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Oman

Section 7. Worker Rights

The law provides that workers can form and join unions, as well as conduct legal strikes and bargain collectively, but with significant restrictions. The law provides for one general federation, to which all unions must affiliate, and which represents unions in regional and international fora. The law requires a minimum of 25 workers to form a union, regardless of company size. The law requires an absolute majority of an enterprise’s employees to approve a strike, and notice must be given to employers three weeks in advance of the intended strike date. The law allows for collective bargaining; regulations require employers to engage in collective bargaining on the terms and conditions of employment, including wages and hours of work. Where there is no trade union, collective bargaining may take place between the employer and five representatives selected by workers. The employer may not reject any of the representatives selected. While negotiation is underway, the employer may not act on decisions related to problems under discussion. The law prohibits employers from firing or imposing other penalties on employees for union activity, although it does not require reinstatement for workers fired for union activity.

Despite the legal protections for labor unions, no independent organized labor unions existed. Worker rights continued to be administered and directed by the General Federation of Oman Workers (GFOW).

Government-approved unions are open to all legal workers regardless of nationality, though the law prohibits members of the armed forces, other public security institutions, government employees, domestic workers, as well as individuals convicted of criminal activity or acts against the security of the country or national unity from forming or joining such unions. In addition, labor laws apply only to workers who perform work under a formal employment agreement and excludes domestic workers.

The law prohibits unions from accepting grants or financial assistance from any source without the Ministry of Manpower’s prior approval. All unions are subject to the regulations of the government federation and may be shut down or have their boards dismissed by the federation.

The government generally enforced applicable laws effectively and respected the rights to collectively bargain and conduct strikes, although strikes in the oil and gas industries are forbidden. The GFOW reported in a survey conducted by the International Trade Union Confederation that employers bypassed collective bargaining and retaliated against workers who participated in strikes. The government provided an alternative dispute resolution mechanism through the Ministry of Manpower, which acted as mediator between the employer and employee for minor disputes such as disagreement over wages. If not resolved to the employee’s satisfaction, the employee could, and often did, resort to the courts for relief. The country lacked dedicated labor courts, and observers noted the mandatory grievance procedures were confusing to many workers, especially foreign workers. The Ministry of Manpower had sufficient resources to act in dispute resolution. Union leaders reported intimidation by companies for their activities and complained they were passed over for promotion.

Freedom of association in union matters and the right to collective bargaining exist, but often the threat of a strike can prompt either company action to resolution or spur government intervention. Strikes rarely occurred and were generally resolved quickly, sometimes through government mediation.

The law prohibits all forced or compulsory labor, but the law explicitly excludes domestic workers. All police officials underwent training in how to identify victims of trafficking in persons to help them identify cases of forced or compulsory labor.

Conditions indicative of forced labor were present. By law all foreign workers, who constituted approximately one-half of the workforce and the majority of workers in some sectors, must be sponsored by a citizen employer or accredited diplomatic mission. Some men and women from South and Southeast Asia, employed as domestic workers or as low-skilled workers in the construction, agriculture, and service sectors, faced working conditions indicative of forced labor, including withholding of passports, restrictions on movement, usurious recruitment fees, nonpayment of wages, long working hours without food or rest, threats, and physical or sexual abuse. These situations were generally considered civil or contract matters by authorities, who encouraged dispute resolution rather than criminal action. Authorities continued to rely on victims to identify themselves and report abuses proactively, rather than proactively investigating trafficking in vulnerable communities.

Sponsorship requirements left workers vulnerable to exploitative and abusive conditions and made it difficult for them to change employers (see section 2.d.). Some sponsors allow their employees to work for other employers, sometimes in return for a fee. This practice is illegal, but enforcement was weak, and such arrangements left workers vulnerable. The government clarified that sponsors of domestic workers are not allowed to send their workers to another home to work, but the regulation was weakly enforced. Some employers of domestic workers, contrary to law, withheld passports and other documents, complicating workers’ release from unfavorable contracts and preventing workers’ departure after their work contracts expired. In some cases, employers demanded exorbitant release fees totaling as much as four months’ salary before providing a “no-objection certificate” (NOC) to permit the worker to change employers. Without this NOC, foreign workers are required to either depart the country for a minimum of two years or remain in their current position. There were reports that sponsors were reluctant to provide NOCs, which would result in loss of the foreign labor certificate for that position.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The minimum age for employment is 16, or 18 for certain hazardous occupations. Employees younger than 18 may work only between the hours of 6 a.m. and 6 p.m. and are prohibited from working for more than six hours per day, on weekends, or on holidays. The law allows exceptions to the age requirement in agricultural works, fishing, industrial works, handicrafts, sales, and administrative jobs, under the conditions that it is a one-family business and does not hinder the juvenile’s education or affect health or growth.

The Ministry of Manpower and Royal Oman Police are responsible for enforcing laws with respect to child labor. The law provides for fines for minor violations and imprisonment for repeat violations. Employers are given time to correct practices that may be deemed child labor.

