What are the standard working hours in Panama?

In Panama, the standard working hours are set by law and vary according to the type of shift:

• Day Shift (6 a.m. to 6 p.m.):

- Maximum of 8 hours per day

- Up to 48 hours per week

• Night Shift (6 p.m. to 6 a.m.):

- Maximum of 7 hours per day

- Up to 42 hours per week

• Mixed Shift (combination of day and night hours, not exceeding three night hours):

- Maximum of 7.5 hours per day

- Up to 45 hours per week

For the type of economic activity carried out by Pebl in Panama, the working hours are aligned with the legal limits.

Additionally, work performed for 7 hours at night and 7.5 hours of the mixed shift is remunerated as 8 hours of daytime work for purposes of calculating the legal or conventional minimum wage.

Is overtime governed by law in Panama? If so, what are the specifics outlined by law?

In Panama, overtime is governed by law. The specifics outlined by law are as follows:

• A 25% overcharge applies when the overtime work is performed during the daytime.
• A 50% overcharge applies when the work is performed during the night period or when the mixed shift starts during the daytime.
• A 75% overcharge applies when the overtime work is performed as an extension of the night shift or the mixed shift started during the night period.

Additionally, workers are restricted to working a maximum of 3 overtime hours per day and no more than 9 overtime hours per week. Any surplus beyond these hours will be compensated with a 75% additional charge, in addition to any penalties that may be applied to the employer.

How many days before the actual start date should the employment agreement be signed for payroll purposes in Panama?

In Panama, the employment agreement must be wet-signed either before the start date or on the start date for payroll purposes. Additionally, the wet-signed document must be sealed by the Labor Ministry.