Honduras is a country in Central America bordered by Guatemala, El Salvador, Nicaragua, the Pacific Ocean, and the Gulf of Honduras.

The country’s economy is mostly based on agriculture which accounts for 14% of its GDP. Honduras has extensive forests, marine, and mineral resources, and the landscape consists mainly of mountains, narrow plains, a large undeveloped lowland jungle, and the heavily populated Sula Valley.

The minimum wage in Honduras varies based on industry and company size, with an average of HNL 10,008.14 to HNL 13,346.47. The standard workweek is 44 hours with a maximum of 12 hours of overtime per week. Overtime work/pay is regulated by employment contracts and collective agreements, ranging from 137.5% to 200% of the regular pay.

Parental Leave

Pregnant employees are entitled to a minimum of 42 days of leave before the due date and 42 days of leave after the due date. This leave is paid for jointly by the employer and social security. There are no provisions for paternity leave.

Sick Leave

Employees are entitled to 26 weeks of paid sick leave, which can be extended to 52 weeks after 3 days of observation. Sick leave is paid for by the employer in the first 3 days, and from the 4th day IHSS will pay for 66% of the ceiling rate while the employer covers the difference between that and the employee’s salary.

Paid Leave

There are 11 public holidays in Honduras, and employees are entitled to paid time off each year based on how long they have worked at their company:

• 0-1 years = 10 days of paid leave
• 1-2 years = 12 days of paid leave
• 2-4 years = 15 days of paid leave
• 4+ years = 20 days of paid leave

Employees can also receive paid leave for bereavement, marriage, and civic duty.

Process

Employers can terminate a contract for reasons related to business, personal, or workers misconduct. Termination requires written notice and explanation for the termination. If terminating for misconduct, the employer needs to give a warning and a chance for the employee to explain their actions.

The employee can choose to take the employer to court for unlawful dismissals, and be due compensation or reinstatement if the employer cannot provide evidence of just cause.

Notice Period

The notice period in Honduras depends on the length of employment:

• 0-3 months = 24 hours notice
• 3-6 months = 1 week notice
• 6 months-1 year = 2 weeks notice
• 1-2 years = 1 months notice
• 2+ years = 2 months notice

Severance Pay

Employees who are terminated for unjust cause are entitled to severance depending on how long they worked at the company:

• 3-6 months = 10 days of wages
• 6 months-1 year = 20 days of wages
• 1+ years = 1 month of salary for every year of employment (up to 25)

Employees in Honduras are entitled to both a 13th month and 14th month salary, each equal to 1 month of wages. One payment is made in July and the other in December.