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How to hire remote employees in
Little bit confused about hiring in Honduras? Like anywhere else, it’s got different labor laws than you’re probably used to. Which makes things complex. But it doesn’t need to feel overwhelming. You really have two choices: Hiring people as contractors, or hiring them as employees.
If you want to successfully hire in
Honduras
, you have two options:
Laws about hiring contractors are significantly more simple in
Honduras
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Honduras
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Honduras
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Honduras
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Honduras
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Honduras than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Honduras.
Paid leave depends on the length of service completed:
In addition to the leave, the employee is entitled to vacation pay, which must be paid out at least 3 days before the leave is taken.
There are 11 public holidays.
Mothers are entitled to 10 weeks of 100% paid leave, with salary partially covered by the employer and the IHSS. 4 weeks of leave should be taken before delivery and 6 weeks should be taken after.
There are no statutory laws for paternity leave.
There are no statutory laws for parental leave.
None.
None.
None.
Termination procedure depends on if it is a case of dismissal with just cause or wrongful dismissal.
Dismissal with just cause is effective from the moment the employer notifies the employee; however, the employee does have the right to take the employer to court and require they provide evidence to prove their dismissal was fair. If the employer cannot prove dismissal with cause, the employee is entitled to compensation for damages and losses and accrued unpaid wages. The employee also has the right to file a claim against the employer and request reinstatement.
If termination is deemed wrongful and the employee is reinstated, the employer is not required to pay termination benefits.
The notice period is determined by the length of employment:
For employees who were dismissed for just cause, there is no severance pay entitlement.
For employees who were dismissed for unjust cause or dismissed indirectly (i.e. failure on the part of the employee to pay wages on time) are entitled to severance pay:
None.
A full-time work week is 44 hours or hours a day. In addition, the maximum number of days in a workweek is 6.
Overtime pay is paid at the rate of 137.5% of the regular pay.
For work on a rest day, the pay rate is 200% of the regular pay.
For night work, the pay rate is 125% of the regular pay.
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