Title 22Foreign Relations and IntercourseRelease 119-73

§3671 Transferred or reemployed employees

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

Last updated Apr 6, 2026|Official source

Summary

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.

Full Legal Text

Title 22, §3671

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)(1)With respect to any individual employed in the Panama Canal Company or the Canal Zone Government—
(A)who is transferred—
(i)to a position in the Commission; or
(ii)to a position in an Executive agency or in the Smithsonian Institution the permanent duty station of which is in the Republic of Panama (including the area known before October 1, 1979, as the Canal Zone); or
(B)who is separated by reason of a reduction in force on September 30, 1979, and is appointed to a position in the Commission before April 1, 1980;
(2)The terms and conditions of employment referred to in paragraph (1) of this subsection are the following:
(A), (B) Repealed. Pub. L. 105–261, div. C, title XXXV, § 3507(a), Oct. 17, 1998, 112 Stat. 2269.
(C)premium pay and night differential;
(D)reinstatement and restoration rights;
(E)injury and death compensation benefits;
(F)to (H) Repealed. Pub. L. 105–261, div. C, title XXXV, § 3507(a), Oct. 17, 1998, 112 Stat. 2269.
(I)reduction-in-force rights;
(J)an employee grievance system, and the right to appeal adverse and disciplinary actions and position classification actions;
(K)veterans’ preference eligibility;
(L)holidays;
(M)saved pay provisions; and
(N)severance pay benefits.
(b)Any individual described in subsection (a)(1)(B) of this section who would have met the service requirement for early retirement benefits under section 8336(i) or 8339(d)(2) of title 5 (as amended by section 1241(a) and 1242 of this Act, respectively), but for a break in service of more than 3 days immediately after September 30, 1979, shall be considered to meet that requirement. Any break in service by any such individual for purposes of section 8332 of such title 5 during the period beginning September 30, 1979, and ending on the date of the appointment referred to in such subsection (a)(1)(B) shall be considered a period of creditable service under such section 8332 for such individual, except that such period shall not be taken into account for purposes of determining average pay (as defined in section 8331(4) of such title 5) and no deduction, contribution, or deposit shall be required for that period under section 8334 of such title 5.
(c)(1)section 903(c) of title 20 shall not apply with respect to any teacher who was employed by the Canal Zone Government school system on September 30, 1979, and who was transferred from such position to a teaching position which is under the Department of Defense Overseas Dependent School System and the permanent duty station of which is in the Republic of Panama, until the rates of basic compensation established under section 903(c) of title 20 equal or exceed the rates of basic compensation then in effect for teachers who were so transferred.
(2)section 904(a)(2) of title 20 shall not apply with respect to any teacher who was employed by the Canal Zone Government school system on September 30, 1979, and who was transferred from such position to a teaching position which is under the Department of Defense Overseas Dependent School System and the permanent duty station of which is in the Republic of Panama.
(3)(A)The head of a department or agency of the United States may grant a sabbatical to any teacher to whom paragraph (1) of this subsection applies for not to exceed 11 months in order to permit the teacher to engage in study or uncompensated work experience which is in the United States and which will contribute to the teacher’s development and effectiveness. Basic compensation shall be paid to teachers on sabbatical under this section in the same manner and to the same extent as basic compensation would have been paid to teachers on sabbatical while employed in the Canal Zone Government school system on September 30, 1979. A sabbatical shall not result in a loss of, or reduction in, leave to which the teacher is otherwise entitled, credit for time or service, or performance or efficiency rating. The head of the department or agency may authorize in accordance with chapter 57 of title 5 such travel expenses (including per diem allowance) as the head of the department or agency may determine to be essential for the study or experience.
(B)A sabbatical under this paragraph may not be granted to any teacher—
(i)more than once in any 10-year period;
(ii)unless the teacher has completed 7 years of service as a teacher; and
(iii)if the teacher is eligible for voluntary retirement with a right to an immediate annuity.
(C)(i)Any teacher in a department or agency of the United States may be granted a sabbatical under this paragraph only if the teacher agrees, as a condition of accepting the sabbatical, to serve in the civil service upon the completion of the sabbatical for a period of two consecutive years.
(ii)Each agreement required under clause (i) of this subparagraph shall provide that in the event the teacher fails to carry out the agreement (except for good and sufficient reason as determined by the head of the department or agency that granted the sabbatical) the teacher shall be liable to the United States for payment of all expenses (including salary) of the sabbatical. The amount shall be treated as a debt due the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (b), is Pub. L. 96–70, Sept. 27, 1979, 93 Stat. 452, known as the Panama Canal Act of 1979, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 3601 of this title and Tables. Codification section 1231(d) of Pub. L. 96–70 amended section 5595, 5724a, and 8102 of Title 5, Government Organization and Employees.

Amendments

1998—Subsec. (a)(2)(A), (B). Pub. L. 105–261 struck out subpars. (A) and (B) which read as follows: “(A) rates of basic pay; “(B) tropical differential;”. Subsec. (a)(2)(F) to (H). Pub. L. 105–261 struck out subpars. (F) to (H) which read as follows: “(F) leave and travel; “(G) transportation and repatriation benefits; “(H) group health and life insurance;”. 1997—Subsec. (c)(3)(A). Pub. L. 105–85 substituted “
September 30, 1979” for “the day before
October 1, 1979”. 1996—Subsec. (a)(3). Pub. L. 104–201 struck out par. (3) which read as follows: “(3)(A) The provisions of this subsection shall take effect on
September 27, 1979. “(B) No spending authority (as described in section 651(c)(2)(C) of title 2) provided for under this subsection shall take effect before
October 1, 1979. “(C) Effective
October 1, 1979, any individual who, but for subparagraph (B) of this paragraph, would have been entitled to one or more payments pursuant to this subsection for periods before
October 1, 1979, shall be entitled, to the extent or in such amounts as are provided in advance in appropriation Acts, to a lump sum payment equal to the total amount of all such payments.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 Amendment Pub. L. 105–261, div. C, title XXXV, § 3507(a), Oct. 17, 1998, 112 Stat. 2269, provided that the amendment made by section 3507(a) striking out subsec. (a)(2)(A), (B), and (F) to (H) of this section is effective 11:59 p.m. (Eastern Standard Time), Dec. 30, 1999, and any right or condition of employment provided for in, or arising from, subsec. (a)(2)(A), (B), and (F) to (H) of this section is terminated.

Reference

Citations & Metadata

Citation

22 U.S.C. § 3671

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73