In 2018 the country made a moderate advance in eliminating the worst forms of child labor, which did not appear to be a widespread problem. The government does not publish information on the enforcement of child labor laws and lacks a reciprocal mechanism between the labor inspectorate and social services.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings/ .

d. Discrimination with Respect to Employment and Occupation

Labor laws and regulations do not address discrimination based on race, sex, gender, nationality, political views, disability, language, sexual orientation or gender identity, HIV-positive status or having other communicable diseases, or social status. Discrimination occurred based on gender, sexual orientation, nationality, disability and gender identity. Foreign workers were required to take HIV/AIDS tests and could only obtain or renew work visas if the results were negative.

Although some educated women held positions of authority in government, business, and media, many women faced job discrimination based on cultural norms. The law entitles women to paid maternity leave and equal pay for equal work. The government, the largest employer of women, observed such regulations, as did many private sector employers.

The law provides persons with disabilities the same rights as other citizens in employment, and the provision of other state services. Persons with disabilities, however, continued to face discrimination. The law mandates access to buildings for persons with disabilities, but many older buildings, including government buildings and schools, did not conform to the law. The law also requires private enterprises employing more than 50 persons to reserve at least 2 percent of positions for persons with disabilities. Authorities did not systematically enforce this regulation.

For further discussion of discrimination, see section 6.

The country has a minimum monthly wage for citizens, but it does not apply to noncitizens in any occupation. Minimum wage regulations do not apply to a variety of occupations and businesses, including small businesses employing fewer than five persons, dependent family members working for a family firm, or some categories of manual laborers. Most citizens who lived in poverty were engaged in traditional subsistence agriculture, herding, or fishing, and generally did not benefit from the minimum wage. The private sector workweek is 45 hours and includes a two-day rest period following five consecutive days of work. Government workers have a 35-hour workweek. The law mandates overtime pay for hours in excess of 45 per week.

The government sets occupational health and safety standards. The law states an employee may leave dangerous work conditions without jeopardy to continued employment if the employer was aware of the danger and did not implement corrective measures. Employees covered under the labor law may receive compensation for job-related injury or illness through employer-provided medical insurance.

Neither wage and hour nor occupational safety and health regulations apply to domestic workers.

The Ministry of Manpower is responsible for enforcing labor laws, and in 2018 it employed inspectors in Muscat and around the country. It generally enforced the law effectively with respect to citizens; however, it did not always effectively enforce regulations regarding hours of employment and working conditions for foreign workers.

Labor inspectors performed random checks of worksites to verify compliance with all labor laws. Inspectors from the Department of Health and Safety of the Labor Care Directorate are responsible for enforcement of health and safety codes. Limited inspections of private sector worksites are required by law to deter or redress unsafe working conditions in the most dangerous sectors.

The Ministry of Manpower effectively enforced the minimum wage for citizens. No minimum wage existed for noncitizens. In wage cases the Ministry of Manpower processed complaints and acted as mediator. In a majority of cases, the plaintiff prevailed, gaining compensation, the opportunity to seek alternative employment, or return to their country of origin in the case of foreign laborers, although they rarely used the courts to seek redress. The ministry was generally effective in cases regarding minor labor disputes.

The government increased efforts during 2018 to prevent trafficking in persons violations, which disproportionately affected foreign workers.

Foreign workers were vulnerable to poor, dangerous, or exploitative working conditions. There were reports that migrant laborers in some firms and households worked more than 12 hours a day without a day off for below-market wages. Employers often cancelled the employment contracts of seriously sick or injured foreign workers, forcing them to return to their countries of origin or remain in the country illegally. Some labor inspections focused on enforcing visa violations and deporting those in an irregular work visa status rather than verifying safe and adequate work conditions.

There are no maximum work-hour limits for domestic workers nor any mandatory rest periods, although the contract between the employer and worker can specify such requirements. There were some reports that domestic workers were subject to overwork with inadequate rest periods. Separate domestic employment regulations obligate the employer to provide domestic workers with free local medical treatment throughout the contract period. Penalties for noncompliance with health regulations were insufficient to deter violations. Some domestic workers were subjected to abusive conditions.

There was no data available on workplace fatalities or safety.

Pakistan

Section 7. Worker Rights

The vast majority of the labor force was under the jurisdiction of provincial labor laws. The 2010 18th constitutional amendment, which devolved labor legislation and policies to the four provinces, stipulated that existing national laws would remain in force “until altered, repealed, or amended” by the provincial governments. Provinces implemented their own industrial relations acts in 2011. In 2012 Parliament passed a new industrial relations act that took International Labor Organization (ILO) conventions into account but applied them only to the Islamabad Capital Territory and to trade federations that operated in more than one province.

The role of the federal government remained unclear in the wake of devolution. The only federal government body with any authority over labor issues was the Ministry of Overseas Pakistanis and Human Resource Development, whose role in domestic labor oversight was limited to compiling statistics to demonstrate compliance with ILO conventions. At the provincial level, laws providing for collective bargaining rights excluded banking and financial sector workers, forestry workers, hospital workers, self-employed farmers, and persons employed in an administrative or managerial capacity.

