Observation (CEACR) - adopted 2000, published 89th ILC session (2001)

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

The Committee notes the information supplied by the Government in its last report as well as the full statistical data contained in the Social Insurance Fund statistics bulletin for 1996.

Article 5 of the Convention (in conjunction with Article 2, paragraph 1).  In reply to the Committee’s previous comments on the need to amend the provisions of 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, the Government indicates that social security legislation concerning compensation for occupational injuries provides, in the contingency cited, a payment in compliance with this provision of the Convention. While noting this information, the Committee recalls that, pursuant to section 305 of the Labour Code, compensation for occupational injury for workers who are not covered by the compulsory social security scheme shall be governed by the provisions of the Labour Code (articles 304 to 325). In order to appreciate fully the manner in which effect is given to this provision of the Convention by the occupational injury compensation scheme of the Social Security Fund, the Committee would be grateful if the Government would provide statistical information on the number of employees actually covered by this scheme as compared with the total number of employees. In this regard, it recalls that pursuant to Article 2, paragraph 1, of the Convention, all workmen, employees and apprentices employed by any enterprise, undertaking or establishment of whatsoever nature, whether public or private, shall be covered. The Committee also expresses the hope that when the Labour Code is next revised, in order to avoid any ambiguity the Government will have no difficulty in aligning sections 306 and 311 of the Code on the relevant provisions of the social security legislation concerning compensation for occupational injury.

Article 7.  In its previous comments, the Committee emphasized that neither the Labour Code nor social security legislation concerning compensation for occupational injury (Decree No. 68 of 31 March 1970) contains a provision for granting supplementary compensation to the victims of industrial accidents whose condition requires the constant help of another person. The Government indicates in this regard in its report that the Social Security Fund grants victims suffering from permanent total incapacity a monthly pension corresponding to 60 per cent of their previous salary. The Government adds that the level of this pension is higher than that paid in the event of permanent total incapacity under the Labour Code (40 per cent) and that it can therefore be deemed that this rate of 60 per cent includes a supplementary compensation which is granted automatically without being restricted to the periods during which the victim requires the assistance of another person. The Committee notes this information; however, it does not consider in the present case that there are grounds for comparing the rate of compensation paid to a victim suffering from permanent total incapacity by virtue of social security legislation with that paid by virtue of the Labour Code. In fact, the purpose of Article 7 of the Convention is to provide certain of these victims with supplementary compensation when their condition requires the constant help of another person in order to provide them with the means of bearing the financial burden entailed in such help. But, in the specific case of these victims, social security legislation does not provide any supplementary compensation. The Committee therefore 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. In this regard, it recalls that in its report provided in 1975 the Government mentioned a Bill intended to supplement legislation with a provision providing the supplementary compensation in question.