expatplayer

If you hire someone to do work for you in Panama are there any important legal issues involved?

GlobalGreen

Yes... there is a lot to watch out for.

Will the person you hire be an employee (for example, he/she works from 9 - 5 and receives a fixed salary) or a contractor (he/she does work and receives money for the work completed - no matter how long he/she needs to complete the work).

In my experience, it is always advisable to sign a contract (verbal agreement will not help you when the person working for you claims he has been working for you for three years, when in reality it was only three months).

Also, the contract should state the exact terms (the work that person does, and money he will get for it). It is also customary to start with a 3 months trial period where the "worker" can be fired without any additional compensation.

The laws in Panama a very protective of the worker, so make sure that you always have proof, especially if the worker doesn't do his/her job.

There are more things, but these are what comes to mind.

themark

Do you think it is better to get a lawyer to draft the contract?

Lalaguayaba

Of course! That's what laywers are for in the first place! If you are not a qualified attorney admitted to the Panamanian bar, then your contract could be shot to pieces by the bureaucracy.

Cheers.

expatplayer

The upside to writing it yourself is that it is free.

Lalaguayaba

Sure, but free doesn't necessarily equal 'legally binding.' I prefer my contracts and agreements to be legally binding in a court of law--should it ever need to be proven so. I'd hate to have a contract that I wrote (for free--and I'm not a lawyer) be put to the legal test should someone in my employ or contract come after me for $$.

Cheers.

tatiane

Remember that the contracts involving maid services also need to be approved by the Panama Labor Department.

Regards,
Tatiane

coolandhot

Is that just for maids, or for all employees? Are the contracts invalid if they are not approved by the Panama Labor Department?

Lalaguayaba

Gardeners, drivers, laundresses, guys who paint the fence or walk the dog...if you want to deal with the paperwork, then the Labor Dept. has it for you! Think of it as much as protection for you as protection for the employee; should someone working for you get hurt on the job--then you are liable, but with appropriate paperwork, it is limited.

None of it is any fun, and there are always going to be ppl working w/o a 'contract.' Most work on a word and handshake...

Cheers.