Teleworking Law Regulations

Executive Decree No. 133 of September 16, 2020
That Regulates the Teleworking Law and issues other provision


Through Executive Decree No. 133 of September 16, 2020, the Teleworking Law is regulated, formalizing all the agreements reached in the Tripartite Dialogue Table for the Economy and Labor Development.


The Regulation covers the following points:

  1. The Teleworking modality is voluntary, and the worker’s right to disconnect must be guaranteed so that he can enjoy his rest periods. Furthermore, work can be mobile and supplementary.
  2. The teleworking workplace is defined as follows: (a) Full-time: the workplace is any location other than the employer’s place of business, including, but not limited to, the worker’s home, where work is performed on behalf of the employer. (b) Part-time: the workplace may also include the employer’s premises, aside from providing services outside said facilities.
  3. Telework overtime will be governed by the limitations, surcharges, and other provisions established in the Labor Code.
  4. The employer must keep a record of the hours worked by the employee through computer applications, telecommunications, and similar means that the employer determines, and that can be duly verifiable by both parties. These records must be available to workers for consultation at all times.
  5. The employer’s orders, for the performance of telework, may be issued by computer, telecommunications or similar means, without prejudice to another modality, which provides certainty about the authority that issued it, clarity of the order, date, and its direct relationship with the execution of the telework modality in development.
  6. Professional risks include events occurring at telework locations, including the worker’s home, when such events are due to work performed on behalf of the employer. Work accidents related to on-call work will also be included. The Social Security Fund will be responsible for investigating and determining the nature of the events, according to the regulations in force on the matter.
  7. Telework agreed in an addendum to the employment contract is reversible both for the employer and the worker. The term given by the employer to the worker shall be the same to be given to the employer. Teleworking agreed in the employment contract will only be reversible per Article 197 of the Labor Code.
  8. It is the employer’s obligation to supply the worker with the tools, instruments, materials, and software necessary to execute telework. These resources must be used only for the performance of work activities. The employer must ensure that the worker can connect to the necessary IT telecommunication media and similar means to carry out work. In the event of failures in telecommunications services or electricity, the worker will promptly notify the employer.
  9. The delivery of the equipment, after its review, will be recorded in writing and signed by both parties. It will be the worker’s responsibility to maintain said tools, instruments, materials, and software in good condition and will immediately notify his employer of any fact that has caused or may cause damage to said equipment.
  10. The employer may, with prior notice to the worker, inspect the equipment delivered for its update or revision.
  11. The worker will not be responsible for the deterioration of the tools, materials, or instruments received when caused by use, natural wear, unforeseeable circumstances, low quality, or defects. Similarly, in the event of deterioration or normal wear and tear of the equipment, the employer will be obliged to replace it per the provisions of Article 128, paragraph 3, of the Labor Code.
  12. The worker must return all equipment and materials provided when the teleworking modality ends.
  13. The installation of any software that violates the privacy of the worker or his family is prohibited.
  14. The employer will cover expenses related to electricity and internet services, as well as the equipment, maintenance, repair, tools, training, and other costs inherent to the provision of the service in the teleworking modality.
  15. In case of doubt in the interpretation of the provisions set forth in this Regulation, the principles and rules of the Labor Code will be applied.

For legal advice on this law or any other matter related to Panamanian labor law, contact us at

Download the full text of the Executive Decree (in Spanish)

Leave a Reply

Your email address will not be published. Required fields are marked *

Open chat
How may we assist you?