Employer of Record Guide in 

Honduras

Vacation Leave

Annual vacation entitlement in Honduras increases with tenure:

Employees receive vacation pay plus a 25% vacation bonus (prima de vacaciones).

Sick Leave

• Paid sick leave: Up to 75% of salary for the first 26 weeks
• Medical certification: Required after 3 consecutive days
• Chronic illness: Extended coverage through social security
• Occupational illness: 100% salary coverage

Maternity Leave

Note: Research indicates discrepancy between sources - please verify current regulation.

• Duration: 10-12 weeks total (sources vary)
• Pre-birth: 4 weeks before expected delivery
• Post-birth: 6-8 weeks after delivery
• Compensation: 100% of salary through social security
• Job protection: Position guaranteed upon return

Paternity Leave

Male employees receive 10 days of paid paternity leave following the birth or adoption of a child.

Bereavement Leave

• Immediate family: 3-5 days paid leave
• Extended family: 1-2 days paid leave
• Definition varies: Based on relationship and company policy

Other Statutory Leave

• Marriage leave: 5 days paid
• Military service: Unpaid leave with job protection
• Civic duties: Time off for voting, jury duty
• Study leave: Unpaid educational leave may be granted

Summary

*Verify current maternity leave duration

Termination Categories

Termination With Cause (Despido Justificado):

• Serious misconduct, theft, or breach of contract
• No notice or severance required
• Must be documented and justified

Termination Without Cause (Despido Injustificado):

• Employer decision without employee fault
• Requires notice period and severance payment
• Most common form of termination

Notice Period Requirements

Notice periods in Honduras depend on employment duration and position level:

Employers may provide payment in lieu of notice.

Severance Pay

Severance compensation (cesantía) is mandatory for termination without cause:

• Calculation: 1 month's salary per year of service
• Minimum: 1 month's salary regardless of tenure
• Maximum: No legal maximum
• Payment timing: Within 30 days of termination

Final Pay Requirements

Employers must provide final settlement within 30 days, including:

• Outstanding salary and overtime
• Accrued vacation pay and bonus
• Proportional 13th month salary
• Severance payment (if applicable)
• Any other contractual benefits

Probationary Periods

• Duration: Maximum 2 months for most positions
• Termination: Either party may terminate without notice during probation
• Extension: Not permitted beyond 2 months
• Benefits: Probationary employees receive proportional benefits

Legal Protections

Employees cannot be terminated for:

• Pregnancy or maternity leave
• Union activities or membership
• Filing labour complaints
• Discrimination based on protected characteristics
• Exercising legal rights

National Holidays 2025

Honduras observes 10 official public holidays:

Holiday Pay Requirements

• Working on holidays: 2x regular pay plus substitute day off
• Holiday falling on weekend: Substitute day provided during work week
• Eligibility: All employees regardless of tenure
• Payment timing: With regular salary

Regional Variations

Some departments and municipalities may observe additional local holidays, but these are not mandatory for private employers unless specified in collective agreements.

Required Documentation

Employment Contract Elements:

• Job title, duties, and responsibilities
• Salary, benefits, and working hours
• Probationary period terms
• Termination clauses and notice periods
• Confidentiality and non-compete provisions

Employee Documentation:

• National identity card (Tarjeta de Identidad)
• Tax identification number (RTN)
• Social security registration
• Educational certificates (if required)
• Medical examination results
• Bank account information

Work Authorization

Honduran Citizens: No additional authorization required

Foreign Workers: Must obtain work permits including:

• Work visa from Honduran consulate
• Residence permit from immigration authorities
• Work permit from Ministry of Labour
• Social security registration

Background Checks

Permitted background verification includes:

• Criminal record check (Certificado de Antecedentes Penales)
• Employment history verification
• Educational credential validation
• Professional licence verification (if applicable)

Employee consent required for all background checks.

Data Protection Compliance

Honduras follows basic data protection principles:

• Employee consent for data collection
• Secure storage of personal information
• Limited access to confidential data
• Right to access and correct personal information

Contract Language Requirements

• Primary language: Spanish required for all official documents
• Translation: Foreign language contracts must include certified Spanish translation
• Legal compliance: All terms must comply with Honduran labour law

Onboarding Timeline

What the EOR Handles

Borderless AI manages:

• Employment contract preparation and execution
• Social security and tax registration
• Ministry of Labour compliance reporting
• Payroll processing and tax withholding
• Benefits administration
• Legal document translation and filing

Worker Classification

Honduras distinguishes between employees and independent contractors based on:

Employees (Trabajadores):

• Work under employer supervision and control
• Use employer-provided tools and equipment
• Follow set schedules and procedures
• Receive regular salary and benefits
• Protected by labour law

Independent Contractors (Contratistas):

• Provide services independently
• Use own tools and methods
• Set own schedules
• Invoice for services rendered
• Not covered by employment protections

Misclassification can result in penalties and retroactive benefit payments.

Unionisation Rights

Workers in Honduras have the right to:

• Form and join labour unions
• Engage in collective bargaining
• Strike (with legal procedures)
• Protection from anti-union discrimination

Employers must recognise unions representing 30% or more of workers and engage in good faith negotiations.

Anti-Discrimination Laws

Honduras prohibits employment discrimination based on:

• Gender, age, race, or ethnicity
• Religion or political beliefs
• Disability or health status
• Pregnancy or family status
• Sexual orientation
• Union membership or activities

Cultural Workplace Norms

Communication Style:

• Formal address using titles and surnames
• Respectful, hierarchical interactions
• Personal relationships important for business success

Work-Life Balance:

• Family obligations highly valued
• Extended lunch breaks common (1-2 hours)
• Religious observances respected

Business Practices:

• Punctuality expected but flexibility understood
• Personal connections influence business decisions
• Formal dress codes in professional settings

Remote Work Considerations

Remote work arrangements must address:

• Equipment provision: Employer responsibility for necessary tools
• Work schedule: Maintain standard 44-hour week limits
• Overtime tracking: Systems to monitor and compensate extra hours
• Health and safety: Employer obligations extend to home offices
• Communication: Regular check-ins and performance monitoring

Legal Framework: Honduras is developing specific remote work regulations. Current arrangements fall under general employment law with additional contractual provisions.