A country in Central America, Honduras is bordered by Guatemala and El Salvador. Colonized by Spain in the 16th century, Roman Catholicism and indigenous customs blended over the years to create their current culture. Ethnic groups are primarily Mestizo, along with a smattering of Amerindian, blacks and whites. It is also one of the poorest nations in Central America, relying primarily on agriculture for its economy. Honduras is unfortunately also beset by corruption, a military regime, crime, and poverty, making it one most politically unsteady nations in Central America. Honduran culture includes renowned painters such as Velásquez and a popular cuisine that is a mix of several different influences from Europe and Africa.
Under the Honduran Labor Code, a permanent employment relationship is defined by its indefinite duration and by the existence of the essential elements of employment: personal provision of services, subordination or dependency, and payment of remuneration. Employment is presumed to be indefinite unless the employer can clearly demonstrate that the relationship was lawfully established for a fixed term or for a specific project or service.
In Honduras, written employment contracts are mandatory, except for domestic work, seasonal jobs not lasting more than 60 days, or whose value does not exceed HNL 200. A written contract must include the following information about both parties involved and the conditions of employment:
Employee name, nationality, age, sex, marital status, dependents, profession, and address
Employer name and any other relevant particulars
Work description
Type of contract and start date
Where the work will take place, working hours, and the wages and benefits provided by the employer
Place and date of the contract and signatures of the contracting parties
The Labor Code of Honduras addresses temporary employment through fixed-term contracts and contracts for a specific work or service, which apply to work performed under a contract with an agreed end date or for a specific project whose nature is not permanent. These arrangements are treated as exceptions to indefinite employment, which is presumed when the work is continuous or permanent. The Labor Code does not contain statutory regulations governing temporary employment agencies. The law does not contain statutory regulations covering temporary employment agencies.
In Honduras, the probationary or trial period may be used for both parties to assess the appropriateness of an employment relationship. The duration of the probationary period must not exceed 60 days. The exact period must be stipulated in writing and included in the employment contract.
When the trial period is agreed to be shorter than the maximum limit of 60 days, the parties can extend it before the originally stipulated period expires without the total time of probation exceeding 60 days.
Employees on probation enjoy all the same rights as permanent employees, except for notice period and severance rights. During the probationary period, either party can terminate the contract immediately.
The ordinary daytime working day may not exceed 8 hours per day and 44 hours per week, which is equivalent to 48 hours of pay. The ordinary nighttime working day may not exceed 6 hours per day and 36 hours per week. Employees working greater than these standard hours must be paid overtime.
The Labor Code defines daytime work as any work performed between 5:00 AM and 7:00 PM and night work as work performed between 7:00 PM and 5:00 AM. In the case of mixed workdays that include both daytime and night work, the night work hours may not exceed 3; otherwise, it will be considered a night shift. A mixed day can be a maximum of 7 hours, and a mixed week cannot exceed 42 working hours.
In Honduras, employees are entitled to paid annual leave after having worked for 12 continuous months for the same employer and can take advantage of it if they have worked for at least 200 days in the preceding year. The length of the leave depends on the length of service, as follows:
10 working days for 1 year of continuous service
12 working days for 2 years of continuous service
15 working days for 3 years of continuous service
20 working days for at least 4 years of service
Splitting or accumulation of annual leave is not generally permitted. However, in exceptional cases, where the nature of the work does not allow for extended absences, annual leave may be accumulated for 2 years.
In Honduras, workers are entitled to protection in cases of temporary disability or sickness, whether resulting from an occupational accident or disease or from a non-occupational illness.
In the case of an occupational accident or occupational disease, wage replacement and medical benefits are provided through the Labor Risks Insurance administered by the Honduran Social Security Institute (IHSS). During the period of temporary disability, the employee receives a temporary disability subsidy from IHSS, equivalent to 66% of the insured wage. The employer is not required to pay regular wages during this period, but must preserve the employment relationship.
In the case of a non-occupational illness, the employee is entitled to a temporary suspension of the employment contract. The employer is responsible for paying the first 3 days of sick leave. From the fourth day onward, if the worker is insured and meets the contribution requirements, the IHSS pays a sickness subsidy.
If the employee is not covered by social security or the illness is not protected by the Social Security Law, the employer’s obligation is limited to granting medical leave and paying partial wages based on the worker’s length of continuous service.
The Labor Code of Honduras provides for fully paid maternity leave for 10 weeks (70 days) upon proof of pregnancy in the form of a medical certificate that indicates pregnancy, the expected delivery date, and the commencement date of maternity leave. The 10 weeks of maternity leave are split into 2 parts: 4 weeks before the expected delivery date and 6 weeks after.
Employees receive their normal wages while out on maternity leave. The Honduran Institute of Social Security covers 66% of wages for insured employees, while the employer is responsible for paying the remaining 34% of salary. If the employee is not enrolled with the Social Security Institute or has not made at least 10 contributions immediately before the start of maternity leave, the employer is liable to pay the employee's full salary.
There are no provisions in the Labor Code of Honduras regarding paid or unpaid paternity leave.
The Honduran Labor Code requires employers to give a written dismissal notice indicating the cause for termination of an employment contract. If the contract is oral, notice can be given verbally before 2 witnesses. The length of the notice period differs depending on the employee’s length of service as follows:
24 hours notice for service of fewer than 3 months
1 week of notice for service between 3 and 6 months
2 weeks of notice for service between 6 and 12 months
1 month of notice for service between 1 and 2 years
2 months of notice for service of more than 2 years
Said notices can be omitted by any parties paying the other the corresponding amount.
In Honduras, the Labor Code states that severance payment shall be provided when an employment contract of an indefinite period is terminated in each of the following situations:
Unfair dismissal
For just cause due to gross misconduct
Any reason beyond the employee's control
The severance payment in these situations varies, depending on the worker's length of employment:
10 days' wage for employees with 3 to 6 months of service
20 days' wage for employees with 6 months to 1 year of service
30 days' (1 month) wage for each year of work for employees with more than 1 year of service, not to exceed 8 months of wages