In July the Balochistan High Court ordered the cancellation of the registration of all trade unions formed by government employees, ruling that such workers are not allowed to form a union under the Balochistan Industrial Relations Act of 2010. The registrar of Balochistan trade unions thereafter cancelled 62 trade unions’ registration. The affected unions’ appeal at the Supreme Court was pending at year’s end.

Without any federal government entity responsible for labor, the continued existence of the National Industrial Relations Commission remained in question. The 2012 Federal Industrial Relations Act stipulates that the commission may adjudicate and determine industrial disputes within the Islamabad Capital Territory to which a trade union or federation of trade unions is a party and any other industrial dispute determined by the government to be of national importance. This provision does not provide a forum specifically for interprovincial disputes but appears to allow for the possibility that the commission could resolve such a dispute. Worker organizations noted the limited capacity and funding for labor relations implementation at the provincial level.

The law prohibits state administrators, workers in state-owned enterprises, and export processing zones, and public-sector workers from collective bargaining and striking. Nevertheless, state-owned enterprises planned for privatization faced continuous labor strikes. Provincial industrial relations acts also address and limit strikes and lockouts. For example, the KP Act specifies that when a “strike or lockout lasts for more than 30 days, the government may, by order in writing, prohibit the strike or lockout” and must refer the dispute to a labor court.

Federal law defines illegal strikes, picketing, and other types of protests as “civil commotion,” which carries a penalty if convicted of up to life imprisonment. The law also states that gatherings of four or more persons may require police authorization, which is a provision authorities could use against trade union gatherings. Unions were able to organize large-scale strikes, but police often broke up the strikes, and employers used them to justify dismissals. In March and May, Sindh schoolteachers and nurses staged protests against recruitment and promotion rules. Police used force against the protest, causing injury to dozens of protesters, and arresting several of them. On July 17, police beat and used water cannons to halt a public protest by nurses from public sector hospitals across Sindh for increased salaries and better facilities. Police detained 20 protesters but released them later. Marches and protests also occurred regularly, although police sometimes arrested union leaders.

Enforcement of labor laws remained weak, in large part due to lack of resources and political will. Most unions functioned independently of government and political party influence. Labor leaders raised concerns regarding employers sponsoring management-friendly or only-on-paper worker unions–so-called yellow unions–to prevent effective unionization.

There were no reported cases of the government dissolving a union without due process. Unions could be administratively “deregistered,” however, without judicial review.

Labor NGOs assisted workers by providing technical training and capacity-building workshops to strengthen labor unions and trade organizations. They also worked with established labor unions to organize workers in the informal sector and advocated policies and legislation to improve the rights, working conditions, and wellbeing of workers, including laborers in the informal sector. NGOs also collaborated with provincial governments to provide agricultural workers, brick kiln workers, and other vulnerable workers with national identification so they could connect to the country’s social safety net and access the benefits of citizenship (such as voting, health care, and education).

The law prohibits all forms of forced or compulsory labor, cancels all existing bonded labor debts, forbids lawsuits for the recovery of such debts, and establishes a district “vigilance committee” system to implement the law. Federal and provincial acts, however, prohibit employees from leaving their employment without the consent of the employer, since doing so would subject them to penalties of imprisonment that could involve compulsory labor.

The law defines trafficking in persons as recruiting, harboring, transporting, providing, or obtaining another person (or attempting to do so) through force, fraud, or coercion for the purpose of compelled labor or commercial sex. The penalty for conviction of trafficking in persons is sufficient to deter violations. With regard to sex trafficking, however, by allowing for a fine in lieu of imprisonment, these penalties were not commensurate with those for other serious crimes, such as rape. Lack of political will, the reported complicity of officials in labor trafficking, as well as federal and local government structural changes, contributed to the failure of authorities to enforce federal law relating to forced labor. Resources, inspections, and remediation were inadequate.

The use of forced and bonded labor was widespread and common in several industries across the country. NGOs estimated that nearly two million persons were in bondage, primarily in Sindh and Punjab, but also in Balochistan and KP. A large proportion of bonded laborers were low-caste Hindus as well as Christians and Muslims with lower socioeconomic backgrounds. Bonded labor was reportedly present in the agricultural sector, including the cotton, sugarcane, and wheat industries, and in the brick, coal, and carpet industries. Bonded laborers often were unable to determine when their debts were paid in full, in part, because contracts were rare, and employers could take advantage of bonded laborers’ illiteracy to alter debt amounts or the price laborers paid for goods they acquired from their employers. In some cases landowners restricted laborers’ movements with armed guards or sold laborers to other employers for the price of the laborers’ debts.

Ties among landowners, industry owners, and influential politicians hampered effective elimination of the problem. For example, some local police did not pursue landowners or brick kiln owners effectively because they believed higher-ranking police, pressured by politicians or the owners themselves, would not support their efforts to carry out legal investigations. Some bonded laborers returned to their former status after authorities freed them, due to a lack of alternative employment options. In Sindh the landmark Bonded Labor Act of 2015 has no accompanying civil procedure to implement the law. Of the 27 district vigilance committees charged with overseeing bonded labor practices, only seven had held meetings as of July.

