PANAMA CITY ROOTS. TWO OCEANS.   A guide by Fernando Yemail & Feeling Yachty
Yachty Guide Panama by Feeling Yachty
Yachty Guide · Panama templates

Captain engagement agreement outline (Panama)

Clause outline for engaging a charter captain in Panama: AMP licence grade, work permit, hours, pay, CSS, décimo, authority and incidents. Lawyer review.

An outline of the points to settle in writing before a captain runs your boat for paying guests in Panama. It is not a contract: take it to a Panamanian labour lawyer, who will decide the form and draft the wording in Spanish. Have the captain's AMP licence, your boats' certificates and your pay offer ready.

Fill in the fields below, then print the worksheet or download your entries as a text file. Entries stay on this page until you leave unless you download them. Don’t enter passport, card or medical details; keep copies of those separately.

Your working copy

What this outline is

A list of clauses to discuss with a Panamanian labour lawyer. The first decision is the form. If the captain works under your direction, on your schedule, for your company, the Código de Trabajo is likely to apply whatever the paper is called. Your lawyer will tell you whether a services contract is defensible for your set-up.

The rules behind the lines

  • Licence (line 2). The AMP's Dirección General de Gente de Mar issues the grades: operador de lanchas 2da clase for boats under 12 m, 1ra clase for passenger or cargo boats of 12 to 20 m, patrón de nave de placer by length, patrón de cabotaje and capitán de yate by tonnage. A USCG, RYA or MCA licence does not license anyone to work in Panamanian waters. See how to verify a captain's licence.
  • Contract (line 18). Article 67 of the Código de Trabajo requires a written contract signed in three copies, one for each party and one for MITRADEL. Article 68 lists what it must contain: parties, job, place, duration, hours, wage and how it is paid.
  • Hours and pay (lines 8–11). Articles 31, 33 and 36 set the 8-hour day, the 25% day and 50% night overtime surcharges and the overtime cap. Article 54 gives 30 days' vacation per 11 months. Article 78 caps probation at three months.
  • Foreign captains (line 4). Ordinary foreign staff are capped at 10% of your workforce and specialists at 15%, each with a MITRADEL permit. A small operator often cannot put a foreign captain on its own payroll. See foreign crew work permits.

Tips

  • Re-check every season. Licences and medicals expire, and a captain moving to a bigger boat may need a higher grade.
  • Foreign-flag charter yachts. Under J.D. 089-2020, captain and crew on a foreign-flag charter yacht need valid certificates from an STCW state party. Ask the AMP whether a national-waters licence is also needed.
  • Write the authority clause plainly. Guests, owners and brokers should all know that the captain's safety call is final.

Read the companion guide

Before using this resource, read Captain and crew requirements for paid trips in Panama.

Fernando Yemail is the owner of Feeling Yachty and is not a lawyer. Yachty Guide provides general educational information and practical recommendations, not legal, tax, insurance or individualized professional advice. Panamanian rules depend on the vessel, flag, activity and location and can change. Confirm current requirements with the relevant authority (AMP, ACP, SENAN, ATP, ARAP, MiAmbiente, Migración or Aduanas) and consult a qualified professional in Panama about your situation. Full disclaimer.

Use it alongside these guides