ARTICLE
29 August 2024

Resignation: Formal Or Presumptive Unilateral Capacity Of Workers?

EP
ECIJA Panama

Contributor

ECIJA is one of the leading full-service firms in the Spanish market, consolidating its position as the Spanish firm with the largest presence in Latin America. ECIJA Panama evolved from being a boutique practice to one that now partners with the globally recognised Spanish-based law firm, that unites us with more than 200 partners in Latin America. Our practice is constantly moving forward and taking proactive steps to identify and embrace new and potential clients in innovative fields that cover culture, sports and entertainment,
In cases where there is doubt about the application or interpretation of labor provisions, the most beneficial for the worker will prevail. The foregoing is condensed in Article 6 of the Labor Code
Panama Employment and HR

In cases where there is doubt about the application or interpretation of labor provisions, the most beneficial for the worker will prevail. The foregoing is condensed in Article 6 of the Labor Code, which maximizes the efforts of the labor legislation, in conclusion, to guarantee the protection of workers. Additionally, the presumptions established in article 737 of the Labor Code must be considered as elements that consolidate such protection in favor of the workers. We will address one of the forms of termination of the employment relationship, the resignation, and whether its essence corresponds to a strict formality or whether presumption precepts apply in favor of the workers.

Every employee has the full power, freely and unilaterally, to terminate the employment relationship with his employer. The act and capacity to resign in itself, does not entail a formality that operates in favor of the employee, on the contrary, the formality required on such act will favor the interests of the employer. The employee's will to resign must be in writing and must be countersigned by the Ministry of Labor, for the purpose of ensuring that, in the future, the employer has the certainty that the presumption that every relationship ends due to unjustified dismissal will not be applied against him/her, unless proven otherwise, since the resignation letter not countersigned by the labor authority will not constitute full evidence in a possible trial. The employee is required to give fifteen days' notice; if such term is not given, the employee is obliged to pay the amount corresponding to one week's salary.

The unilateral act of resignation requires a written formality and the ratification of the Ministry of Labor. Panamanian law does not recognize or grant value to a verbal resignation.

It is necessary to point out that the Labor Code contemplates the justified resignation, which is nothing more than the right of the employee to resign due to causes attributable to and the responsibility of the employer, as detailed in Article 223 of the Labor Code. This type of resignation entitles the employee to request the payment of the amounts corresponding to the indemnity referred to in articles 224 and 227 of the Labor Code. This type of resignation requires the aforementioned formalities, however, the cause must be stated in detail, and the facts that support it, so that these can be proven in court. That is to say, the written formality endorsed by the Ministry of Labor is not enough, but in order for the justification of the resignation to be effective, the reasons for the resignation must be clearly stated. It is not enough to estimate brief reasons not related to those described and numbered in article 223 of the Labor Code, but on the contrary, the estimated formalities must be complied with and the justification must be justified in the assumptions listed in said article.

In labor matters, it is extremely relevant that both workers and employers fully comply with the estimated for the cases of termination of the work relationship due to resignation according to its type or typology, and that, consequently, the rule of presumption does not apply in the absence of the estimated here, that all work relationships end due to unjustified dismissal unless proven otherwise.

Article published by Antonio Alberto Vargas in Issue 7 of Legal Industry Reviews Panama.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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