Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Workmen's Compensation (Accidents) Convention, 1925 (No. 17) - Panama (Ratification: 1958)

The Committee notes that the Government’s report contains no reply to its previous comments. It is therefore bound to repeat its previous observation, which read as follows:

The Committee noted previously that, according to the information provided by the Government in its last report, the necessary measures to bring the provisions of the national legislation fully into conformity with the Convention had not yet been adopted. The Government indicates in this respect that it has not been in a position to adopt the necessary amendments in view of the lack of consensus between the social partners concerning an amendment to the national legislation. The Committee recalls that for many years it has been drawing the Government’s attention to the need to amend certain provisions of the Labour Code and the social security legislation in relation to compensation for employment injury. When ratifying the Convention in 1958, the Government made a commitment to adopt all the necessary measures to give effect to its provisions. In these circumstances, the Committee deplores the lack of progress achieved in bringing the national legislation into conformity with the Convention and is bound to draw the Government’s attention once again to the following points.

Article 5 of the Convention (in conjunction with Article 2, paragraph 1). Payment of compensation in the form of periodical payments without limit of time. In its previous comments, the Committee emphasized the need to amend sections 306 and 311 of the Labour Code in order to provide for the payment of compensation in the form of periodical payments without limit of time in the event of an occupational accident resulting in permanent incapacity or death. Indeed, workers who are not covered by the compulsory social security scheme are governed by the provisions of the Labour Code respecting compensation for employment injury, which in such cases only guarantee them the provision of benefit for a period of 12 months at the expense of the employer.

Under the terms of Article 2, paragraph 1, of the Convention, all workers, employees and apprentices employed by any enterprise, undertaking or establishment of whatsoever nature, whether public or private, have to be guaranteed the protection afforded by the Convention, with the second paragraph of this Article enumerating limitatively the exceptions authorized by the Convention. Accordingly, workers covered by the Convention but who are not covered by the social security scheme also have to benefit from the protection afforded by the Convention. The Committee notes from the statistical data provided by the Government that the number of workers paying contributions to the social security scheme was around 730,000 in 2005. However, the Government does not specify the total number of employees in the country, as it was requested to do, so that the Committee could compare the number of persons covered by the social security scheme with the total number of workers. The Committee therefore once again requests the Government to provide this information with its next report and trusts that the Government will be in a position to align sections 306 and 311 of the Labour Code with the relevant provisions of the social security legislation respecting compensation for employment injury so as to guarantee the protection afforded by the Convention for all workers to whom it is applicable.

Article 7. Provision of additional compensation to workers suffering employment injury when their condition requires the constant help of another person. In its previous comments, the Committee emphasized that neither the Labour Code nor the social security legislation concerning compensation for employment injury (Decree No. 68 of 31 March 1970) provides for the granting of additional compensation to injured workers whose condition requires the constant help of another person. In its report, the Government refers to the adoption, during the period covered by the report, of Act No. 51 of 27 December 2005 reforming the Constituent Act of the Social Security Fund. However, this new text has not taken into account the Committee’s comments with regard to the need to bring the national legislation into conformity with this provision of the Convention in view of the lack of consensus on the subject between the social partners and the economic difficulties faced by the country. While taking due note of this information, the Committee once again hopes that the Government will be able to re-examine this matter and take the necessary measures to give effect to this provision of the Convention, which is intended to guarantee the provision of additional compensation to injured workers whose condition requires the constant help of another person.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.