Boys and girls were bought, sold, rented, or kidnapped to work in illegal begging rings, as domestic servants, or as bonded laborers in agriculture and brickmaking (see section 7.c.). Illegal labor agents charged high fees to parents with false promises of decent work for their children and later exploited them by subjecting the children to forced labor in domestic servitude, unskilled labor, small shops, and other sectors.

The government of Punjab funded the Elimination of Child Labor and Bonded Labor Project, under which the Punjab Department of Labor worked to combat child and bonded labor in brick kilns. They did this by helping workers obtain national identity cards and interest free loans and providing schools at brick kiln sites. On March 29, the Lahore High Court ordered the labor secretary to enact measures to pay the school fees of children working in brick kilns. On July 1, the Punjab government issued a notification that set brick kiln laborers’ wages, as well as conditions of overtime work and paid holidays. The KP, Punjab, and Sindh ministries of labor reportedly worked to register brick kilns and their workers in order to regulate the industry more effectively and provide workers access to labor courts and other services.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/ and the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

The law does not prohibit all of the worst forms of child labor. The constitution expressly prohibits the employment of children younger than age 14 in any factory, mine, or other hazardous site. The national law for the employment of children sets the minimum age for hazardous work at 15, which does not comply with international standards. Provincial laws in KP, Punjab, and Sindh set the minimum age for hazardous work at 18 or 19, meeting international standards. In May the Punjab government announced the first phase of the Punjab Domestic Workers Act 2019, which prohibits hiring a child younger than 15 as a domestic worker. Despite these restrictions, there were nationwide reports of children working in areas the law defined as hazardous, such as leather manufacturing, brick making, and deep-sea fishing.

By law the minimum age for nonhazardous work is 15, but the law does not extend the minimum age limit to informal employment. The law limits the workday to seven hours for children, including a one-hour break after three hours of labor, and sets permissible times of day for work and time off. The law does not allow children to work overtime or at night, and it specifies they should receive one day off per week. Additionally, the law requires employers to keep a register of child workers for labor inspection purposes. These national prohibitions and regulations do not apply to home-based businesses or brickmaking.

Federal law prohibits the exploitation of children younger than 18 and defines exploitative entertainment as all activities related to human sports or sexual practices and other abusive practices. Parents who exploit their children are legally liable.

Child labor remained pervasive, with many children working in agriculture and domestic work. There were also reports that small workshops employed a large number of child laborers, which complicated efforts to enforce child labor laws. Poor rural families sometimes sold their children into domestic servitude or other types of work, or they paid agents to arrange for such work, often believing their children would work under decent conditions. Some children sent to work for relatives or acquaintances in exchange for education or other opportunities ended in exploitative conditions or forced labor. Children also were kidnapped or sold into organized begging rings, domestic servitude, militant groups and gangs, and child sex trafficking.

Coordination of responses to child labor problems at the national level remained ineffective. Labor inspection was the purview of provincial rather than national government, which contributed to uneven application of labor law. Enforcement efforts were not adequate to meet the scale of the problem. Inspectors had little training and insufficient resources and were susceptible to corruption. Authorities registered hundreds of child labor law violations, but they often did not impose penalties on violators; when they did, the penalties were not a significant deterrent. Authorities generally allowed NGOs to perform inspections without interference.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

While regulations prohibit discrimination in employment and occupation regarding race, sex, gender, disability, language, gender identity, HIV-positive status or other communicable diseases, or social status, the government did not effectively enforce those laws and regulations. Discrimination with respect to employment and occupation based on these factors persisted.

The 2010 passage of the 18th amendment to the constitution dissolved the federal Ministry of Labor and Manpower, resulting in the devolution of labor issues to the provinces. Some labor groups, international organizations, and NGOs remained critical of the devolution, contending that certain labor issues–including minimum wages, worker rights, national labor standards, and observance of international labor conventions–should remain within the purview of the federal government. Observers also raised concerns regarding the provinces’ varying capacity and commitment to adopt and enforce labor laws. Some international organizations, however, observed that giving authority to provincial authorities led to improvements in labor practices, including inspections, in some provinces.

The minimum wage as set by the government exceeds its definition of the poverty line income for an individual, which is 9,300 Pakistani Rupees ($60) per month. The minimum wage is 15,000 ($96) Rupees per month. The minimum wage was greater than the World Bank’s estimate for poverty level income. Authorities increased the minimum wage in the annual budget, and both federal and provincial governments issued notifications for such increases to go into effect. Minimum wage laws did not cover significant sectors of the labor force, including workers in the informal sector, domestic servants, and agricultural workers; and enforcement of minimum wage laws was uneven.

