Employment Contracts

Formalize your employment relationship without risk

A poorly structured contract can carry serious legal consequences. In Panama, many employment relationships are handled informally, which can lead to conflicts, lawsuits and sanctions before MITRADEL.

• Custom drafting — Employment contracts adapted to Panamanian regulations and your company’s specific needs.
• Annexes & internal policies — Complementary documents to avoid labor conflicts and set clear rules from the start.
• Labor Code compliance — We ensure your company meets all labor obligations: CSS, minimum wage, 13th-month bonus, vacations.

Contract types — which one do you need?

• Fixed-term (specific period) — Signed for a set period. Can only be renewed once before becoming indefinite. Requires precise handling.
• Indefinite (stable relationship) — No end date. The most common for stable employment. Maximum protection for both parties.
• By project — For specific work that ends when the project is completed. Ideal for construction and temporary projects.
• Professional services (independent) — For service provision without an employment relationship. We also advise independent professionals.

A poorly made document can carry serious legal consequences. Get advice today.

Employer obligations — Panama’s Labor Code

• Register the worker with the CSS from the first day of work.
• Payment of employer-employee social security contributions.
• Compliance with the minimum wage by activity and region.
• Payment of the 13th-month bonus, vacations and seniority premium.

Contract termination — legal separation types

• Justified dismissal — The worker breaches labor rules or commits serious misconduct. Must be formally notified and filed with MITRADEL if necessary.
• Unjustified dismissal — Without cause justified in the Labor Code. The worker is entitled to compensation based on time worked.
• Other forms — Voluntary resignation, mutual agreement, or expiration of temporary contracts. Each case requires specific documentation.