In Panama, the dismissal of an employee must have just cause as outlined in the labor code. Termination in writing must be provided outlining the cause and the date that the termination was given.
A dismissal that does not follow the laws outlined in the labor code is considered unjustified and the employee may be able to make a claim with a labor court. If the labor court does not resolve the claim within 60 days, the employer may continue with the dismissal.
However, there are certain classifications of employees that may be dismissed without just cause (domestic workers, fishing or agricultural workers, retail workers).
The notice period in Panama is:
Notice is not mandatory except for employees dismissed for just cause.
For employees who are dismissed without just cause, they are entitled to 30 days’ notice.