Country Information

The Republic of Honduras is located in Central America with a large inlet of the Caribbean Sea lined by the Belize Barrier Reef. Honduras’ population is estimated at 9.5 million people, and its capital, Tegucipalga, is surrounded by mountains. The Honduran government has implemented several measures to improve investment and trade, as well as simplifying import and export procedures. Honduras has a diverse export of goods such as coffee, apparel, shrimp, cigars, bananas, gold and palm oil.

Employment Contracts

Employment contracts can be indefinite or for a fixed term. Fixed-term employment contracts are for a defined duration or specific task that is not permanent. These contracts cannot be longer than a year, except when there is technical training required and then they can be 60 months long. There is no cap on renewals. The employment contract should be written and contain both parties’ details, the type of work, work hours, salary and other workplace policies and procedures, like notice period, annual leave, other leaves, probation, start date and end date, if applicable. Employers cannot discriminate against candidates or employees based on their gender or age. Local candidates must be given preference over international or expat candidates during the recruitment process. Employers are forbidden from performing pregnancy tests on candidates.

Working Hours

The standard work week is 44 hours with eight hours a day spread over six days. However, managerial and supervisory employees can work up to 12 hours a day. Night-time work hours are between 7 p.m. and 5 a.m. and capped at 36 hours a week, with six hours a day. Shifts that combine both day and night-time work are capped at 42 hours a week with seven hours a day. Those who are 14 to 16 years old can work up to four hours a day, and those who are 16 to 18 years old can work six hours a day. Their workweek cannot exceed 36 hours, and those younger than 16 years old cannot work overtime. A standard workday including overtime work is capped at 12 hours, and employees can only work overtime four times a week. Employees receive at least half an hour of rest per workday. Female employees and employees between 14 and 18 years of age are entitled to receive two hours of rest break in a workday. Employees receive one rest day per week on Sundays. Those working on Sunday receive another rest day as compensation. Public holidays that occur on Sundays are compensated by the employer with the standard pay plus the overtime rate.

Sick Leave

Employees receive 66% of the last three months of income as paid sick leave for up to 26 weeks which can be extended to 52 weeks after a three-day observation period. In the event of hospitalization and there are no dependents, the rate falls to 50%.Employees must have at least two months of contributions in the previous four months to qualify, and employers must provide sick leave to employees even if they are not covered by social security.

Maternity/Paternity Leave

Female employees receive up to 10 weeks of maternity leave with four weeks before the birth. It is capped at 66% of their wages, averaged over the previous three months. Female employees receive a paid leave of three months maximum in case of a pregnancy or delivery related illness, upon submitting a medical certificate. Beyond the three-month period, leave is unpaid and can be extended indefinitely. There is no statutory paternity leave.

Compensation

Employees receive a 14th month holiday bonus in July and a 13th month Christmas bonus in December. Each is one month of pay.

Vacation Leave

Employees receive paid annual leave of 10 days after one year of employment; 12 days after two years of employment; 15 days after three years of employment; and 20 days after four or more years of employment. They are paid three days prior to the beginning of annual leave.

Public Holidays

Honduras observes the following public holidays:

  • New Year’s Day
  • Maundy Thursday
  • Good Friday
  • Holy Saturday
  • Pan-American Day
  • International Labor Day
  • Independence Day
  • Francisco Morazán’s Day
  • Discovery of America Day
  • Armed Forces Day
  • Christmas Day
Health Insurance Benefits

Residents receive basic healthcare coverage and primary health care services are free. Some companies provide supplementary private healthcare insurance.

Employment / Termination / Severance

The probation period is 60 days. An indefinite employment contract can be terminated by mutual consent if the notice period and a just reason is provided. The notice period is a day for up to three months of service, seven days for up to six months of months, 14 days for up to one year, one month for up to two years of service and then it is two months of notice beyond that. Severance is paid if an indefinite contract is terminated on unfair grounds.

Local Laws & Regulations

We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.

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