NEW LABOR INSPECTION LAW

Decree 178-2016

The new law arises from the tripartite agreement reached by representatives of workers, businessmen and the government. The purpose of the law is to ensure that companies comply with rights such as working hours, social security, payment of wages and adequate conditions of hygiene and safety to workers.

This law also establishes a series of sanctions. The following are the most severe fines:

  • Obstruction of the inspector's work; Which carries a fine of HNL 250,000, without this dismissing further sanctions against the possible finding of other legal contraventions, in addition the STSS representative can request police accompaniment without the need for a judicial order and stop the operation of a company, if Considers that the lives of workers are endangered.
  • Violation of the right to freedom of association and fundamental rights at work; the diminishment of the same is punished, with a fine of HNL 300,000.
  • Non-compliance with collective employment agreements; the non-compliance with these obligations is sanctioned with a fine of HNL 250,000.
  • Non-payment of wages; In the event of non-compliance with the minimum wage or any other financial loss, for each violation, a fine equal to 25% of the right not to be paid to the worker, in addition to compliance with the demanded right, will be applied.

 

Note; There are also legal and compliance mechanisms in peremptory terms, which may exempt the employer from the fines to which he has been credited, as long as he complies with the remedy of the violated rights to workers in less than 10 days, except in the case of obstruction of the work of the inspector or the unionization of workers. In addition, counseling inspections can be provided to employers who voluntarily wish to comply with labor laws without incurring a penalty immediately.

 

It is also important to state that with the previous law the highest fine was five thousand lempiras.

 

This new law came into force last March and is awaiting the publication of its respective regulations to begin its implementation. It is important that companies are aware of the employment obligations to which they are subject, so that they are not fined due to non-compliance infractions.

For more information regarding this article or employment law in general please contact our specialized Attorneys Gustavo Adolfo Zacapa (gustavo.zacapa@gz.hn) and/or Marco Durón (marco.duron@gz.hn)

 

Author: Marco Durón