7. LEGAL ASPECTS AND INCENTIVES
INVESTOR'S GUIDE HONDURAS 2020 - 2021
7.5.2 INTERNAL COMPANY POLICY The Internal Company Policy is the set of mandatory rules that determine the conditions to which the employer and the employees of a company must be subject in the provision of the service. The Internal Company Policy is mandatory when an employer has: a. More than five permanent employees in commercial companies. b. More than ten workers in industrial companies. c. More than twenty workers in agricultural, livestock or forestry companies. A joint committee constituted of representatives of the employer and the employees, will review the text of the Policy prior to submitting it to the Ministry of Labor for approval, through a legal professional (articles 87, 88, 89 of the Labor Code). When the application is submitted with all the required documents and requirements, the Ministry takes an average of 30 working days to approve it, and to issue the relevant certification. 7.5.3 SPECIAL POLICY When the activity of the company is not covered by the General Regulations on Preventive Measures for Accidents at Work and Occupational Diseases, the approval of a special policy is required, to regulate existing risks of the company, and is also approved by the Ministry of Labor. A legal professional will submit the application with all the documents and requirements. The Ministry takes an average of 30 working days to approve and issue the certification.
7.5.4 OBLIGATIONS Employers are also required to:
a. Grant paid vacations to the workers, after each year of continuous work, in accordance with Chapter III, Title IV of the Labor Code. b. Merchants must keep a register of employees with pertinent information. c. Pay the Education Bonus to workers who earn up to two minimum wages. This bonus will be paid once a year, as compensation to parents and children of school age. The bonus will not be paid to those working in small and micro-enterprises, with no more than 15 permanent workers (Decree No. 43-97 May 1997). d. Pay each worker the thirteenth month of wages as social compensation. This payment must be made in June (Legislative Decree No. 135-94, June 1995). e. Require work permit to foreign persons before hiring. According to Law No. 110, November 1966, article 11 of the Labor Code, a company may not employ less than 90 % of Honduran workers, and no more than 15% of company payroll may be paid to foreign workers. f. Request authorization for working permit for children over 14 and under 18 years of age. This authorization is granted at the request of the minor’s parents, siblings or legal representative (articles 115, 119, 120 and 122, Children and Adolescents Code). g. Pay at least minimum wage and comply legal salary adjustments when approved. 7.6 INCENTIVE REGIMES FOR EMPLOYMENT GENERATION Employment programmes are implemented and developed through the Honduran National Employment Service, that includes: a. Law for Hourly Employment b. Presidential Program "Con Chamba Vivís Mejor" c. Program "Chamba Joven"
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