The law provides for a maximum workweek of 48 hours (54 hours for seasonal factories) with rest periods during the workday and paid annual holidays. The labor code also requires time off on official government holidays, overtime pay, annual and sick leave, health care, education for workers’ children, social security, old-age benefits, and a workers’ welfare fund. Many workers, however, were employed as contract laborers with no benefits beyond basic wages and no long-term job security, even if they remained with the same employer for many years. Furthermore, these national regulations do not apply to agricultural workers, workers in establishments with fewer than 10 employees, or domestic workers. Workers in these types of employment also lack the right to access labor courts to seek redress of grievances and were extremely vulnerable to exploitation. The industry-specific nature of many labor laws and the lack of government enforcement gave employers in many sectors relative impunity with regard to working conditions, treatment of employees, work hours, and pay.

Provincial governments have primary responsibility for enforcing national labor regulations. Enforcement was ineffective due to limited resources, corruption, and inadequate regulatory structures. The number of labor inspectors employed by the provincial governments is insufficient for the approximately 64-million-person workforce. Many workers, especially in the informal sector, remained unaware of their rights. Due to limited resources for labor inspections and corruption, inspections and penalties were insufficient to deter violations of labor laws.

In September the government of Punjab Province exempted factories in the province from labor law inspections. Punjab has approximately two thirds of the country’s textile factories.

In December the Sindh Assembly passed the Sindh Women Agriculture Workers Bill, which recognized rights of women who work in farming, livestock, and fisheries. The law provides for minimum wages, sick and maternity leave, set working hours, written work contracts, the right to unionize, and access to social security and credit, among other protections.

The provincial government of Sindh Province enacted a comprehensive occupational health and safety law in 2017, but it had not been implemented by year’s end. Similar legislation is absent in other provinces. In September the Punjab government enacted the Medical Teaching Institute (Reform) Ordinance, which amended several existing pieces of healthcare legislation and instituted boards of governors composed of private sector professionals for state run teaching hospitals.

Nationwide, health and safety standards were poor in multiple sectors. The country’s failure to meet international health and safety standards raised doubts abroad as to its reliability as a source for imports. There was a serious lack of adherence to mine safety and health protocols. Many mines had only one opening for entry, egress, and ventilation. Workers could not remove themselves from dangerous working conditions without risking loss of employment. Informal sector employees, such as domestic and home-based workers, were particularly vulnerable to health and safety issues. There were no statistics on workplace fatalities and accidents during the year. Factory managers were often unable to ascertain the identity of fire or other work-related accident victims because these individuals were contract workers and generally did not appear in records.

On March 9, six workers died when a construction lift buckled, causing the work crew to fall from the 13th floor of a 23-story building under construction in Karachi. According to reports, the lift and trolley did not comply with workplace standards. Labor rights activists observed that workers often have to work in dangerous conditions and the private sector construction companies failed to provide workers with health and safety facilities. On July 14, nine coal miners died in the collapse of a coalmine triggered by an electrical fire, with only one worker rescued two days after the incident. According to news reports, 164 miners died in Balochistan’s mines in 2018.

Palau

Section 7. Worker Rights

The law provides for the right of all persons to assemble peacefully and to associate with others for any lawful purpose, including to join and organize labor unions and to bargain collectively; no laws regulate trade union organization. The law neither provides for nor prohibits the right to strike, and the government has not addressed this issue. There is no law concerning antiunion discrimination. The government enforced the laws, and penalties were sufficient to deter violations.

There were no active labor unions or other employee organizations. The majority of businesses were small-scale, family-run enterprises employing relatives and friends.

The law prohibits all forms of forced or compulsory labor. Penalties for forced labor offenses include imprisonment and fines, which were sufficient to deter violations. The Office of the Attorney General, the Bureau of Public Safety, and the Bureau of Labor and Human Resources (all within the Ministry of Justice) are responsible for enforcing the law. The government did not effectively enforce the law.

There were reports employers forced some foreign workers, particularly domestic helpers, unskilled construction laborers, and workers in the tourism industry, to accept jobs different from those for which they had signed contracts and to accept less pay than stipulated in the contract. There were also reports of fraudulent recruitment onto fishing boats, with fishermen subsequently facing conditions indicative of forced labor. Employers sometimes verbally threatened, or withheld passports and return tickets from, foreign workers seeking to leave unfavorable work situations.

Abuses most commonly reported included misrepresentation of contract terms and conditions of employment, withholding of pay or benefits, and substandard food and housing. There were also complaints of physical abuse. In several cases local authorities took corrective action when alerted by social service and religious organizations.

See also the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The minimum age of employment for citizens is 16, and the minimum age for noncitizens is 21, excluding entertainers applying for temporary identification certificates. The law prohibits all of the worst forms of child labor. The law requires the government to protect children from exploitation. The Bureau of Labor and Human Resources is responsible for enforcing child labor laws and regulations. The government effectively enforced the law, and the penalties were adequate to deter violations.

There were no reports children worked in the formal economy, but some assisted their families with fishing, agriculture, and small-scale family enterprises.

d. Discrimination with Respect to Employment and Occupation

The constitution prohibits discrimination with respect to employment or occupation based on race, sex, marital status, place of origin, religion, disabilities, or political grounds. The law protects women from job discrimination and provides for equal pay for equal work. The Bureau of Aging and Gender, under the Ministry of Community and Cultural Affairs, promotes workplace gender equality. The law does not prohibit discrimination with respect to employment or occupation based on sexual orientation or gender identity, or HIV or other communicable disease status. There were no formal or documented reports of employment discrimination.

