Carnival is approaching in Panama and, with it, immediate questions arise regarding mandatory rest days, their compensation, and the legal implications of employee absences. It is essential to remember that Article 46 of the Labor Code establishes only Carnival Tuesday as a national holiday and mandatory day of rest. In contrast, Carnival Monday and Ash Wednesday are regular working days for the private sector, unless specific agreements are in place between employers and employees to grant them as days off.
With respect to compensation for employees who must work on Tuesday, February 17, thelaw is strict: the employee is entitled to payment at a 150% premium over the ordinary wage for that day. In addition, the employer must grant a compensatory day of rest during the same week, which will not be paid separately, as the statutory premium already covers compensation for that rest period.
A critical issue that often gives rise to controversy is unjustified absences. If an employee fails to report to work without authorization on Carnival Monday or Ash Wednesday, they may face dismissal with just cause pursuant to Article 213, subsection 11, of the Labor Code. That provision sanctions the absence of two Mondays within the same month and establishes that “Monday” includes both the first day of the week and the day following a national holiday or day of mourning. In this context, Ash Wednesday legally acquires the status of a Monday because it follows Carnival Tuesday. Nevertheless, prior legal consultation is recommended before adopting drastic measures, as other relevant factors must be taken into consideration.
In conclusion, Carnival Tuesday is the only legally mandated day of rest, while Monday and Wednesday remain regular working days that may be granted as days off. In such cases, we recommend properly documenting these decisions to avoid confusion or misinterpretation