#Panama 🇵🇦 #LaborAlertaBDS: Work during National Holidays
November is known as the so-called “Month of the Homeland” in Panama, as during a number of...
As November begins, the commemoration of Panama’s national holidays is just around the corner, along with a considerable number of holidays to be enjoyed during the national festivities.
According to the provisions of Article 46 of the Labor Code, November 3, 5, 10 and 28 are mandatory days of rest and are considered “holidays”, that is, they do not prevent employees from working on these days provided that the company’s operations required them to do so.
It should be noted that when employees are required to work on holidays, Article 49 of the Labor Code provides as follows:
“Work during a national holiday or national day of mourning shall be paid at a 150% surcharge on the salary of the ordinary workshift, without prejudice to the employee’s right to enjoy any other day as compensatory day of rest during the week”.
In addition, if the employee is required to work on the compensatory day of rest resulting from having to work on a holiday or a national day of mourning, said employee will be paid a 50% surcharge on the ordinary workshift.
It must be noted that any overtime worked during holidays or national days of mourning, as well as on mandatory days of rest, must be paid with the relevant surcharges applicable to work on days of rest (Articles 48 and 49 of the Labor Code) and additionally, the relevant surcharge under Article 33 of the Labor Code or any suppletive law.
As for any companies allowing their employees to rest during national holidays, they may not deduct these days as non-worked from the employees’ pay, given that national holidays must be mandatorily paid as ordinary workshifts.
It must be noted that any overtime worked during holidays or national days of mourning, as well as on mandatory days of rest, must be paid with the relevant surcharges applicable to work on days of rest (Articles 48 and 49 of the Labor Code) and additionally, the relevant surcharge under Article 33 of the Labor Code or any suppletive law.
As for any companies allowing their employees to rest during national holidays, they may not deduct these days as non-worked from the employees’ pay, given that national holidays must be mandatorily paid as ordinary workshifts.
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