Employer in Honduras

The employer's role in Honduras includes organizing the business, hiring and managing employees, and complying with labor, tax, and social-security obligations. The employer may operate as a patrono, empleador, or empresa; an employer's representative (representante del patrono) acts for the company within the limits of the law and the contract. If there is no written contract, this works against the patrono because an employment relationship is generally presumed when there is personal work, subordination, and pay. Depending on the activity, formalization includes a National Tax Registry (Registro Tributario Nacional (RTN)) with the Tax Administration Service (Servicio de Administración de Rentas (SAR)), where applicable a municipal operating permit (Permiso de Operación), and employer registration with the Honduran Social Security Institute (Instituto Hondureño de Seguridad Social (IHSS)). IHSS registration requires, among other things, corporate, identity, RTN, and address documents, as well as an employee list containing identification numbers, start dates, actual wages, and positions. Contributions, insurance coverage, and local fees depend on the activity, workforce size, and location. Work Regulations (Reglamento de Trabajo) are required for more than five permanent employees in commerce, more than ten in industry, and more than 20 in agriculture or forestry. For mixed businesses, the threshold is more than ten permanent employees. The Secretariat of Labor and Social Security (Secretaría de Trabajo y Seguridad Social (SETRASS)) approves the regulations after hearing employee and employer representatives. They may regulate hiring, probation, shifts, rest periods, overtime, leave, payment, and discipline, but may not reduce statutory rights. From ten permanent employees onward, the business needs an authorized Salary Book (Libro de Salarios); businesses with three to nine employees may use IHSS payroll forms (Planillas) according to the IHSS model. The patrono pays the agreed remuneration on time, at the agreed place, and under the agreed conditions. The patrono provides suitable tools and materials, safely stores items entrusted to it, pays wages for downtime caused by the employer, and grants statutory, public, and certain union-related leave. The patrono protects employees' dignity, prevents violence and discrimination, enables hygiene and safety, provides information to labor inspectors, and takes measures to prevent accidents. These measures include first-aid supplies and, where applicable, compensation for workplace accidents or occupational diseases. Prohibited conduct includes forced purchases, hiring fees, discrimination because of union membership, unlawful wage deductions, unauthorized penalties, retaliation for complaints to authorities, and work that endangers health. As a general rule, at least 90 percent of employees must be Honduran nationals and at least 85 percent of the payroll must be paid to Hondurans. SETRASS may change these quotas with justification or allow exceptions. Training and semiannual reporting duties apply; up to two Gerentes, Directores, Administradores, Superintendentes, or Jefes Generales are excluded from the quota calculation. The 2026 minimum wages are governed by SETRASS Regulation 233-2026, the economic sector, and the size of the business, and apply from January 1, 2026. An Educational Bonus (Bono Educativo) is based on the applicable table and applies from 16 employees onward. The maximum limits are eight hours per day and 44 hours per week for daytime work, six hours per day and 36 hours per week for night work, and seven hours per day and 42 hours per week for mixed work. Work on public holidays or rest days is paid at double wages. The General Regulations on Preventive Measures (Reglamento General de Medidas Preventivas) require permanent occupational safety and health programs, hazard prevention, free personal protective equipment, first-aid equipment, and employee registers. Joint hygiene and safety committees support workplace oversight. IHSS membership depends on the existing coverage; if required employer insurance is missing, the employer may remain responsible for illness or risk-related costs and further wage obligations. A union may be formed with 30 members. An employers' union requires five independent patronos. Employee representatives come from the union or an assembly. The Directorate General of Labor (Dirección General del Trabajo (DGT)) registers unions, collective agreements, and internal work regulations. Employees who submit a founding notice receive special state protection until legal personality is obtained; union board members receive special protection against dismissal from their election until six months after the end of their office, as well as judicial review of an allegedly lawful reason for dismissal. The patrono deducts and remits ordinary or extraordinary union dues once the required proof has been provided. In disputes, the DGT and labor inspection authorities may inspect, reinspect, prevent, sanction, or mediate a settlement. The DGT conciliation procedure (RACL) serves to resolve disputes amicably. Labor courts decide individual and collective disputes, union protection matters, and questions concerning occupational safety and social security. A strike requires direct negotiations, mediation, conciliation, and, where applicable, arbitration; the notice period is at least six days, or ten days for public services, and two-thirds of employees must approve it. An employer lockout is permitted only peacefully and for economic or social reasons. When the patrono changes, existing contracts continue. The former and the new patrono are jointly and severally liable for six months for previous obligations. A temporary suspension may be permitted, for example, because of shortages of raw materials or power, excess production, lack of profitability or financing, or force majeure. SETRASS must be informed within three days after an event occurs or, for foreseeable reasons, 30 days in advance; for certain economic reasons, employees must also be notified 30 days in advance. The resumption of operations must be reported to SETRASS; anyone who does not return within 30 days may lose their employment relationship. In the event of permanent closure or liquidation, statutory benefits and compensation remain owed. Depending on the duration of employment, the notice period ranges from 24 hours to three months, and is up to two months for more than two years of employment. Severance for termination arises after three months and generally amounts to one month's wage per year of employment, up to a maximum of 25 months; for microenterprises with no more than ten paid employees, a special limit of 15 months applies. In the case of pregnancy, dismissal may take place only after a court has previously established a lawful reason for termination. A certificate of employment is free of charge. Ongoing costs include wages, IHSS contributions, tax and reporting obligations, severance, notice periods, and accident and safety expenses.