News in Labor Migration

• Author: Jesibel Morales E.
• Published date: 25 January 2024
• Law Firm: Blogs Alemán, Cordero, Galindo & Lee

News in Labor Migration

Executive Decree No. 6 of April 13, 2023, amended and

introduced new concepts, terms, and conditions regar-

ding the types of work permits for foreigners. From its

content, we can highlight for its high relevance the seven

(7) points explained below:

I. Workers considered local labor.

1. Migrant workers with ten (10) or more years of

residence in the country.

2. Migrant worker with a spouse of Panamanian

nationality:

◊ With the current marriage.

◊ With Parental authority in case of divorce.

◊ With Parental jurisdiction in case of widowhood.

3. Migrant worker with exceptional permanent

residence.

4. Migrant worker for family reunification, as father or

mother of a Panamanian person with a dependency

condition.

5. Migrant Worker in attention to the Treaty of

Friendship, Commerce, and Navigation between the

Republic of Panama and the Italian Republic.

6. Migrant workers dependent on diplomatic, consular,

administrative, and international organizations

accredited in Panama.

7. Specific countries that maintain friendly, professional,

economic, and investment relations with the Rep. of

Panama (Executive Decree No. 140 of August 2, 2012).

The highlight of this classification is that it is recognized

in writing that the work permits listed from 3 to 7 will

not be considered within the percentages of salary and

local labor.

II. Percentages authorized by the Labor Code.

1. Migrant workers hired by an employer as Ordinary

Personnel Within 10% of the total number of workers.

2. Migrant workers hired by an employer as a Specialist

or Technician within 15% of the total number of

workers.

3. Migrant workers hired by an employer as Trusted

Personnel within 15% of the total number of workers.

4. Migrant Worker hired by Micro or Small Employer (MIPE)

(Marrakesh Agreement).

5. Migrant workers hired as Trusted Personnel whose

transactions are perfected, consummated, or have their

eects abroad exclusively.

The highlight of this category is that it is established that in

the same company, there may be sta within ten percent

(10%) and technical or trusted personnel within fifteen (15%)

of the total of workers, excluding both percentages among

themselves. It also clarifies the requirements that personnel

must meet to be considered within 15% of the technical

sta, such as transferring knowledge through training to

the national team and sending the Ministry of Labor the

technical reports and evidence demonstrating compliance

with the above. The Trusted Personnel whose transactions

are perfected, consummated, or have their eects abroad are

excepted from the calculation of percentages.

III. Work permits covered by special laws.

1. Migrant workers hired as an executive by a company in

the Colon Free Zone.

2. Migrant workers hired by an authorized employer within

the City of Knowledge Foundation (CDS) regime.

Author: Jesibel Morales E. associate in Alcogal