Honduras

Capital: Tegucigalpa

Currency: Honduran Lempira- HNL

HNL

Honduras Employment Law and Hiring Policy Overview

Key legislation:
- Labor Code (Código de Trabajo)
- Social Security Act (Ley del Seguro Social)
- Occupational Risk Act (Ley de Riesgos Profesionales)
Legal characteristics:
- Aims to protect workers' rights and promote social justice.
- Sets standards for minimum wage, working hours, vacations, and social security benefits.

Contract types:
- Indefinite contracts
- Fixed-term contracts (not exceeding one year, except for technical training purposes, which can extend up to 60 months)
Contract terms:
- Must include job description, compensation, working hours, notice periods, annual leave, and other workplace policies
Language and currency:
- Contracts must be written in Spanish and use the Honduran lempira (HNL) currency

Standard working hours: 44 hours per week, 8 hours per day, over 6 days
Rest days and breaks:
- One day of rest per week
- 30-minute break after 6 hours of daily work

Annual leave:
- 10 days after one year of employment
- 12 days after two years of employment
- 15 days after three years of employment
- 20 days after four or more years of employment
Public holidays: 12 days
Special leave:
- Sick leave: 26 weeks of paid sick leave, extendable to 52 weeks
- Maternity leave: 4 weeks before and 6 weeks after childbirth, paid at 100% of the standard wage
- Paternity leave: Not legally mandated
- Parental leave: Not legally mandated

Notice periods:
- Less than 3 months of service: 24 hours
- 3 to 6 months of service: 1 week
- 6 months to 1 year of service: 2 weeks
- 1 to 2 years of service: 1 month
- More than 2 years of service: 2 months
Severance pay:
- Employees dismissed without just cause are entitled to severance pay, equivalent to one month's salary per year of service
Unfair dismissal protection:
- Employees have the right to take their employer to court in case of illegal dismissal

Personal income tax:
- Salary Range (HNL) Tax Rate
  0 - 172,117.89 0%
  172,117.89 - 262,449.27 15%
  262,449.27 - 610,347.16 20%
  610,347.16 and above 25%
Social security contributions:
- Employee: 5%
- Employer: 16.60%

Insurance policy:
- Honduran residents are entitled to basic health insurance, with free primary healthcare services
- Some companies offer supplemental private health insurance

Minimum wage:
- Agriculture: 7,802.20 HNL/month
- Commerce: 15,495.25 HNL/month
Compensation structure:
- Base salary
- Bonuses
- Allowances
- 13th salary (paid in December)
- 14th salary (paid in July)

Enforceability:
- Confidentiality and non-compete clauses are enforceable in Honduras
Common clauses:
- Restrict employees from using or disclosing confidential information of the employer after termination
- Restrict employees from working for competitors after termination

Statutory requirements:
- Employers must provide safety training and skills development for employees
Government support:
- The government offers funding and incentives to encourage businesses to provide training

Legal requirements:
- Discrimination based on race, gender, religion, or other protected characteristics is prohibited
Enforcement:
- Government agencies are responsible for enforcing diversity and inclusion laws

Legal framework:
- Remote work is legal in Honduras
Tax and insurance implications:
- Tax and social security implications of remote work depend on the location of the work