In Panama there are more than 500 private employment agencies, of which only 75 have a license

The national director of Employment of the Ministry of Labor and Labor Development (Mitradel), said that according to a report from the Ministry of Commerce and Industries (MICI) in Panama there are more than 500 private employment agencies, of which only 75 have license.

The Mitradel has initiated inspections of private placement agencies to verify compliance with labor standards for the protection of job seekers.

Miter explained in Telemetro Reporta, that Law No. 18 of May 27, 1999, through which Panama adopted a commitment of the Member States of the International Labor Organization (ILO), establishes that private placement agencies, in addition to a notice of operation, they need a license granted by Mitradel to be able to carry out personnel intermediation and recruitment.

“We are in the process of looking for them and inviting them to come get their license because we don’t want to affect any company, we want them to comply with the law. Private placement agencies are a helping arm, but fulfilling and preserving rights”, he maintained.

“The license must be renewed every two years, and soon this process will be virtual,” Miter said.

Employment agencies have the function of mediating between companies and job seekers free of charge, in order to help them find work in coordination with public employment services, career guidance or personnel selection.

The companies that engage in these activities must submit bi-monthly reports on the employment actions carried out and must keep the data of job seekers strictly confidential.

The rule establishes sanctions ranging from one thousand dollars in the first offense to the cancellation of the operation notice in the third recurrence of non-compliance with the rule.

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