New Labor Protections for Employees with Chronic Illnesses in Panama

Executive Decree No. 45 of 2022 establishes a robust legal framework to protect workers in both public and private sectors who suffer from chronic, degenerative, or involutional diseases leading to work disability. This regulation reinforces employee rights and defines clear employer responsibilities, balancing health concerns with operational needs.

Core Employee Rights

1. Job Security:

• Employees diagnosed with chronic illnesses cannot be dismissed if they can perform roles compatible with their medical condition, skills, and experience.

• Any dismissal linked to the illness is deemed unjustified and requires prior authorization from a labor court.

2. Non-Discrimination:

• Prohibits all forms of discrimination, pressure, or harassment against workers with health-related disabilities.

3. Mandatory Medical Certification:

• Employees must submit a medical certificate issued by the Interdisciplinary Commission for Physical or Mental Certification under the Public Health Directorate.

• This process can be initiated even after dismissal to validate the medical condition.

Employer Procedures

• Certification Request:

• Employers may request a medical assessment to determine if the disability is partial (ability to adapt to other roles) or absolute (total inability to work).

• During the evaluation period (up to 2 months), the employee retains their position.

• Dismissal Management:

• In cases of absolute disability, employers may invoke Article 213-B of the Labor Code, allowing termination for non-attributable causes.

• This requires presenting medical evidence to a judge and proving that no reasonable accommodations are feasible (e.g., remote work, task redistribution).

Compliance Recommendations

1. Thorough Documentation:

• Maintain updated records of medical histories, internal communications, and meeting minutes related to workplace accommodations.

2. HR Training:

• Train HR teams in managing medical cases, including protocols for certification requests and designing reasonable adjustments.

3. Litigation Prevention:

• Avoid rushed dismissals. Consult legal experts to assess risks and ensure due process.