The Executive Branch, through Executive Decree No. 11 dated November 11, 2025 (enacted on November 12, 2025), regulates Articles 485, 486, 487, and 488 of the Labor Code of Panama, specifically regarding the right to strike in essential public services.
With this new Executive Decree, Executive Decree No. 25 of June 5, 2009, and Executive Decree No. 132 of May 3, 2010, are repealed. The purpose is to ensure the continuity of essential public services provided by state entities and companies in which the Government holds equity participation, thereby minimizing the negative effects of strikes on the provision of such services to the population.
It should be noted that this new Decree expands the definition of essential public services, among which we may mention:
- Land and mobile telephone communications.
• Electric power services, including the generation, transmission, and distribution of electric power, provided by State-owned public enterprises, mixed-capital companies, or private companies operating under a license or concession.
• Public passenger transportation services provided by private parties under licenses granted by the Government, and maritime, land, freight, railway, and air transportation.
• Loading, unloading, and handling services for goods destined for land or maritime transport.
• Customs services related to land, maritime, and air transportation of goods and passengers.
• Public health services provided by the Government through the Ministry of Health or the Social Security Administration.
• Drinking water production, distribution, and supply services provided by IDAAN.
• Urban and household sanitation services.
• Agricultural and agro-industrial food production services for human consumption.
• Cemetery services offered by Municipalities.
• All services provided by companies contracted by the Government for the construction of public works and social interest projects.
The procedure for declaring a strike in companies that provide public services, in order to avoid a full shutdown, is as follows:
- Provide notice of the strike declaration to the corresponding Regional Director’s Office or the General Labor Director’s Office at least eight calendar days in advance.
- Inform the same offices, within the same period, of the emergency shifts that will continue providing the public service at the affected workplaces.
- Emergency shifts must comprise at least twenty percent (20%) and up to thirty percent (30%) of the total workforce of the concerned entity, company, establishment, or business.
- In the case of a general strike, such shifts must also comprise between twenty percent (20%) and thirty percent (30%) of the total workforce of the same trade or occupation within the concerned entity, company, establishment, or business.
- The General or Regional Director’s Office may increase the number of workers required for emergency shifts up to thirty percent (30%) if the percentage agreed upon by the strikers is considered insufficient.
The Decree authorizes the Government, at its sole discretion, to assume the management or administration of the public service provided by the entity, company, establishment, or business affected by the strike for as long as necessary, pursuant to Article 517 of the Labor Code. This provision could potentially create conflicts with private companies.
The Decree also references Article 452 of the Labor Code, which authorizes MITRADEL to order arbitration after the strike has begun. Furthermore, it establishes that the decision issued by the Regional or General Labor Director’s Office must be immediately notified to the Company’s representatives and the union authorized to negotiate the list of demands, and may be appealed before the Superior Office of the Ministry of Labor and Workforce Development.
It is further noted that the decision resolving the dispute or arbitration must also order the immediate suspension of the strike.
This Decree entered into force the day after its enactment.
Please contact us if you have questions or require assistance about this or any other labor matters.