Labor laws that affect you: what you should know before accepting a job

Before looking for work as an employee, it is useful to know your rights under labor law. This will help you negotiate your salary and benefits, and evaluate the offers you receive. Some jobs involve formal contracts between employer and employee, especially in more advanced positions; entry-level jobs are usually informal and without a contract.

This topic summarizes what the Ruta de Vida guide, published by IPA-Copan in partnership with Rotary, explains about the labor laws of Honduras. It does not replace the advice of a lawyer or the text of the Labor Code: it is the map for knowing what to ask.

If you are a minor

The Constitution establishes that the minimum working age is sixteen years. However, the Labor Code allows young people to start working at fourteen, as long as they keep attending school. In that case they cannot work more than four hours per day or more than twenty per week.

Wages and working hours

• Minimum wage. There is a legal minimum wage, and its amount varies by industry and by the number of employees in the organization. In practice, many people in rural areas of Honduras earn considerably less than that minimum for full-time work. Knowing the minimum that applies to your sector helps you evaluate an offer.
• Fourteenth-month bonus (decimocuarto) and Christmas bonus (aguinaldo). In Honduras you are entitled to the decimocuarto and the aguinaldo: the employer must pay two additional months of salary each year, in June and in December.
• Work week. The standard week is forty-four hours, usually spread over six days. Work beyond that amount must be paid as overtime, at a higher rate than the regular wage.
• Probation period. It is common for an employer to hire you for an initial probation period of one or two months. It allows you and the employer to confirm that you are suited for the job before a long-term commitment. You may be paid less during that time: ask before accepting.

Employee benefits

If you work in a restaurant or hotel, you will probably have extra income from tips. Depending on the job, some employers offer special benefits, such as free meals or even a place to live.

After working for one year, employees are entitled to paid vacation, which generally ranges from ten to fifteen days per year depending on seniority and other factors. There are also public holidays that are recognized with paid time off.

Employee rights

There are legal requirements for dismissing employees, including advance notice and severance pay calculated according to time worked. The law also recognizes maternity leave, the right to join a union, and the right to be free from harassment and discrimination.

When an employment relationship ends, for whatever reason, prepare a clear list of the benefits and payments you are entitled to (days worked, proportional vacation, aguinaldo) and politely ask on which dates you can come by to collect them.

Are the laws respected?

It has to be said clearly: employers often ignore labor laws, and they are rarely enforced when complaints are filed. In practice, you depend on the goodwill and honesty of your employer.

Large organizations generally treat their employees better because they know the law. Basic jobs, for example in small shops, can be very informal, and the owner probably does not know much about the law.

That is why, before accepting a job, do everything you can to research how the employer treats their people. And during the interview, ask which benefits are included: the topic on how to prepare for an interview has the list of questions.

If you are treated unfairly at work, you have four options:

1. Accept your working conditions.
2. Try to convince your boss to treat you better.
3. Look for a better job elsewhere.
4. The definitive solution: work for yourself. The topic on entrepreneurship and microenterprises explains where to start.

Employee, contractor, or your own business

Labor laws protect the employee: relatively stable income, the benefits the employer is required to provide, and responsibilities that end when you leave work each day. In exchange, you give up freedom: the boss says what to do and on what schedule.

Contractors work for a client until a project is finished and move on to the next one. They do not have the rights of employees: they negotiate the terms with each client, often through a written contract, and decide how many hours they work. They have much more freedom, but they struggle to control how much work they will have each month, what people call «feast or famine». To survive the bad times, you have to save during the good ones.

There is no right answer for everyone. Many people start as employees to gain experience, then work as contractors, and later create their own business. What matters is to keep learning and take advantage of the opportunities that come along.