Honduras: Part time employment on the rise

Employers in Honduras are still learning to dip their toes into the pool of talented part-time workers following the passage of the Hourly Employment Act.

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Honduras: Part time employment on the riseHonduras

By Julia Sandoval, GUFA Law

Employers in Honduras are still learning to dip their toes into the pool of talented part-time workers following the passage of the Hourly Employment Act.

The country had operated an ‘all or nothing’ framework for years and it has taken time for employers to embrace the notion of part time work, with smaller employers leading the way. It is hoped that the advent of part time work will generate:

  • 3000-5000 jobs in “maquilas” (factories that import duty and tariff free parts for assembly and re-export the assembled product back to the country of origin).
  • 25,000 – 40,000 jobs in call centres.
  • 60,000 jobs in small and medium sized enterprises.

The basic rules in relation to part time work are as follows:

  • The minimum work day is three hours.
  • Companies can hire up to 40% of their workforce on a part time basis.
  • Every part time worker is entitled to an extra 16% on top of their basic salary. This must be paid at the same time and in the same way as the basic salary.
  • Part-time work agreements do not generally contemplate the existence of a probation period.
  • Part-time workers are entitled to the same benefits as employees in relation to health, occupational risks, disability, sickness benefits and maternity leave.

Comment

The Hourly Employment Law has made a promising start and is set to help employers in Honduras achieve greater productivity and competitiveness by harnessing this untapped source of talented workers.

© 2017 GUFA Law

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