Panama

Panamanian labor law establishes a framework for working hours, ensuring fair treatment for employees. Here's a breakdown of the key regulations:

The maximum workday is eight hours, and the maximum workweek is 48 hours. There are exceptions for specific industries or circumstances outlined in collective bargaining agreements.

It's important to note that while the legal maximum is 48 hours per week, many Panamanian businesses operate on a 40-hour workweek spread across five days (Monday to Friday). An employment contract may specify working hours that differ slightly from the legal limits, as long as they are within the legal framework.

In Panama, labor law ensures fair compensation for employees who work beyond standard hours.

Overtime pay is triggered when an employee works beyond certain limits. On a daily basis, this limit is 3 hours. On a weekly basis, the limit is 9 hours. However, work deemed hazardous by law cannot have overtime hours.

The compensation rate for overtime work depends on the time of day. Between 6:00 AM and 6:00 PM, the rate is 125% of regular pay, or 1.25 times the base rate. Between 6:00 PM and 6:00 AM, on rest days, and holidays, the rate is 150% of regular pay, or 1.5 times the base rate. If the overtime is an extension of a night shift or mixed shift starting between 6 PM and 6 AM, the rate is 175% of regular pay, or 1.75 times the base rate.

These rates are established in the Panamanian Labor Code (Código de Trabajo de 1971), specifically Articles 33-38.

Employers cannot require employees to work overtime except in specific situations like emergencies or certain industries like agriculture, albeit with limitations. It's advisable to consult the Panamanian Ministry of Labor (Ministerio de Trabajo y Desarrollo Laboral) for the latest official guidance on overtime work regulations.

In Panama, labor law guarantees rest periods and breaks for workers, ensuring their well-being and productivity.

Every worker is entitled to one mandatory rest day per week, usually Sunday.

Each workday must be interrupted by a rest break of at least 30 minutes and not exceeding two hours. The specific timing of the rest break can be negotiated between the employer and employee, as long as it adheres to the minimum 30-minute requirement and doesn't disrupt production excessively.

For female employees with breastfeeding children, the law allows for a 15-minute break every 3 hours, or alternatively, two 30-minute breaks spread throughout the workday for feeding purposes. This break time is considered part of their working hours.

In Panama, the Labor Code of 1971, amended as of 1995, provides specific regulations for night shift and weekend work. These regulations are designed to protect the wellbeing of workers and ensure they receive fair compensation for extended hours.

Night shift work is defined as work schedules that occur between 6:00 p.m. and 6:00 a.m. Workers on the night shift are limited to a maximum of seven hours per day and 42 hours per week. This is different from the standard workday, which allows for eight hours per day and 48 hours per week for day shift workers.

As for weekend work, if work is performed on national public holidays, it requires double the regular pay rate. Weekend work that falls outside of national holidays can qualify for overtime pay. Overtime between 6:00 a.m. and 6:00 p.m. incurs a 25% premium on regular wages. Overtime between 6:00 p.m. and 6:00 a.m., or mixed shifts starting during the day and exceeding standard working hours, receive a 50% premium. The highest premium applies to overtime extending a night shift or a mixed shift starting between 6:00 p.m. and 6:00 a.m., attracting a 75% increase on regular wages.

These regulations provide a general framework. For comprehensive and up-to-date information on night shift and weekend work regulations, particularly regarding specific industries or employer agreements, it's advisable to consult the Panamanian Ministry of Labor (Ministerio de Trabajo y Desarrollo Laboral) or seek legal counsel.