Learn about the legal processes for employee termination and severance in Honduras
In Honduras, the Labor Code stipulates a minimum notice period for employers intending to terminate indefinite employment contracts. The duration of this notice period is contingent on the length of service of the employee.
It's important to note that these requirements apply to terminations initiated by the employer. Employees who are voluntarily resigning typically need to provide less notice, although the specifics may be outlined in their employment contract.
Severance pay, or Auxilio de Cesantía, in Honduras is a financial compensation that employers are legally obligated to provide to employees upon termination of employment under certain circumstances. The Honduras Labor Code (Código del Trabajo de Honduras) is the primary legal source governing these rights.
Severance pay is justified in the following situations:
Severance pay is not justified in the following situations:
Severance pay is calculated based on the employee's length of service and their average salary in the last six months:
Severance pay is capped at a maximum of 8 months' wages.
Employers must pay severance immediately upon termination of employment.
In Honduras, employers are required to follow specific legal procedures when terminating an employee's employment. The Honduras Labor Code (Código del Trabajo de Honduras) provides the valid reasons for termination.
Termination with Just Cause: The employer has the right to dismiss the employee for serious misconduct or reasons outlined in Article 112 of the Labor Code. These reasons include repeated absences or lateness without justification, dishonesty, violence, threats, or insults against the employer or colleagues, intentional damage to workplace property, negligence endangering safety, and engaging in actions expressly prohibited in the employment contract.
Termination without Just Cause: The employer can end the contract without a specific cause.
Mutual Termination: Both the employer and employee agree to end the employment relationship.
Indirect Dismissal: The employee resigns due to intolerable working conditions created by the employer. This is treated similarly to termination without just cause.
Written Notice: The employer is required to provide a written termination notice stating the reason(s) for dismissal and the effective date.
Proof of Just Cause (if applicable): If the termination is with just cause, the employer bears the burden of proving the employee's misconduct.
Right to Challenge: Employees have the right to challenge unfair dismissals via labor courts.
Special Protections: Certain employees, such as pregnant women and union leaders, have additional protections against termination.
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