The government effectively enforced these laws. The Office of the Attorney General and the Bureau of Labor and Human Resources handle cases of workplace discrimination against foreign workers.

The minimum wage (which applies only to citizens) is above the poverty line. The minimum wage does not apply to the informal sector, including, for example, domestic service, some categories of agricultural labor, and NGO work. It also does not apply to foreign workers, employees who are students, or temporary or probationary work by students and persons younger than 21.

The Bureau of Labor and Human Resources has established some regulations about conditions of employment for foreign workers, who are entitled to one day off per week, consisting of 10 continuous hours without working between 6 a.m. and 6 p.m. The bureau may inspect the conditions of the workplace and employer-provided housing on the specific complaint of an employee, but enforcement was inconsistent, and working conditions varied. There were continuing reports of the mistreatment of foreign workers by their employers. The foreign workers most likely to be abused were those who worked under contracts as domestic helpers, farmers, waitresses, cashiers, beauticians, hostesses in karaoke bars and massage parlors, construction workers, and other semiskilled workers, the majority of whom were from the Philippines, China, Bangladesh, Japan, and the Republic of Korea.

Although the law states that employers shall adopt reasonable and adequate occupational safety and health rules, no law protects workers who file complaints about hazardous conditions. Foreign workers may self-censor complaints due to fear they could lose their job if they removed themselves from situations that endangered health or safety.

The Division of Labor had seven labor inspectors responsible for enforcing minimum wage laws, regulations regarding working conditions of foreign employees, and safety standards. The government did not effectively enforce the law. The number of inspectors was insufficient to enforce compliance. According to the law, employers are subject to a civil penalty for noncompliance with minimum wage requirements, in addition to the amount of taxes, social security contributions, and interest on unpaid wages. Penalties for violations of acceptable conditions of work rules include a range of monetary fines per violation and imprisonment, which were not sufficient to deter violations.

Investigations by an Immigration and Labor Monitoring Task Force resulted in the departure of some workers who had overstayed their visas, were working without permits, or were involved in unsolvable disagreements with their employer. The Division of Labor established an amnesty period for foreign workers lacking proper documentation to come forward and receive appropriate documentation. Approximately 50 workers took advantage of this option during the year.

Panama

Section 7. Worker Rights

The legal framework of labor laws is based upon the Labor Code of 1971, which provides for private-sector workers to form and join independent unions, bargain collectively, and conduct strikes. By law the majority of public-sector employees can strike but may not organize unions. Instead, those public-sector employees may organize professional associations that would bargain collectively on behalf of its members, although the public entity is not legally obligated to bargain with the association. Under the previous Varela administration, the Ministry of Labor registered more than 10 public-sector unions within a few ministries, such as the Ministry of Public Works, Ministry of Economy and Finance, Maritime Authority, among others. As a result the government is not obligated to engage in negotiations with the professional associations within these entities. The National Federation of Public Servants (FENASEP), an umbrella federation of 25 public-sector worker associations, traditionally fought for the establishment of rights similar to those of private-sector unions. The law prohibits antiunion discrimination and requires reinstatement of workers terminated for union activity but does not provide adequate means of protecting from rights violations.

Unions and associations are required to register with the Ministry of Labor. If the ministry does not respond to a private-sector union registration application within 15 calendar days, the union automatically gains legal recognition, provided the request is submitted directly with supported documentation established by law. In the public sector, professional associations gain legal recognition automatically if the General Directorate for Administrative Public Sector Careers does not respond to registration applications within 30 days. From January to September, the General Directorate approved seven public and 10 private union formation applications.

The Ministry of Labor Board of Appeals and Conciliation has the authority to resolve certain labor disagreements, such as internal union disputes, enforcement of the minimum wage, and some dismissal issues. The law allows arbitration by mutual consent, at the request of the employee or the ministry, in the case of a collective dispute in a privately held public utility company. It allows either party to appeal if arbitration is mandated during a collective dispute in a public-service company. The Ministry of Labor Board of Appeals and Conciliation has sole competency for disputes related to domestic employees, some dismissal issues, and claims of less than $1,500. The Minister of Labor initiated biennial minimum wage negotiations in August and was to act as a moderator between union and private-sector stakeholders.

Government-regulated union membership policies place some restrictions on freedom of association. The constitution mandates that only citizens may serve on a union’s executive board. In addition, the law requires a minimum of 40 persons to form a private-sector union (either by a company across trades or by trade across companies) and allows only one union per business establishment. The International Labor Organization criticized the 40-person minimum as too large for workers wanting to form a union within a company. Many domestic labor unions, as well as the public and private sectors, reiterated their support for keeping the figure at 40 individuals.

