Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

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

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 of the social security legislation in relation to compensation for employment injury with a view to giving effect to Articles 5 and 7 of the Convention.

Article 5 (in conjunction with Article 2(1)). Payment of compensation in the form of periodical payments without limit of time. The Committee recalls that 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. In this respect, the Committee has requested the Government on numerous occasions 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. In its reply, the Government reiterates the reasons put forward previously to the effect that, in order to amend these provisions, it is necessary to undertake actuarial studies and to have the agreement of the sectors concerned in relation to occupational risks. The Committee deplores the fact that over almost two decades the Government has not undertaken the necessary actuarial studies and has not initiated dialogue with the social partners with a view to undertaking the reforms indicated.

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 this respect, the Government indicates in its report that “... at the present time, there has been no initiative in this respect either by the social partners, or by the executive authorities”.

The Committee regrets to note that the Government has not, for such a long period, taken any steps to initiate the reform process of the legislation on employment risks and it urges the Government to take appropriate measures in the near future to bring its legislation into conformity with Articles 5 and 7 of the Convention.