Practice Area: Labour & Employment
Industry: Private Security Services
Jurisdiction: Panama
LOVILL acted as sole legal counsel to one of Panama’s largest private security companies, with a workforce of approximately 1,300 employees, operating as part of a regional corporate group. The company provided security services to major clients across aviation, retail, banking, and public infrastructure sectors.
Given the nature of its operations, the company functioned within a highly regulated environment, with a significant portion of its workforce unionized and subject to collective bargaining agreements. Labour relations, regulatory compliance, and contractual obligations with public entities were central to its day-to-day operations.
Legal Challenge
LOVILL was engaged to advise the client on corporate and labour matters, with particular emphasis on labour conditions and negotiations with the employees’ union. This mandate evolved into acting as lead counsel in the full closing of the company’s operations in Panama, a process that extended over three years due to:
- The impact of the COVID-19 pandemic
- The regulatory sensitivity of the private security sector
- Complex negotiations with unionized employees
- The termination of a public services contract with a state-owned transport entity
A critical phase of the process involved the termination of unionized employees linked to a major public services contract, requiring careful coordination, legal precision, and risk management to avoid post-termination claims.
Legal Strategy and Execution
LOVILL led negotiations with the labour union over a period of more than three months, addressing severance terms, compliance with labour regulations, and the orderly termination of employment relationships.
In 2022, following the conclusion of negotiations, LOVILL successfully executed the termination of 65 individual labour contracts in less than 24 hours, completing the liquidation of the company’s workforce and enabling the formal dissolution of the labour union.
The execution required:
- Advanced planning and sequencing
- Close coordination with client teams across multiple jurisdictions
- Real-time legal updates to activate parallel operational and corporate steps
- Strict compliance with labour and regulatory requirements
Outcome
- All labour contracts were terminated without subsequent claims or litigation
- The company successfully completed the closure of operations in Panama
- The labour union was formally dissolved
- The client achieved legal certainty in a complex and sensitive restructuring
This matter highlights LOVILL’s experience in labour restructurings, union negotiations, and high-risk terminations within regulated industries, combining strategic negotiation, regulatory insight, and precise execution under tight timeframes.
Lead partners Jeannette Bravo
