7. LEGAL ASPECTS AND INCENTIVES
INVESTOR'S GUIDE HONDURAS 2020 - 2021
f. Overtime payment is recognized. g. Contracts may be concluded for 1, 3, 6, 9, or 12 months depending on the need of the employer. They may be renewed as often as needed, without the employee acquiring permanence and seniority, and they must also be registered. h. Contracts shall be concluded in accordance with the model established by the Ministry of Labor. i. These employees are also registered and entitled to Social Security, and registration is mandatory regardless of the salary to be earned, or whether they reach the wage cap or not. j. Contributions to the INFOP are mandatory. k. They are entitled to the payment of one vacation day for each month worked. l. Employees are entitled to one day off per week if they work 6 days, plus one day per month agreed between the parties. m. Hourly employees are given preference to fill a permanent vacancy in the company n. The grounds provided under the Labor Code on which the employer is allowed to dismiss the worker without liability on his part are applicable to him, and if dismissal is without a just cause, worker is entitled to compensation in the amount of money accrued until the date of termination of the current contract. o. This Law demands the payment of severance pay. p. The effective work performed outside the limits of the agreed working day, constitutes an extra-ordinary working day and must be remunerated in accordance with the provisions of the Labor Code (based on the minimum wage and not on the hours contracted).
The following is a description of each program: 7.6.1 LAW FOR HOURLY EMPLOYMENT: Through this Law, the parties may establish working contracts (hourly, ordinary half-days, daily, mixed or night shift), under the modalities of limited time or for specific work or services. The minimum hiring hours are 3 hours per day.
MODALITYOF WORKING DAY Day shift
HOURS PERWEEK 44 hours 42 hours 36 hours
HOURS PER DAY 8 hours 7 hours 6 hours
Mixed shift Night shift
EMPLOYEES RIGHTS: a. The Law on Hourly Employment establishes that remuneration shall include all the rights acquired by the worker, as well as severance payment, enjoyed by permanent workers. b. One day of vacation per month (12 days of rest per year). c. It is compulsory for companies, to make hourly workers permanent after a defined period. d. Hourly workers will receive compensation bonuses for period worked, in the event of termination of employment. e. Workers will enjoy the right to freedom of association and collective bargaining.
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