--- title: "#Panama 🇵🇦 #BDS_LaborAlert: Termination of Employment Relationship Due to Worker's Retirement" description: Termination of Employment Relationship Due to Worker's Retirement. image: https://publicaciones.bdsasesores.com/hubfs/Plantilla%20Fotos-May-29-2023-07-34-23-5335-PM.jpg --- [![BDS blanco ingles](https://publicaciones.bdsasesores.com/hs-fs/hubfs/BDS%20blanco%20ingles.png?width=100&height=50&name=BDS%20blanco%20ingles.png "BDS blanco ingles")](https://www.bdsasesores.com) - [Team](https://www.bdsasesores.com/en/team/) - [Services](https://www.bdsasesores.com/en/services/) - Blog - [Labor Law](https://publicaciones.bdsasesores.com/en-us/blog) - [Corporate Law](https://publicaciones.bdsasesores.com/apriori-blog?hsLang=en-us) - [Store](https://www.bdsasesores.com/en/tienda/) - [Contact](https://www.bdsasesores.com/en/contact/) - English - [English](https://publicaciones.bdsasesores.com/blog?hsLang=en-us) - [Español](https://publicaciones.bdsasesores.com/blog?hsLang=es-cr) ![](https://publicaciones.bdsasesores.com/hs-fs/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/logo-BDS-blanco-jul25.png?width=200&name=logo-BDS-blanco-jul25.png) ##### May 31, 2023 12:04:12 PM ##### 1 min. read # #Panama 🇵🇦 #BDS\_LaborAlert: Termination of Employment Relationship Due to Worker's Retirement The retirement of a worker in our country involves relevant legal considerations. Firstly, it should be noted that there is no prohibition for a retired person to continue working; in such cases, the company must continue deducting the employee-employer contributions from their salary. Previously, it was required for the worker to prove the cessation of work in order to opt for retirement, but this requirement was declared unconstitutional in 2007.   Despite this decision, the Labor Code establishes that retirement is a fair cause for termination of employment. However, a problem arises regarding the timeframes for dismissal. According to Article 13, the employer has a **two-month period** to dismiss the worker upon occurrence of the events that resulted in termination. Labor courts have interpreted that this period begins to run **from the moment the worker is officially notified** of their retirement.   This situation creates complications for companies, as they often remain unaware of when the worker is notified about his/her retirement. Furthermore, there is an additional risk when dismissing a retired worker who may be protected by a **special protection regime** due to chronic or degenerative illnesses. In such cases, prior judicial authorization is required to carry out a justified dismissal.   Undoubtedly, the termination of the employment relationship due to retirement poses serious legal challenges. Companies must proceed with caution when addressing this situation and consider the available options, as well as seek the necessary legal advice to mitigate potential associated risks. [![I have a question](https://no-cache.hubspot.com/cta/default/6302490/b09e136c-59db-46ae-bb16-f7b6bb7d7ffa.png)](https://cta-redirect.hubspot.com/cta/redirect/6302490/b09e136c-59db-46ae-bb16-f7b6bb7d7ffa) [« Volver](https://publicaciones.bdsasesores.com/blog?hsLang=en-us) [Littler Global](https://publicaciones.bdsasesores.com/en-us/blog/tag/littler-global), [Human Resources](https://publicaciones.bdsasesores.com/en-us/blog/tag/human-resources), [Labor Law](https://publicaciones.bdsasesores.com/en-us/blog/tag/labor-law), [Legal Talent Hub](https://publicaciones.bdsasesores.com/en-us/blog/tag/legal-talent-hub) ## Otros artículos #### #Honduras 🇭🇳 #BDS\_LaborAlert: Considerations for Workers Affected by Tropical Storm Sara Tropical Storm **Sara** has created adverse weather conditions in various regions, including heavy... #### #ElSalvador 🇸🇻 #BDS\_LaborAlert: Update on the Salvadoran Fire Department Law The Committee on Legislation and Constitutional Matters has issued a favorable opinion to reform... #### #CostaRica 🇨🇷 #BDS\_Alert: Deadline for Independent Workers to Benefit from Debt Statute of Limitations Expires on May 8 The two-year period granted by Act No. 10.363 for independent workers who are not registered with... ![BDS-color-ingles-130](https://publicaciones.bdsasesores.com/hubfs/BDS-color-ingles-130.png) #### Subscribe here! Costa Rica / +506 2545-3600 El Salvador / +503 2296-9500 Panamá / +507 830-2190 Honduras / +504 3143-5797 Guatemala / +506 2545-3600 Nicaragua / +505 8602-3512 República Dominicana / +809 540-0794 Costa Rica / +506 2545-3600 El Salvador / +503 2296-9500 Panama / +507 830-2190 Honduras / +504 2550-3076 Guatemala / +506 2545-3600 Nicaragua / +505 8602-3512 Dominican Republic / +809 540-0794 [digital@bdsasesores.com](mailto:digital@bdsasesores.com) [www.bdsasesores.com](https://www.bdsasesores.com) [![](https://publicaciones.bdsasesores.com/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/Facebook-blog.png)](https://www.facebook.com/Bdsasesores/) [![](https://publicaciones.bdsasesores.com/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/LinkedIn-blog.png)](https://www.linkedin.com/company/bds-asesores) [![](https://publicaciones.bdsasesores.com/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/X-blog.png)](https://twitter.com/BDSAsesores) [![](https://publicaciones.bdsasesores.com/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/Instagram-blog.png)](https://www.instagram.com/bds.asesores/) [![](https://publicaciones.bdsasesores.com/hubfs/raw_assets/public/Theme-Delight%20BDS%20Asesores/images/YouTube-blog.png)](https://www.youtube.com/CanalBDS) ©️ All rights reserved ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "BDS Asesores", "url" : "https://publicaciones.bdsasesores.com/en-us/blog/author/bds-asesores" }, "dateModified" : "2023-05-31T18:04:12.739Z", "datePublished" : "2023-05-31T18:04:12.000Z", "headline" : "#Panama 🇵🇦 #BDS_LaborAlert: Termination of Employment Relationship Due to Worker's Retirement", "image" : [ "https://publicaciones.bdsasesores.com/hubfs/Plantilla%20Fotos-May-29-2023-07-34-23-5335-PM.jpg" ], "mainEntityOfPage" : { "@id" : "https://publicaciones.bdsasesores.com/en-us/blog/panama-bds_laboralert-termination-of-employment-relationship-due-to-workers-retirement", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://publicaciones.bdsasesores.com/hubfs/BDS_Asesores_September2019/Images/logo-2.png" }, "name" : "BDS Asesores" } } ```