Law 513 of 2026 on Internships: New Regulation

How to Register Your Company in the Program

By: Estefanía Guardia – Associate

What does this Executive Decree do?

Following the enactment of Law 513 of 2026, the Executive Branch issued Executive Decree No. 1 of August 31, 2026, which regulates that law to facilitate compliance with the Law and the achievement of its objectives.

Below, we summarize the most relevant points of this regulation for your information:

How does a company or entity register?

MITRADEL (Ministry of Labor and Workforce Development) provides a registration form requiring, at a minimum: the name of the company or nonprofit entity, Public Registry certification (for legal entities), legal representative information, notice of operations, RUC and verification digit, address, economic activity, total number of employees on payroll, definition of the intern’s position and duties, tentative start date, and the Program’s administrative contact.

The form must be accompanied by:

• A copy of the Notice of Operation issued at least one year prior to the application
• A copy of the tax clearance certificate issued by the General Directorate of Revenue or the payment arrangement
• A copy of the clearance certificate issued by the Social Security Fund (CSS) or the payment arrangement
• A copy of the CSS payroll for the current month showing the total number of employees
• A copy of the insurance policy covering the intern, at minimum, against occupational risks or accidents during the internship, in line with the intern’s activities.

The Employment Directorate verifies the data and documentation; once verification is complete, the company receives confirmation that the company has been registered as a participant in the Program. If the company does not complete the process or fails to provide the required information, it may not participate. In addition, the company must review and update its information on the Program’s Portal within fifteen days following the close of each quarter.

MITRADEL may request additional information if deemed necessary. If the company or nonprofit entity does not complete the registration process or fails to submit the required information, it may not participate in the Program.

How is an intern registered and admitted to the Program?

Effective participation is formalized when the company registers the intern on the portal for purposes of the participation agreement. The company must enter the following intern data into the Program Portal: full name, ID number, sex, age, phone number, emergency contact, email address (if available), geographic address, diagnosis or SENADIS certification in case of disability, and academic qualifications, together with a copy of the corresponding diploma or degree. When the intern is a minor, signed authorization from the parent or legal representative is additionally required, along with a copy of their ID.

Intern selection and admission process:

The selection process is carried out directly by the company, taking into account applicants’ profile, academic background, and skills, while promoting equity, the inclusion of persons with disabilities, and equal treatment in access to positions. The incorporation of interns must not alter the company’s regular employment structure, assign interns duties identical to those of a permanent position or use interns to replace regular employees or existing positions.

Once the company selects the candidate, it must register them on the Program Portal.

The participation agreement:

MITRADEL adopts a standard participation agreement format, completed virtually on the portal. This agreement includes a description of the tasks or services, place of performance, duration, schedule, amount and method of payment of the stipend, and identification of the person responsible for supervising the intern. Once generated, the agreement is downloaded, signed by the company’s legal representative and by the intern (or their representative if a minor), and scanned and uploaded to the portal along with the signatories’ ID copies. The internship may not begin until the agreement is registered on the Program Portal.

Rules governing the internship:

At the outset, the company must conduct an induction that includes an introduction to the work area and the tutor, an explanation of duties, workplace conduct rules, health and safety standards, and procedures for reporting incidents or complaints. The company must designate a tutor or mentor responsible for guiding the intern’s tasks, overseeing their training progress, reporting incidents to MITRADEL, and participating in periodic evaluations.

The appointment of the tutor, as well as any subsequent change in the person serving in that role, must be reported on the Program Portal or included in the participation agreement.

The duration is set in the agreement and may not exceed one year. Additionally, special rules apply: the schedule may not exceed forty hours per week; it may be carried out during daytime or mixed scheduled shifts Monday through Friday, and on Saturdays only during daytime shifts; it does not include overtime, holidays, or days of national mourning; the company must provide protective equipment when the task involves physical effort or exposure to risks; the intern must maintain confidentiality regarding trade secrets and industrial processes; and the intern may not participate in union activities.

Termination, certification, and extension:

The internship ends upon completion of the period, resignation by the intern, the company’s decision due to duly substantiated serious breaches, company violations affecting the intern’s integrity or the Program’s objectives, closure of the company, or mutual agreement communicated to MITRADEL.

When the initial period is less than one year, the company may register an extension before expiration, provided the total combined time does not exceed one year.

Monitoring, complaints, and sanctions:

MITRADEL will monitor the Program’s implementation, and the Labor Inspection Directorate may conduct site visits to verify internship conditions and detect any discriminatory acts. An accessible and secure in-person, virtual, or telephone channel is available for complaints regarding the assignment of duties unrelated to the Program, abuse or harassment, breach of the agreement, missing or expired insurance policy, excessive working hours, or any other violation of the Law or its regulations.

A company that replaces formal jobs with interns or exceeds the permitted number of interns will be fined between two hundred fifty balboas (B/.250.00) and five hundred balboas (B/.500.00), and in the event of a repeat offense, MITRADEL may suspend its participation in the Program.

At Icaza, González-Ruiz & Alemán, we are ready to advise you on the proper implementation of Law 513 and its regulations at your company. Contact us bd@icazalaw.com.