#Panama 🇵🇦 #BDS_LaborAlert: New Rules for Verifying the Authenticity of Certified Medical Leaves

Executive Decree No. 29 of August 19, 2026, published in Official Gazette No. 30,593, amended paragraph 8 of Article 8 and Article 13 of Executive Decree No. 17 dated August 11, 2025, which established the procedure for requesting verification of the authenticity of certified medical leaves.

Although the new regulation does not replace the aforementioned Decree, it supplements it through specific changes aimed at strengthening the verification process and establishing new tools and procedures when potential irregularities are detected.

What Did Executive Decree No. 17 of 2025 Establish?

Executive Decree No. 17 of 2025 establishes a procedure for verifying the authenticity of certified medical leaves, with the participation of the regional health authorities.

Its purpose is to enable verification of the authenticity of these documents and strengthen the control and traceability mechanisms relating to certified medical leaves.

What Changes Under 2026 Executive Decree No. 29?

• Potential Criminal Conduct

When, during the verification process, the Regional Health Authority identifies any conduct that may qualify as a criminal offense, it must report the matter to the Public Prosecution Office by filing the corresponding criminal complaint.

This reinforces the importance of authenticity verification when there are circumstances that may go beyond the administrative field and potentially result in criminal consequences.

• New Official Form

Article 13 of 2025 Executive Decree No. 17 is amended and the “Certified Medical Leave Authenticity Verification Form” is approved. This form must be used by the competent administrative units during the verification process.

Among other matters, the form includes information regarding:

Clinic or hospital, physician, certificate, medical leave dates, existence of a copy, observations, and requested documentation.

What Do We Recommend to Employers?

Continue Using the Existing Verification Procedure.

The entry into force of Decree No. 29 does not mean that the procedure established under the 2025 Decree No. 17 should be discontinued. It is important to continue using that procedure while taking into account the new provisions introduced in August 2026.

In particular, we recommend:

• Properly documenting each case in which there are reasonable doubts regarding the authenticity of a certified medical leave.
• Retaining supporting documentation relating to the certificate received, communications with the employee, and the verification request submitted to the competent authority.
• Using official verification channels and avoiding employment-related measures based solely on unconfirmed suspicions.
• Following up on the outcome of any verification process, particularly when the authority identifies circumstances that may constitute potential criminal conduct.

Executive Decree No. 29 of 2026 supplements, but does not replace, 2025 Executive Decree No. 17. Companies must continue applying the existing procedure for verifying certified medical leaves and adapt their internal processes to the new provisions, including the official form and the new mechanism for referring matters to the Public Prosecution Office when the regional authority identifies potential criminal conduct.

Please do not hesitate to contact us if you have any questions regarding this new decree.