Justified Dismissal: Legal Grounds And Correct Procedures

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,
Justified dismissal is one of the most delicate and complex figures within the field of labor law. This is the termination of the employment relationship by the employer, based on legitimate causes that must be clearly established in the legislation and in the employment contract.
Panama Employment and HR
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Justified dismissal is one of the most delicate and complex figures within the field of labor law. This is the termination of the employment relationship by the employer, based on legitimate causes that must be clearly established in the legislation and in the employment contract. Understanding the legal grounds, accepted reasons, and proper procedures for carrying out a justified termination is crucial for both employers and employees. In this article, we will explore in depth the legal bases of justified dismissal.

Dismissal based on justified cause is not only conceived in the legal sphere as one of the causes for termination of the employment relationship in Panama according to the Labor Code, but, in the constitutional sphere, it is granted a privileged place in which, without ambiguity, the impossibility of dismissing a worker without just cause and without the formalities established by law is established.

Whether they are disciplinary, non-attributable or economic in nature, dismissal with justified cause has formalities established in the Law that include prior or contemporaneous notification of the effective date and cause of the dismissal, as well as that said notification is sent to the worker in writing. In this sense, the formalities described are protective in nature and aim, on the one hand, to grant the worker the ability to know the cause or causes that are the basis of the dismissal measure and the facts with their unit of occurrence (date, time, place, conditions), in order to be able to challenge the measure before the labor jurisdiction in a timely manner if they consider it so, and on the other, so that the employer cannot validly allege grounds other than those notified by the future measure. Consequently, legally the worker notified in the forms provided for may judicially request to revoke the measure and request his reinstatement, or economically and failing that, request the compensation established in the Labor Code. Of the above, the only dismissal with just cause that does not require a written formality is the one that is communicated to domestic workers.

In this opportunity we are interested in highlighting the written formality required for dismissal with just cause. Panamanian law does not specify that the written formality of the dismissal must be physical or in any particular format. In practice, the written communication has been called "letter of dismissal", however, in our contemporaneity, digital formats take absolute preference and in view of this, there are interesting challenges in the labor world, which requires special and absolute legal certainty regarding the legality of the acts exercised by the labor subjects.

Regarding the possibility of communicating the justified dismissal by electronic or digital means, there being no legal impediment, it must be taken into consideration the importance of both, the effective reception by the worker, through the technological means intended for labor purposes, and the proper identification of the sender, the justified dismissal and its causes, in order to avoid confusion and mainly with what certain judicial pronouncements have called tacit dismissal, especially in cases of those who perform services in teleworking. However, we must note that within the labor presumptions it is recognized that every employment relationship ends by dismissal and that every dismissal is without just cause, unless there is evidence to the contrary. Therefore, any unilateral action of the employer carries with it the irreversible burden of proof.

Given the continuous and inevitable phenomenon of digitalization, and with regard to the current electronic document law in Panama, it is appropriate to recommend as an addition to the Panamanian Labor Code, the strengthening of unilateral acts, in this case of the employer, in relation to the written formality of dismissal with just cause and its full notification by electronic means for labor purposes and in that sense, full security is obtained for employers and workers.

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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