

Another aspect affected by the pandemic was the management of holidays, work schedules and contracts. Here we explain:

1. Forced holidays:

Many companies chose to bring their employees' vacations forward during months of low demand.

2. Reduction of schedules:

The government allowed the progressive reduction of working hours as a measure to preserve jobs during the crisis.

3. Temporary suspension of contracts:

This measure provided for in Decree Law 78 guaranteed that employers could retain their employees without incurring labor violations, provided that the appropriate notification procedure was complied with.

In order to adapt to the new work landscape, here are some recommendations for both employers and workers:

• For employers: Review employment contracts and update them according to new regulations. Implement cybersecurity policies for teleworking and promote the digital well-being of employees.
• For workers: Familiarize yourself with national labor laws. Bet on the development of digital skills that enhance their employability.

The government of Panama implemented several measures to mitigate the effects of the pandemic in the workplace:

• It offered wage subsidies and soft loans for affected companies.
• He designed digital platforms such as the Ministry of Online Labor to facilitate labor procedures.
• It established exceptional rules to prevent mass layoffs.

These actions were essential to protect the national economy and stabilize the labor market.