Law No. 126 of February 18, 2020, which establishes and regulates teleworking (also referred to as telecommuting) in the Republic of Panama, was published on February 19, 2020, in the Official Gazette of the Republic of Panama; with effect the day after its publication.

Law No. 126 establishes that the teleworking will be a voluntary, reversible, part-time or full-time activity, and indicates the obligations of both teleworkers and their employer that are required to implement this arrangement. It also includes regulation for common practices such as employees being “on-call” for work to be provided out of their regular work schedule.

The obligations that both the employer and the employee will have regarding teleworking, include policies for the protection of confidential information, for the protection of the health and safety of the employee, as well as providing an adequate workspace, and the necessary tools for the employee.

Additionally, this law modifies article 151 of the Labor Code with regards the way of payment of the salary to employees.

We have included a copy of Law (in spanish) in the following link.

For more information regarding this law, you can contact Gabriela Vásquez at gvasquez@gala.com.pa.