December is a busy month for companies in Honduras. Activity increases, additional personnel are required, and with that comes a rise in labor risk, particularly in temporary hiring and overtime. A single oversight can lead to conflicts and costly claims. Below, we explain how to manage these issues safely and strategically.
Understand the types of temporary contracts and their legal framework
In Honduras, temporary contracts are exceptional and should only be used when the nature of the service or task is truly accidental or temporary. Their maximum duration is 12 months, with no possibility of extension, as exceeding this term would eliminate their temporary character and allow the worker to claim permanent status. The main types are:
- Fixed-term contract: Establishes the end date from the outset. It is valid when an event or circumstance will necessarily terminate the employment relationship. This makes it the ideal model for staffing during festive seasons such as Christmas. It is also used to replace employees on medical leave, maternity or lactation leave, or to execute specific projects with a defined end date.
- Contract for a specific task or service: This type involves agreeing on a fixed price for completing the entire job or service, from start to finish. Payment is tied to the final result, not the hours worked.
Key legal considerations
- All employment contracts must be in writing, specify their duration, and justify the temporary nature of the role. They must also detail severance, benefits, and termination conditions.
- If not formalized properly, the contract may be presumed indefinite.
- Temporary workers have the same labor protections as permanent employees.
- If the role is inherently permanent, the employee may claim that the position should be considered permanent.
Strict compliance with overtime rules
The law sets limits on working hours and requires overtime to be paid with specific surcharges, as established in Article 330 of the Labor Code. Properly recording all hours worked protects the company from potential claims.
Remember that ordinary hours plus overtime cannot exceed 12 hours per day. Employers also cannot authorize overtime for the same employee more than four times per week, except in duly justified exceptional cases.
For example, if your sales team exceeds eight hours per day during December, ensure that every overtime hour is paid according to the law and properly recorded in payroll under the correct categories.
Continuous recordkeeping and monitoring
Maintaining a daily record of attendance and hours worked is essential. Clearly communicate schedules and overtime surcharges to your team. Transparency reduces errors, misunderstandings, and claims.
Advance planning is also key: determine how many temporary workers you truly need and what workloads are sustainable. This minimizes compliance risks and prevents overburdening staff.
Finally, document everything, contracts, overtime authorizations, payroll entries, and proof of payment. In the event of a labor inspection or claim, these records will be your strongest defense.