In the public sector, professional associations represent the majority of workers. The law stipulates only one association may exist per public-sector institution and permits no more than one chapter per province. At least 50 public servants are required to form a professional association. No law protects the jobs of public-sector workers in the event of a strike. FENASEP contended there was no political will to allow all public servants within ministries to form unions, because this could eliminate positions for political appointees.

The law prohibits federations and confederations from calling strikes, as well as strikes against the government’s economic and social policy. Individual professional associations under FENASEP may negotiate on behalf of their members, but the Ministry of Labor can order compulsory arbitration. FENASEP leaders noted that collective bargaining claims were heard and recognized by employers but did not result in tangible results or changes, particularly in cases of dismissals without cause.

According to the labor code, the majority of private-sector employees must support a strike, and strikes are permitted only if they are related to the improvement of working conditions, a collective bargaining agreement, for repeated violations of legal rights, or in support of another strike of workers on the same project (solidarity strike). In the event of a strike, at least 20 to 30 percent of the workforce must continue to provide minimum services, particularly public services as defined by law, such as transportation, sanitation, mail delivery, hospital care, telecommunications, and public availability of essential food.

Strikes in essential transportation services are limited to those involving public passenger services. The law prohibits strikes for Panama Canal Authority (ACP) employees but allows professional associations to organize and bargain collectively on issues such as schedules and safety, and it provides arbitration to resolve disputes. (The ACP is an autonomous entity, with independence from the central government).

The Ministry of the Presidency Conciliation Board hears and resolves public-sector worker complaints. The board refers complaints it cannot resolve to an arbitration panel, which consists of representatives from the employer, the professional association, and a third member chosen by the first two. If the dispute cannot be resolved, it is referred to a tribunal under the board. Observers, however, noted that the Ministry of the Presidency had not designated the tribunal judges. The alternative to the board is the civil court system.

Cases presented in the courts tend to favor employers. FENASEP noted that one public-sector institution had appealed more than 100 complaints to the Supreme Court, only two of which resulted in rulings in favor of the public-sector employee. While Supreme Court decisions are final, labor organizations may appeal their case results in international human rights courts.

One labor strike and labor protest occurred during the year. Workers at the Balboa port conducted a July 17-28 strike against Panama Ports’ decision to appeal collective agreement negotiations in the Supreme Court. (Note: Panama Ports was previously owned by the state but was privatized, and a Hong Kong-based company won the concession. End note). According to reports, these appeals subsequently delayed salary increases and working condition improvements. The strike ended on July 29, after the Ministry of Labor mediated an agreement between port workers and employers that promoted worker safety regulations and business economic welfare.

The Allied Association of Transport Port Ex-Employees’ (ASOTRAP) hosted an August labor walk to the Panamanian Presidency to pressure both the Inter-American Commission of Human Rights and the Cortizo Administration to address claims that terminated Balboa and Cristobal port workers did not receive severance pay guaranteed by law when those ports were privatized. ASOTRAP asserted that because the termination occurred after August 15, former workers were entitled to the Panamanian 13th Month Bonus, a program in which workers receive one month’s wages annually (one-third paid April 15, one-third paid August 15, and the last third on December 15). ASOTRAP also contended that the Inter-American Commission of Human Rights had not made a ruling on the case. Although the commission sent ASOTRAP a letter acknowledging receipt of the case in 2015, ASOTRAP contended that the commission had not made a final case ruling.

The law prohibits all forms of forced labor of adults or children, as well as modern-day slavery and human trafficking. The law establishes penalties sufficiently stringent to deter violations. The government effectively enforced the law. There continued to be reports of Central and South American and Chinese men exploited in forced labor in construction, agriculture, mining, restaurants, door-to-door peddling, and other sectors; traffickers reported using debt bondage, false promises, lack of knowledge of the refugee process and irregular status, restrictions on movement, and other means. There also were reports of forced child labor (see section 7.c.).

Also, see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The law prohibits all of the worst forms of child labor. The law prohibits the employment of children younger than 14, although children who have not completed primary school may not begin work until 15. The family code permits children ages 12 to 14 to perform domestic and agricultural work with regard to schedule, salary, contract, and type. The law allows children ages 12 to 15 to perform light work in agriculture if the work is outside regular school hours. The law also allows a child older than 12 to perform light domestic work and stipulates employers must ensure the child attends school through primary school. The law neither defines the type of light work children may perform nor limits the total number of light domestic work hours these children may perform. The law prohibits children younger than 18 from engaging in hazardous work but allows children as young as 14 to perform hazardous tasks in a training facility, in violation of international standards.

Minors younger than 16 may work no more than six hours per day or 36 hours per week, while those ages 16 and 17 may work no more than seven hours per day or 42 hours per week. Children younger than 18 may not work between 6 p.m. and 8 a.m. The government effectively enforced the law, and penalties were sufficient to deter violations.

