Bill 652.

Summary.

The bill would create a special, temporary economic protection scheme for people who involuntarily lose their jobs. It would cover public servants and private sector workers on fixed term or indefinite contracts when their employment ends for reasons not attributable to them. It defines involuntary job loss through circumstances such as an employer’s unilateral decision, elimination of a position, staff reductions, administrative restructuring, and removal from a temporary appointment without fault on the worker’s part. It also defines the grace period as a suspension of payment enforceability for a maximum of three months, and deferral as moving suspended installments to the end of the agreed payment schedule. An affected person could request the benefit for up to three months.

The benefit would exclude people who resign voluntarily, are dismissed for disciplinary reasons, end their employment by mutual agreement, voluntarily retire or take a pension, or simultaneously hold another permanent paid job. It could apply to mortgage, personal and vehicle loans; credit from banks, cooperatives and finance companies; credit cards; and other civil or commercial credit obligations.

During the grace period, only the enforceability of payment would be suspended. There would be no default interest, surcharges or penalties, acceleration, enforcement proceedings based exclusively on the suspended installments, or negative reports to credit information agencies. The installments would move to the end of the original schedule without debt forgiveness, novation, release of debt, permanent amendment of the contract, or extinguishment of the debtor’s obligations. Where unemployment insurance, credit protection insurance or another contractual coverage mechanism applies, that mechanism would take priority and the benefit would cover only obligations left uncovered.

During the grace period, drinking water, electricity and residential internet service could not be disconnected solely because of the authorized deferral. The National Public Services Authority (Autoridad Nacional de los Servicios Públicos) would regulate the conditions for this protection. An application would have to be filed within thirty calendar days after employment ends, accompanied at minimum by a termination letter or removal order, certification from the employer or competent authority, and a sworn statement that the applicant has no other permanent employment relationship. The creditor would have ten working days to decide and would have to give reasons for any refusal.

Oversight, within each authority’s legal powers, would fall to the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá), the Panamanian Autonomous Cooperative Institute (Instituto Panameño Autónomo Cooperativo), the Consumer Protection and Competition Defense Authority (Autoridad de Protección al Consumidor y Defensa de la Competencia), and the National Public Services Authority. The Executive Branch (Órgano Ejecutivo) would issue implementing regulations within three months after promulgation, and the law would take effect two months after promulgation. The provisions could concern workers, employers, banks, cooperatives, finance companies, insurers and public service providers.