Law No. 238 of September 15, 2021 (hereinafter "Law 238") extends the maternity protection to the father and grants vacations in case of the mother's decease.

The Constitution of the Republic of Panama and the Labor Code establish a maternity protection, by means of which the working mother may not be fired during a one-year period, except for special cases provided by law. 

The scope of said maternity protection is extended to the father in the following cases:

• For the mother's decease during childbirth.
• In the event of the mother's decease within 12 months after childbirth.
• When the woman, while pregnant or within 12 months after childbirth, does not have a formal job. 

In cases when the mother passes away, the leave is extended until the end of the 1 year term counted from the childbirth. Additionally, the father will be entitled to 15 days of vacation, which will be granted after fulfilling the mourning period established by the company's internal regulations.

In cases where the mother does not have a formal job, the father may not be fired during the months of the pregnancy and, after childbirth, for a period of 1 year.

Law 238 will enter into force the day after the state of emergency is lifted as a consequence of the effects generated by the Covid-19 pandemic.

We take this opportunity to remind you that, through Law No. 27 of May 23, 2017, paternity leave is created for workers of private companies and public officers. The paternity leave shall apply as follows:

• It shall be for a term of 3 working days, which must be counted as effective time of service. 
• The beginning of the leave shall be counted from the date of birth of the son or daughter and shall be granted only once a year. It will not be at the employee's discretion to choose later the use of paternity leave. 
• The employee must declare in his employment contract or personal and dependent data form the name of his wife or partner.

If you would like more information on this subject or other labor law issues, please do not hesitate to contact us.