Panama – Employer of Record
Globalization Partners provides employer of record services for clients that want to hire employees and run payroll without first establishing a branch office or subsidiary in Panama. Your candidate is hired via Globalization Partners’ Panama PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Table of Contents
- Basic Facts About Hiring in Panama
- Panama Holidays
- Employment Contracts in Panama
- Why Globalization Partners
Our Global Employer of Record Platform™ and Global PEO service enables clients to run payroll in Panama while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Panama.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. Globalization Partners allows you to harness the talent of the brightest people in 150 countries around the world, quickly and painlessly.
Basic Facts About Hiring in Panama
Panama is located in Central America and has a population of 3.864 million. The capital city of Panama is Panama City which has a population of 880,691. Panama is the only place in the world where you can see the sun rise on the Pacific and set on the Atlantic.
When negotiating terms of an employment contract and offer letter with an employee in Panama, it may be useful to keep the following in mind:
- New Year’s Day
- Martyr´s Day
- Carnival/Shrove Tuesday
- Good Friday
- Labor Day / May Day
- Independence Day
- Colon Day
- Shout in Villa de los Santos
- Independence from Spain
- Christmas Day
Employment Contracts in Panama
In Panama, employment contracts can be oral or written, but it is best practice to put a strong, written contract in place, in Spanish, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Panama should always state the salary and any compensation amounts in American Dollars rather than a foreign currency. The employment contract template is part of the service with Globalization Partners; no need to draft a separate template if you use our employer of record and PEO service in Panama.
Why Globalization Partners
Establishing a branch office or subsidiary in Panama to engage a small team is time-consuming, expensive and complex. Panamanian labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. Globalization Partners makes it painless and easy to expand into Panama. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Panama PEO and Global Employer of Record Platform provides you peace of mind so that you can focus on running your business.
If you would like to discuss how Globalization Partners can provide a seamless employee leasing or PEO solution for hiring employees in Panama, please contact us.