#Panama 🇵🇦 #BDS_LaborAlert: A New Digital Era for Internal Work Regulations with FERIT

A well-drafted Internal Work Regulation is more than just a legal mandate; it is a strategic preventive tool that provides legal certainty for both employers and employees.

In Panama, pursuant to Article 191 of the Labor Code, any company with ten or more employees is required to have an internal work regulation approved by the Ministry of Labor. 

Historically, the drafting of this document lacked a standardized official guideline, often leading to inconsistent and sometimes complex processes. However, this landscape has changed with the recent enactment of Ministerial Resolution No. DM-012-2026.

Understanding FERIT: Transforming the Regulatory Process

Through this resolution, the Ministry of Labor and Labor Development (MITRADEL) has adopted the Standardized Format for Internal Work Regulations (FERIT). This digital tool is designed to simplify, streamline, and modernize the creation of this essential document.

Key Features of FERIT:

• Digital nature: It functions as a smart, dynamic form hosted on the Ministry of Labor’s official website.
• Automation: Once the required information is provided, the system automatically generates a standardized PDF document.
• Purpose: FERIT seeks to standardize procedures to facilitate strict compliance with current labor regulations.
• Legal processing: Despite the automated format, the document must still undergo a formal approval through a judicial attorney-in-fact.
• Optional nature: While efficient, the use of this standardized template is not mandatory. Companies may still opt for customized templates, provided they remain in full compliance with the law.

This new regulation entered into force on March 6, 2026, marking a milestone in the digitalization of government services for the private sector.

If your company requires assistance with the drafting, updating, or registration of its Internal Work Regulation —whether through this new modality or through a customized approach— our team of legal experts is available to guide you through every step of the process.