Panama's Supreme Court allows deputies, high officials to claim seniority bonuses

Panama's Supreme Court of Justice has opened the door for deputies, ministers, and other high-ranking public officials to claim seniority bonuses, declaring most of Article 1 of Law 241 of 2021 unconstitutional. The court's decision, dated July 21, 2026, resolves a lawsuit filed by lawyer Enereida Barrías against specific sections of the law.

The ruling effectively removes major obstacles that previously prevented officials appointed to positions of trust from receiving this benefit. While the court initially reviewed specific articles, its analysis led to the declaration of unconstitutionality for several more sections, with only the provision related to contracted personnel through public procurement remaining in effect.

In its decision, the Court concluded that the seniority bonus is an acquired labor right linked to the duration of service to the State. It found no objective justification for excluding certain officials solely based on their position. The magistrates determined that these exclusions violated articles of the Constitution related to equality, fundamental rights, and the right to work, creating unequal treatment among public servants.

The Supreme Court's ruling signifies a substantial shift in the interpretation of this labor benefit. It asserts that the right to a seniority bonus cannot be conditional on an individual's position within the state structure. This decision means that deputies and other high-ranking officials previously excluded by Law 241 can now seek recognition for their seniority bonuses, as the court affirmed that time served for the State holds equal value regardless of the role performed.