Dismissal in Panama: Just Causes, Letter, Notice and Severance
In short: In Panama, an employer can dismiss a worker on an open-ended contract only for a just cause provided by law and following the formalities of the Labor Code (articles 211 to 214). The dismissal must be notified in writing, with the date and the specific causes. The 30-day notice, or its payment, is required by article 212 only when certain workers are dismissed without cause, such as those with under two years of service. Updated in October 2026 using the text that includes reforms up to Law 44 of 1995. Contents of this guide The general rule and…












