Leave policies are important for both employers and employees. In this page we are going to explore the leave laws of Panama. This article explains Panama’s leave laws, including Annual Leave Sick Leave Maternity Leave Paternity Leave Bereavement Leave Vacation Leave Whether you are an employer making leave policies or an employee learning about your rights.
LeaveType | Quota | Accrual Rules | Carry Over Rules | Payout on Termination | End of Year Payout |
---|---|---|---|---|---|
Annual Leave | 14 days of annual leave per year. | Accrues annually after 12 months of service. | Leave can be carried over for one year. | Unused leave is paid out at termination. | No automatic end-of-year payout. |
Sick Leave | 3 days of sick leave per month. | Accrues at 3 days per month. | Sick leave can accumulate but has a cap. | No payout for unused sick leave. | No end-of-year payout. |
Maternity Leave | 14 weeks of paid maternity leave. | Accrual is not applicable. | Maternity leave does not carry over. | No payout on termination. | No end-of-year payout. |
Paternity Leave | 3 days of paid paternity leave. | No accrual for paternity leave. | Paternity leave cannot be carried over. | Paternity leave is not paid out on termination. | No end-of-year payout. |
Bereavement Leave | 3 days of paid leave for bereavement. | No accrual for bereavement leave. | Bereavement leave cannot be carried over. | Bereavement leave is not paid out. | No end-of-year payout. |
Vacation Leave | 14 days of paid vacation leave. | Accrues after 1 year of service. | Vacation leave can be carried over. | Payout for unused vacation upon termination. | No automatic end-of-year payout. |
Employees are entitled to 14 days of annual leave for each full year of employment. This leave must be taken during the year, but can be scheduled by mutual agreement between the employer and employee.
Employees must notify their employer at least 15 days in advance when requesting to take annual leave. This allows employers to manage workloads and staffing requirements.
Employees must obtain approval from their employer before taking annual leave. Approval is subject to the operational needs of the employer.
The law does not mandate additional annual leave beyond the standard 14 days, though employers may offer more as a benefit in individual contracts or collective agreements.
Annual leave accrues after the employee has completed 12 months of continuous service with the same employer. The full quota of 14 days is provided after each annual period.
Unused annual leave may be carried over to the next year. However, it must be taken within the following 12-month period. If not, the employer is not obligated to provide the leave or payout.
If an employee leaves the company, they are entitled to a payout for any unused annual leave. The payout is calculated based on their daily wage.
Unused annual leave is not automatically paid out at the end of the year. It can either be carried over or, if the employee leaves, paid out upon termination.
Employers have the discretion to set rules for the timing of annual leave, including periods when leave cannot be taken due to operational requirements. Employees must adhere to these policies.
Employees are entitled to 3 days of paid sick leave per month. This can accumulate if not used, allowing for greater leave over time.
Employees must notify their employer as soon as possible when they are unable to work due to illness. Notification should be done at the earliest opportunity.
Sick leave does not require prior approval, but employers may require a medical certificate for absences of more than 3 consecutive days.
If an employee exhausts their sick leave quota, they may be granted additional leave upon presenting a medical certificate from a qualified doctor.
Sick leave accrues at a rate of 3 days per month. It can accumulate over time if not used, with the total leave not exceeding 12 days annually.
Unused sick leave can accumulate, but employees are entitled to a maximum of 12 days per year. Leave exceeding this limit is forfeited.
Sick leave is not paid out upon termination of employment, as it is considered a benefit for periods of illness only.
Unused sick leave is not paid out at the end of the year and is not accumulated beyond the yearly quota of 12 days.
For sick leave extending beyond 3 consecutive days, employees must provide a medical certificate. Otherwise, leave may not be considered paid.
Female employees are entitled to 14 weeks of paid maternity leave, typically divided into 6 weeks before childbirth and 8 weeks after. Leave may be extended in special circumstances.
Employees must notify their employer of their pregnancy at least one month before taking maternity leave. This allows employers to plan for temporary replacements.
Maternity leave must be approved by the employer in advance, though it is typically granted as a right under labor law.
The law does not require any additional maternity leave beyond the statutory 14 weeks. Employers may offer additional leave as part of their benefits package.
Maternity leave does not accrue as it is a separate entitlement based on the employee's condition rather than time worked.
Maternity leave is a one-time benefit per pregnancy and cannot be carried over or accumulated.
Unused maternity leave is not paid out upon termination. The benefit is solely for the period of maternity leave taken.
Maternity leave is not subject to an end-of-year payout.
Maternity leave is protected by law, and employees cannot be terminated during this period unless due to grave misconduct. Employers must provide the full leave entitlement.
Male employees are entitled to 3 days of paid paternity leave upon the birth of a child. This leave is typically granted immediately following the birth.
Employees must notify their employer as soon as possible after the birth of the child to take paternity leave.
Paternity leave must be approved by the employer, though approval is generally granted as a right under labor law.
The law does not require additional paternity leave beyond the 3-day statutory entitlement.
Paternity leave is not accrued, as it is a specific entitlement based on the event of childbirth.
Paternity leave must be used during the week of childbirth and cannot be carried over to future periods.
Unused paternity leave is not paid out upon termination of employment.
Paternity leave is not subject to an end-of-year payout.
Paternity leave is specifically intended for fathers and may not be used by employees for other reasons.
Employees are entitled to 3 days of paid leave upon the death of a close family member, such as a spouse, child, or parent.
Employees must inform their employer as soon as possible when taking bereavement leave.
Bereavement leave requires approval from the employer, though it is generally granted for close family member deaths.
The law does not require additional leave beyond the 3-day statutory entitlement for bereavement.
Bereavement leave is not accrued and is granted on an as-needed basis following the death of a family member.
Bereavement leave is a one-time entitlement per death and cannot be carried over.
Bereavement leave is not paid out upon termination of employment.
Bereavement leave is not subject to an end-of-year payout.
Bereavement leave is only applicable for the death of a close family member. It is not intended for other types of leave.
Employees are entitled to 14 days of paid vacation leave per year after completing one year of employment.
Employees must notify their employer at least 15 days before they wish to take vacation leave.
Employees need employer approval for vacation leave. Employers may deny vacation requests during busy periods.
Additional vacation leave is not required by law but may be granted by employers as part of a benefits package.
Vacation leave accrues annually after an employee has worked for 12 months with the same employer.
Unused vacation leave can be carried over to the next year, but should be used within 12 months. After that, it may expire.
Unused vacation leave is paid out upon termination based on the employee's daily wage.
Unused vacation leave is not automatically paid out at the end of the year, but can be carried over or paid out upon termination.
Employees can request vacation leave at a time of their choosing, but it must be approved by the employer based on operational needs.
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