In the field of labor law, it is necessary to be constantly updated and at the forefront, on key elements of innovation that, not only boost productivity, but also allow adequate protection and sufficient guarantee for the subjects that symbiotically star in our labor law. Such updates do not always arise or are not always presented in an attenuated and harmonious manner, but, on the contrary, arise from situations of extreme urgency, and why not say it, in times of crisis and accident.
In Panama, the outbreak of the COVID-19 pandemic was an unprecedented case contrasted with the current Labor Code. The confinement for health reasons and the strict restriction of mobility, propitiated the scenario to formalize legal acts digitally by means of technological tools provided by the Panamanian State. Thus, the Ministry of Labor provided that, through e-mails and online digital platforms, an employment relationship could be initiated, suspended, reduced, modified and even terminated, as in many cases occurred with terminations by mutual agreement.
Having said the foregoing, we will now set forth with due diligence certain considerations on the electronic signature in labor contracts in Panama.
Paragraph 9 of article 68 of the Labor Code describes as one of the minimum contents for an employment contract, the signature of the parties (if they are able to do so), fingerprinting in the presence of witnesses who sign at their request and proof of official approval of the contract in the cases provided for. As indicated by the special labor law, it is not required for its validity and legal effectiveness, a special type of signature to be subscribed by the parties in such legal act. It is worth adding that the nature of this type of contracting allows the proper identification of each of the contracting parties, not only by the type of legal relationship, but in the strict sense, the contract must include relevant data of the parties, in addition to the economic component related to the salary.
Meanwhile, the regulations relating to electronic signatures in Panama technically elevate the matter in contrast to the issue raised here. Proof of this, is the definition of electronic signature proposed in numeral 18 of Article 2 of Executive Decree No. 684 of October 18, 2013. "Electronic Signature: Technical method to identify a person and to indicate that such person approves the information contained in a data message or electronic document".
In context, in labor matters there will be contracts that do not essentially require to be in writing according to the Labor Code, others mandatorily, such as the contracts of foreign workers who may opt for a work permit, and in general we always recommend the corresponding execution of the same. Therefore, in cases where there is a written employment contract, the provisions of Article 68 of the Labor Code must be complied with regarding the signature, and in the absence thereof, the employer must abide by the presumptions established by law.
Therefore, the parties to an employment relationship who agree to sign a written contract may, without restriction, sign the same by means of a simple electronic signature, or a digitized handwritten signature, as was adopted during the pandemic period in our country. However, we consider it appropriate to update the labor regulations, since by requiring the signature in written contracts, and although according to the Code it is not an element to recognize or not an employment relationship, the little or scarce normative reference could affect in written documents that modify or conclude the employment relationship, for which the due acceptance of the information and identification of the person of the signatory is required, in order to verify aspects such as the will of the worker, for example, in cases of termination by mutual agreement.
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.