Honduras
Capital: Tegucigalpa
Currency: Honduran Lempira- HNL
Honduras Employment Law and Hiring Policy Overview
Overview of Employment Laws
- 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.
Employment Contract Requirements
- 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
Working Hours Regulations
- 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
Vacation Policy
- 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
Employee Termination and Contract Termination
- 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
Tax Laws
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Personal income tax:
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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%
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Social security contributions:
- Employee: 5%
- Employer: 16.60%
Health Insurance
- Insurance policy:
- Honduran residents are entitled to basic health insurance, with free primary healthcare services
- Some companies offer supplemental private health insurance
Compensation and Benefits
- 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)
Work Permits and Visas
- Permit requirements:
- Foreign workers require a work permit
- Application process:
- Contact the Honduran Immigration Department
Confidentiality and Non-Compete Clauses
- 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
Training and Development
- 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
Workplace Diversity and Inclusion
- 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
Remote Work Policy
- 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
Authoritative Website Address
- Ministry of Labor of Honduras: https://www.trabajo.gob.hn/