Employment Law

Employment Contracts in Honduras

Employment contracts in Honduras must be in writing and should include all relevant information about the position, such as salary, benefits and termination rights. The contract should also be written in Spanish and in the local currency of Honduras, the lempira.

Fixed Term

Indefinite

Honduras Working Hours

The standard working week for Honduran employees is 8 hours per day, with a maximum of 44 hours per week. The maximum working hours are reduced to 36 hours for night shift workers and to 42 hours for workers working day and night shifts.

Holiday Policy

Honduras Vacation

Honduran employees are entitled to increasing amounts of paid leave the longer they serve their employer. After one year of employment, employees are entitled to at least ten days of vacation. After two years, this number increased to 12 days, after three years to 15 days, and after four years to 20 days .

Honduras Sick Leave

After the first three (unpaid) days of absence due to illness, Honduran employees are entitled to 26 weeks of paid sick leave (which may be extended to a full year in certain exceptional circumstances). Compensation is two-thirds of the average salary for the previous three months of employment.

Parental Leave in Honduras

Female employees in Honduras are entitled to 12 weeks of paid maternity leave, including 6 weeks before and after childbirth. The salary is two-thirds of the average salary of the previous three months.

Male employees in Honduras are not entitled to any paternity leave, although some employers choose to provide benefits.

Termination and Severance in Honduras

The length of mandatory termination notice for Honduran employees depends on their length of service. For employees with less than two months' service, only 24 hours' notice is required. This will increase gradually, with up to two months’ notice.

Severance pay may also be necessary and will vary depending on the employee's length of service, ranging from ten days' pay to one month's salary for each year of service.

Honduras Taxes

Employers in Honduras are required to contribute 3.5% and 4% of wages to the national social security program and the unemployment fund respectively.

Honduras' income tax is progressive, with rates ranging from 0% to 25% depending on income level.

The corporate tax in Honduras is 25%.

Health Insurance in Honduras

Honduras has an excellent public health care system. However, many employers do choose to offer private health insurance as part of their benefits package.

Salary and Benefits

Reparations Law in Honduras

Minimum wage regulations in Honduras are relatively complex, and mandatory minimum wage rates vary widely, depending not only on the type of job but also on the size of the company. Therefore, when recruiting in the country, it is important to determine exactly what rates will apply to your employees.

Benefits Administration in Honduras

Many workers in Honduras choose to offer their employees a benefits package that includes additional pension contributions, company car allowances, paid time off, holiday bonuses, and more. However, setting up a welfare system in Honduras can be difficult if you are not familiar with the country's complex labor laws, language, and administrative regulations.

Outsourcing your benefits administration processes ensures you fully understand and follow the rules, ensuring your compliance and significantly speeding up the process. At Remoly, our Honduran employment experts will help you find and arrange your benefits, advise you on your strategies, and ensure compliance with the law.