Panama Employment Lawyer
Employment relationships are among the most sensitive areas of any business. At MYD we advise Panamanian and international employers on hiring, managing and, when necessary, ending employment relationships in line with Panamanian labor law, while keeping the risk of claims to a minimum.
We draft and review indefinite-term, fixed-term and project-based employment contracts, along with confidentiality, non-compete and intellectual property clauses. Each contract is tailored to the actual role and to the applicable rules, so the company has clear terms from day one.
We prepare internal work rules, HR policies and disciplinary procedures, and support their approval by the labor authority where required. We also carry out employment compliance reviews to spot risks in working hours, benefits, vacation, social security and personnel files, and recommend the corrections needed.
We advise the company before it decides to end an employment relationship: we review the grounds, the correct procedure, the supporting documents and the payments owed. We prepare termination letters, mutual separation agreements and final settlements, aiming to close the relationship in an orderly way and with as little exposure as possible.
We handle the hiring of foreign employees, including their work permits and immigration status, together with our immigration practice. When a dispute arises, we represent the employer in conciliation, negotiations and proceedings before the labor authorities and courts.
Preventive employment advice for employers
Panamanian labor law gives employees broad protection, so mistakes in hiring, managing or letting staff go can quickly turn into claims and significant costs. As employment lawyers in Panama, we take a preventive approach so your company stays compliant and makes well-informed decisions.
For businesses setting up in Panama, we start with your very first hire: choosing the right type of contract, preparing onboarding documents and explaining your obligations around social security, working hours, wages, vacation and other benefits. For established companies, we run employment compliance reviews and update contracts, internal work rules and policies.
When an employment relationship has to end, we advise you before you act, so the procedure is correct, the grounds are properly documented and the right payments are made. We prepare mutual separation agreements and represent employers in conciliation and before the labor authorities and courts.
Hiring foreign nationals also requires work permits and the right immigration status. Because we have an in-house immigration practice, one team handles both the employment and the immigration side, so your company can bring in international talent smoothly and safely.
We also offer ongoing employment advice for companies that want a trusted adviser on hand day to day. We answer questions about vacation, leave, overtime, changes in role or pay, disciplinary action and personnel records before they turn into problems.
When a company goes through a reorganization, acquires another business or changes employer of record, we assess the impact on existing contracts and on employees' accrued rights, and prepare the communications and documents needed for an orderly transition with as little employment risk as possible.
Many of our employment clients are international companies opening their first office in Panama. We explain how local rules differ from what they are used to at home, from probation periods and mandatory benefits to how terminations are handled, so managers abroad can make decisions with confidence. Policies, handbooks and contracts can be prepared in English, with Spanish versions where required for filing or for local staff, and we stay available as the team grows.
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Frequently asked questions
What types of employment contracts exist in Panama?
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Broadly, contracts can be indefinite-term, fixed-term or for a specific project. Each has its own rules, so we help you choose the right one for every role.
Does my company need internal work rules?
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They are highly advisable and, in some cases, required. Clear rules set out conduct standards, schedules and disciplinary procedures, and make managing staff much easier.
How can I end an employment relationship safely?
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Before giving notice, review the grounds, the paperwork and the payments owed. We guide you through it so the process is correct and the risk of a claim is reduced.
Can you help me hire a foreign employee?
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Yes. We handle the work permit and the employee's immigration status alongside the employment contract, together with our immigration team.
Will you represent my company if an employee files a claim?
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Yes. We represent employers in conciliation, negotiations and proceedings before the labor authorities and courts.
Do you advise foreign companies hiring in Panama?
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Yes. We explain an employer's obligations in Panama in plain English and prepare all the documentation you need.
What is an employment compliance review?
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It is a review of contracts, payroll, policies and personnel files to spot risks and fix them before they lead to claims or penalties.
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