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This content is for informational purposes only. We do not guarantee the accuracy or completeness of this content. It is not legal advice and shall not be relied on as such.

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

Employment contracts in Honduras 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.

The standard work week in Honduras 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. A standard workday including overtime work is capped at 12 hours, and employees can only work overtime four times a week.

Employees receive 66% of the last three months of income as paid sick leave in Honduras 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.

Female employees receive up to 10 weeks of maternity leave in Honduras with four weeks before the birth. Female employees receive maternity leave benefits at 100% of the standard pay during 42 days before childbirth and 42 days post childbirth. The Honduran Social Security Institute covers 66% of the basic pay and the employer covers the remainder. The employer covers the total cost in the case of female employees who are not qualified to enjoy the benefits of social security. There is no statutory paternity leave.

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

Employees in Honduras 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.

In Honduras, the public holidays are:

  • New Year's Day

  • Maundy Thursday

  • America Day

  • Good Friday

  • Holy Saturday

  • Labor Day / May Day

  • Independence Day

  • Morazan's Day

  • Columbus Day

  • Army Day

  • Christmas Day

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

In Honduras, 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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