Updated
Updated · Littler Mendelson PC · Jun 26
Panama Requires Labor Rules for 10+ Workers as New York Lets Employers Tailor Handbooks
Updated
Updated · Littler Mendelson PC · Jun 26

Panama Requires Labor Rules for 10+ Workers as New York Lets Employers Tailor Handbooks

1 articles · Updated · Littler Mendelson PC · Jun 26

Summary

  • Panama requires any company with 10 or more employees to adopt Internal Work Regulations and secure Labor Ministry approval before they gain full legal effect.
  • Once approved, those rules become part of each employment contract, setting terms on hours, pay, rest periods, rights, obligations and discipline.
  • Panamanian law also limits discipline to three main measures—verbal warning, written warning or unpaid suspension of up to 3 days.
  • New York and the broader U.S. generally impose no comparable government-approved rulebook, relying instead on employee handbooks and internal policies drafted by employers.
  • That flexibility lets New York employers tailor policies, but they still must track federal, state and local mandates, including sector-specific rules such as retail workplace-violence policies.

Insights

When remote work crosses borders, which country's laws should ultimately protect an employee when legal frameworks inevitably clash?
As companies use EORs to bypass legal hurdles, what hidden risks does this booming 'employer-for-hire' industry create for them?
With new laws targeting AI bias, how can employers prove hiring algorithms are fair when their inner workings are a black box?