Title 22 › Chapter CHAPTER 51— - PANAMA CANAL › Subchapter SUBCHAPTER I— - ADMINISTRATION AND REGULATIONS › Part Part 2— - Employees › Subpart subpart iii— - conditions of employment and placement › § 3671
People who worked for the Panama Canal Company or the Canal Zone Government and were moved to jobs in the Panama Canal Commission, or to U.S. agency or Smithsonian jobs whose permanent duty station is in the Republic of Panama (including the old Canal Zone), or who lost their job in a reduction on September 30, 1979 and were hired by the Commission before April 1, 1980, must be given certain employment protections and benefits. These include things like premium and night pay, rights to be reinstated or restored, injury and death compensation, protection in reductions-in-force, a grievance and appeal system, veterans’ preference, holidays, saved pay rules, and severance pay. If someone in the second group would have met the service rule for early retirement under 5 U.S.C. 8336(i) or 8339(d)(2) but lost that by a break in service of more than 3 days right after September 30, 1979, they are treated as if they met it. Any break from September 30, 1979 until the later appointment counts as creditable service under 5 U.S.C. 8332, but that time does not count toward average pay (5 U.S.C. 8331(4)) and no deductions or deposits are required for it (5 U.S.C. 8334). For teachers who moved into the Department of Defense Overseas Dependent School System in Panama, 20 U.S.C. 903(c) and 904(a)(2) do not apply until pay under 903(c) equals or exceeds the pay they had when transferred. Agencies may allow a sabbatical of up to 11 months for such teachers for study or unpaid U.S. work, with basic pay continued and possible travel expenses, without loss of leave or service credit; the sabbatical can be used only once in 10 years, only after 7 years of service, and not if the teacher can take immediate voluntary retirement. A teacher who takes a sabbatical must agree to serve two more consecutive years afterward or repay the sabbatical costs, which becomes a debt to the United States.
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Foreign Relations and Intercourse — Source: USLM XML via OLRC
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22 U.S.C. § 3671
Title 22 — Foreign Relations and Intercourse
Last Updated
Apr 6, 2026
Release point: 119-73