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Panama

Remote and Flexible Work Options

Learn about remote work policies and flexible work arrangements in Panama

Remote work

Panama's approach to remote work is characterized by flexibility and voluntariness. There's no overarching law governing telework, but key principles are established through the Ministry of Labor and Workforce Development (MITRADEL).

###Voluntary Participation Both employer and employee must agree to a remote work arrangement. This agreement can be established within the initial contract or added later through an amendment.

###Work Schedule The standard workweek of 48 hours and 8-hour days remains applicable. However, employers and employees can agree on flexible schedules, as long as the right to disconnect is respected.

##Technological Infrastructure

For successful remote work implementation, a robust technological infrastructure is essential.

###Reliable Internet Connectivity A stable and high-speed internet connection is crucial for effective communication and task completion. Employers may need to assess employee internet access or provide support for upgrades.

###Secure Communication Platforms Secure video conferencing tools, instant messaging applications, and cloud-based storage solutions are vital for collaboration.

###Equipment and Supplies Employers may need to determine if they will provide employees with necessary equipment like laptops, headsets, or ergonomic furniture, or if employees are responsible for their own setup.

##Employer Responsibilities

Employers have specific responsibilities when it comes to remote work arrangements.

###Health and Safety While working from home, employees are still entitled to a safe work environment. Employers should provide guidance on ergonomics, and offer training on preventing work-related injuries.

###Performance Management Setting clear performance expectations, providing regular feedback, and utilizing appropriate monitoring tools are crucial for maintaining productivity in a remote setting.

###Communication and Collaboration Employers should facilitate effective communication channels and encourage collaboration among remote and in-office teams.

Flexible work arrangements

Part-time work is a flexible work arrangement where employees work a reduced schedule compared to the standard 48-hour workweek. This arrangement provides work-life balance for those with caregiving responsibilities or pursuing further education. Part-time employees are entitled to all benefits and social security contributions on a pro-rated basis.

Flexitime is another flexible work arrangement that allows employees to adjust their daily work schedule within set parameters, as long as total work hours are completed within the designated workweek. This offers greater control over work schedules, promoting work-life balance and potentially reducing commuting times. Employers and employees must agree on core working hours (when everyone is expected to be available) and flexible working hours within the daily or weekly schedule.

Job sharing is a flexible work arrangement where two or more employees share the responsibilities of one full-time position, dividing work hours and salary. This enables experienced professionals to work part-time while maintaining their skillset, and offers greater flexibility for those seeking reduced workloads. A formal agreement outlining responsibilities, work schedules, and compensation for each job sharer is required.

In terms of equipment and expense reimbursements, Panamanian law doesn't mandate employers to provide equipment or reimburse expenses for flexible work arrangements. However, agreements can be established between employers and employees. The agreement can specify if the employer provides necessary equipment or if the employee is responsible for their own setup. Similarly, the agreement can address internet access expectations. Employers may choose to contribute to employee internet costs partially or fully.

Data protection and privacy

Panamanian Law 81 of 2019, known as the "Law Protecting Personal Data," establishes a framework for data protection. Employers in Panama have several obligations under this law:

Employer Obligations

  • Data Minimization: Employers can only collect and process personal data necessary for employment purposes.
  • Transparency and Consent: Employees must be informed about the data collected, its purpose, and their rights regarding that data. Informed consent must be obtained before processing personal data.
  • Security Measures: Employers must implement appropriate technical and organizational measures to safeguard personal data from unauthorized access, disclosure, alteration, or destruction.
  • Data Breach Notification: In case of a data breach, employers must notify the National Authority for Transparency and Access to Information (ANTAI) within 72 hours.

Employee Rights

Panamanian Law 81 of 2019 empowers employees with several data privacy rights:

  • Right to Access: Employees have the right to access their personal data held by the employer and request a copy.
  • Right to Rectification: Employees can request rectification of inaccurate or incomplete personal data.
  • Right to Erasure: Under certain circumstances, employees can request the erasure of their personal data.
  • Right to Restriction of Processing: Employees have the right to restrict the processing of their personal data.

Best Practices for Securing Data

Here are some best practices for employers and employees to ensure data protection and privacy:

  • Data Classification: Implement a data classification system to identify and categorize sensitive data requiring additional security measures.
  • Access Controls: Grant access to employee data only on a need-to-know basis and implement strong password policies.
  • Encryption: Encrypt sensitive data at rest and in transit.
  • Employee Training: Provide regular training to employees on data security best practices, including phishing awareness and password hygiene.
  • Remote Access Security: Use secure remote access solutions with multi-factor authentication and implement firewalls to protect company networks.
  • Data Retention Policy: Establish a data retention policy outlining how long different types of data can be stored before secure disposal.
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