The National Commission for the Prevention of Sexual Exploitation of Children and Adolescents conducted 59 awareness meetings in vulnerable communities, with the participation of the Ministry of Education and the Ministry of Social Development. Its actions focused on regions sensitive to sexual exploitation of minors in tourism locations, including Panama City, Bocas del Toro, Cocle, and Chiriqui. Criminal enforcement agencies investigated 398 reports of commercial sexual exploitation of children during 2018, compared with 920 in the previous year. The country is a source, transit point, and destination for men and women exploited in forced labor. Children were exploited in forced labor, particularly domestic servitude, and sex trafficking. The law includes punishment of up to 12 years’ imprisonment for anyone who recruits children younger than 18 or uses them to participate actively in armed hostilities.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings  and the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination regarding race, gender, religion, political opinion, citizenship, disability, social status, and HIV status. The law does not prohibit discrimination based on sexual orientation or gender identity. Although the country is a member of the International Equal Pay Coalition, which promotes pay equality between women and men, a gender wage gap continued to exist.

Despite legal protections, discrimination in employment and occupation occurred with respect to race, sex, gender, disability, sexual orientation or gender identity, and HIV-positive status. During the job interview process, applicants, both citizens and migrants, must complete medical examinations, including HIV/AIDS testing. The law requires all laboratories to inform applicants an HIV test will be administered, but private-sector laboratories often did not comply. It was common practice for private-sector human resources offices to terminate applications of HIV-positive citizens without informing the applicant. While private laboratories often informed law enforcement of HIV-positive migrants, the National Immigration Office did not engage in deportation procedures specifically based on a migrant’s HIV status. NGOs noted that during job interviews, women were often asked if they were married, pregnant, or planned to have children in the future. It was common practice for human resources offices to terminate the applications of women who indicated a possibility of pregnancy in the near future (see section 6).

The law provides for a national minimum wage only for private sector workers. The wage was above the poverty line. Public servants received lower minimum wages than their private-sector counterparts. Most workers formally employed in urban areas earned the minimum wage or more. As of August 2018, approximately 43 percent of the working population worked in the informal sector, and some earned well below the minimum wage. The agricultural sector, as well as the maritime and aviation sectors, received the lowest and highest minimum wages, respectively. The Ministry of Labor was less likely to enforce labor laws in most rural areas (see section 6, Indigenous People).

The law establishes a standard workweek of 48 hours, provides for at least one 24-hour rest period weekly, limits the number of hours worked per week, provides for premium pay for overtime, and prohibits compulsory overtime. There is no annual limit on the total number of overtime hours allowed. If employees work more than three hours of overtime in one day or more than nine overtime hours in a week, excess overtime hours must be paid at an additional 75 percent above the normal wage. Workers have the right to 30 days’ paid vacation for every 11 months of continuous work, including those who do not work full time.

The Ministry of Labor is responsible for setting health and safety standards. Standards were generally current and appropriate for some of the industries in the country. The law requires employers to provide a safe workplace environment, including the provision of protective clothing and equipment for workers.

The Ministry of Labor generally enforced these standards in the formal sector. The inspection office consists of two groups: The Panama City-based headquarters group and the regional group. The number of inspectors and safety officers was insufficient to enforce labor laws adequately. As of July the Ministry of Labor had conducted 9,397 safety inspections nationwide. Fines were low and generally insufficient to deter violations. During the year, however, the government levied fines according to the number of workers affected, resulting in larger overall fines.

Reports of violations relating to hours of work were frequent, especially in the maritime sector, where unions reported shifts of 14 to 24 hours. There were allegations indicating that neither the Panamanian Maritime Authority nor the Ministry of Labor conducted inspections of working conditions in the maritime sector. The ACP unions and workers experienced difficulties accessing the justice system to adjudicate complaints due to delays and other deficiencies of the Labor Relations Board, which is the court of first instance on labor matters for the autonomous ACP. Reports also indicated violations relating to hours of work for coffee harvest workers, who often lacked formal contracts and were vulnerable to coercion from employers.

Employers often hired employees under short-term contracts to avoid paying benefits that accrue to long-term employees. Employers in the maritime sector also commonly hired workers continuously on short-term contracts but did not convert them to permanent employees as required by law. The law states that employers have the right to dismiss any employee without justifiable cause before the two-year tenure term. As a result, employers frequently hired workers for one year and 11 months and subsequently dismissed them to circumvent laws that make firing employees more difficult after two years of employment. This practice is illegal if the same employee is rehired as a temporary worker after being dismissed, although employees rarely reported the practice.

Inspectors from the Ministry of Labor and the occupational health section of the Social Security Administration reported conducting periodic inspections of hazardous employment sites. The law requires the resident engineer and a ministry safety officer to remain on construction sites, establish fines for noncompliance, and identify a tripartite group composed of the Chamber of Construction, the construction union SUNTRACS, and the ministry to regulate adherence.

Some construction workers and their employers were occasionally lax about basic safety measures, frequently due to their perception that it reduced productivity. Equipment was often outdated, broken, or lacking safety devices, due in large part to a fear that the replacement cost would be prohibitive. In August a construction worker died in the city of David after falling 39 feet off a beam while working on a shopping center construction project. After his death, the Union of Construction Workers announced a temporary work stoppage on the project.

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