WORK PERMITS

The Panamanian Labor Law allows foreigners to work in Panama, as long as the Ministry of Labor and Work Development authorizes the respective Work Permit, which is valid for the term of one (1) year.

There are different types of Work Permits; the choice of one or another shall depend on each particular case.

Among the classification of work permits that may be requested we list following:

1. WORK PERMIT APPLICATION FOR A FOREIGNER MARRIED TO A PANAMANIAN

If this is the case, the Ministry of Labor and Work Development grants the Work Permit as long as the aplicant is married to a Panamanian citizen.

2. WORK PERMIT APPLICATION FOR A FOREIGNER WITH TEN (10) YEARS OF RESIDENCE IN THE COUNTRY

In these cases, in order to authorize a work permit, the Ministry of Labor and Work Development estimates the lenght of time the requestor has been residing in Panama (must be ten (10) years) regardless of the time the applicant has requested his/her work permit.

The time of residence is estimated from the date the Migration Department approves the application for an Immigrant Visa.

The laborer soliciting his/her work permit based on the fact that he/she has lived ten (10) years in Panama, will obtain from the Ministry of Labor and Work Development an indefinite work permit, concluding therewith the formalities before said Ministry.

3. WORK PERMIT APPLICATION FOR APPLICATION FOR A TRUSTWORTHY EMPLOYEE

A trustworthy employee is one who works in a company or section dedicated to address from Panama, transactions to be perfected, consumed, or have desired effects abroad and whose salary is nor organated from a panamanian source. Such employees may be contracted for an indefinite period of time.

4. WORK PERMIT APPLICATION FOR TECHNICIANS OR EXPERTS

In these cases, the quality of work performed by the technicians or experts must be accredited to the Ministry of Labor and Work Development. In addition, it is necessary that the company consider a percentage to hire Panamanian as established by law.

5. WORK PERMIT APPLICATION FOR WORKERS INSIDE THE 10% OF THE ORDINARY PERSONAL

For this cases it is necessary that the Ministry of Labor and Labor Development gives the authorization to the foreign worker to work in Panama in an enterprise as "ordinary personal", this means that he/she will be in a position withouth being a representative of the chief and will be a subordinate only.

6. WORK PERMIT APPLICATION FOR WORKERS IN AN ENTERPRISE WITH LESS THAN TEN WORKERS

There is an exception in this type of permit regarding the percentages established by law. Foreign workers can apply to small companies with less than ten workers and they can be part of the "ordinary personal" or they can be technicians and experts.