Suspension Of Labor Contracts – Decree 81 Of 2020

Executive Decree No. 81 of March 20, 2020, establishes that the contracts of the workers of companies that have been closed as part of the preventive measures of the authorities will be considered suspended. The procedure to formalize the suspension of contracts will be carried out digitally, sending the requested documents, in PDF format to the email address:

solicitudes@mitradel.gob.pa

The regulation establishes that workers will not be obliged to provide services, nor employers to pay wages.

The situation does not represent the end of the employment relationship, the day after the suspension of the State of Emergency, workers may return to their posts to carry out their days on a regular basis and preventing it will be considered an unjustified dismissal.

The people whose contract has been suspended will be included in the list of beneficiaries of the programs established by the Executive Body to mitigate the lack of economic income while the sanitary protection measures last. During the suspension time, the beneficiary workers will be able to use the medical services authorized in the Social Security Fund (CSS).

Requirements:

Request (memorial)
Copy of the business license
Copy of the last payroll of the Social Security Fund
Proof of financial impact
List of workers

Finally, the decree indicates that if within 3 business days the Ministry of Labor and Labor Development does not pronounce itself, the request will be understood as approved.

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