#Panama 🇵🇦 #BDS_LaborAlert: Proper Management of Work Schedules during National Holidays

With the start of November in Panama, the celebration of national holidays begins, which brings with it a significant number of public holidays due to national festivities.

In this regard, there are several holidays during the month, as established in Article 46 of our Labor Code, which are mandatory paid rest days. This includes November 3, 5, 10, and 28, which are considered "national holidays," where the following events are commemorated:

 

• November 3: Panama's Separation from Colombia
• November 5: Consolidation of Panama's Separation from Colombia in Colón
• November 10: Cry for Independence in Villa de Los Santos
• November 28: Panama's Independence from Spain.

However, the fact that these dates are public holidays does not prevent employees from working on these days. In such cases, the employee is entitled to be paid for that workday with a 150% surcharge on the regular wage. Additionally, the employee will be entitled to an additional compensatory day off. If the employee also has to work on this compensatory day off, it must be paid with a 50% surcharge on the regular wage.

An important aspect to highlight this year is the particular situation in which November 3 falls on a Sunday. On this matter, Article 47 of the Labor Code establishes that when a national holiday or day of mourning, previously fixed by law, falls on a Sunday, the following Monday (in this case, November 4) becomes a mandatory weekly rest day.

This means that if an employee has to work on Sunday, November 3, they are entitled to be paid with a 150% surcharge on the regular wage for working on a national holiday, and they must also be granted another compensatory day off, different from Monday, November 4.

On the other hand, if an employee works on November 4 (considered a mandatory weekly rest day), they must be paid with a 50% surcharge on the regular wage, without prejudice to the employee’s right to another compensatory day off.

It should be noted that the payment for any overtime worked on a national holiday or day of mourning, as well as on mandatory weekly rest days, must include the surcharges applicable for work performed on rest days (Articles 48 and 49 of the Labor Code) and, additionally, the surcharge established under Article 33 of the Labor Code or applicable supplementary law.

Regarding companies that do grant rest on national holidays, they may not deduct wages from employees for the non-working days, as national holidays must be paid as regular workdays by law.       

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