AOR or EOR? What's the Difference?

Agency of Record versus Employer of Record ... its all in the compliance. Don't be fooled into saving money at the expense of compliance.

Why Do I Need an EOR?

Partnering with an Employer of Record (EOR) is crucial to ensure legal compliance, mitigate risks, and streamline your global expansion, allowing you to focus on your core business and achieve unprecedented success.

Panama

How to Hire Workers in Panama | Employer of Record (EOR) in Panama

Navigating the labor laws and regulations of Panama is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Panama. Expand into the Panamanian market with confidence, knowing that you have a reliable partner managing your international employment needs.

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Panama, known for its booming economy, strategic location, and vibrant culture, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Panama, offering comprehensive solutions for building your contingent workforce.

With a population of over 4.3 million people, Panama boasts a young and dynamic workforce. From the modern skyline of Panama City to the pristine beaches of Bocas del Toro, the country offers a unique blend of culture and natural beauty.

When expanding your business into Panama, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into Panama. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.

Fixed-Term Contracts

Fixed-term contracts are permitted for a maximum of one year. They can be renewed up to 3 times. Fixed-term contracts can be terminated so long as all costs/payments through the end of the contract terms (e.g. salary, etc.)

Probationary Periods

Probationary periods are allowed for a maximum of 3 months. The process for termination is notification by the employer, it takes immediate effect.

Holidays

There are 14 public holidays defined by the Panamanian government. They are considered paid days off. If a worker is required to work they are to be paid 3x their regular rate.

Vacation

After 11 months, 30 days. Unused leave will carry over year to year and is paid at the time of termination.

Sick Leave

18 Days are paid by the employer. The employee needs to get a medical certificate issued by a doctor.

Working Hours

8 hours per day/40 hours per week

Overtime

25% over the regular hourly rate. Limited to 9 hours per week. Night work is 50% over the regular hourly rate.

Termination

After probation period, 30 days notice is required. Must provide notice to the worker, if the position is no longer needed it is considered a termination without cause and full indemnification must be paid to the employee.

Unique Country Nuances

Vacation Provision: 9.09%13th Month Provision: 8.33%Social Security on Vacation: 1.11%Educational Insurance on Vacation: 0.14%Professional Risk on Vacation: 0.19%13th Month Social Security: 0.98%13th Month Risk: 0.17%Seniority Bonus Provision: 1.92%Termination Provision: 6.54%13th Month Vacation: 0.76%Indemnification Vacation: 0.59%TOTAL: 29.82%

Mandatory Employer Costs

Employer Social Security: 12.25%Employer Educational Insurance: 1.50%Professional Risk: 2.10%TOTAL: 15.85%

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.