This summary of age discrimination law in Panama has been prepared by Arosemena Noriega & Contreras, the Ius Laboris member for Panama: www.arnoco.com
Overview
Protection from discrimination is enshrined within the constitution of Panama. Article 67 of the Political Constitution of Panama, states:
“Equal wages and pay shall always apply to equal work performed under identical conditions, irrespective of the person who performs it, without distinction as to sex, nationality, age, race, social class, or political or religious ideas”.
Moreover, Law 7 of 2018, by which measures to prevent , prohibit and sanction discriminatories acts and other rules is adopted, prohibits and establishes liability for any act of violence against the honour, dignity, physical and psychological integrity of employees; protects the right to work in conditions of equity and establishes public policies to prevent these acts, in accordance with the conventions on Human Rights ratified by the Republic of Panama.
Who's covered?
Constitutional and legal provisions only cover employees and do not extend to self-employed or agency workers.
What enforcement/remedies exist?
There are no criminal sanctions. An employee that suffers age discrimination can terminate his/her employment relationship with jutifiable cause and request a labour indemnity pursuant to the Labor Code.
By the same token, where the employer or a client of the employer, is responsible for the discriminatory acts, the employee can claim tort damages in accordance with the Civil Code.
If as a consequence of the discriminatory act the employee was unjustifiable terminated, he/she can request reinstatement to the labour courts.
It is worth mentioning that the Ministry of Labour can sanction an employee that violates these rules ranging from US$.500.00 to US$.1,000.00., for each violation.
What claims are most common and what are trickiest issues for employers?
Claims involving sex discrimination are more common than claims for age discrimination. That said, all claims for discrimination are rare.
In Panama, employees cannot be dismissed for a reason which does not fall within any of the justified causes contained in the Labour Code. As stated above, age is not a protected ground and so a dismissal based on age is not a justified cause.
However, the granting of a retirement pension by the Social Security Fund does represent a justified cause for dismissal, provided that the employee receives the respective pension in the month following the dismissal. In this respects, an employer can force an employee to retire upon reaching pensionable age.
Are there any specific exceptions in your laws?
There are no exceptions.
Retirement Ages
In Panama, the retirement age for women is 57 years of age and 62 years of age for men.