The Same New Step: Part-Time Employment Act

Miguel Medina, Associate at ARIAS Honduras, expert in Labor Law, shares this article on how the Decree 45-2026 formalizes 18-to-32-hour workweeks with proportional wages and benefits, under the Ministry of Labor's digital oversight. This framework specializes the Labor Code to promote formal employment for vulnerable sectors, addressing gaps in previous regulations

A legal legacy.

April through June are months of particular importance for labor matters in Honduras. In 1954, groups of banana workers were preparing for the historic demonstration on May 1 (which is now our National Workers’ Day). On April 18, 1974, Decree Law 121 was issued, which, together with its Regulations, regulates the Minimum Wage. This Decree recognizes for the first time the possibility of hiring by the hour. At the end of March (and beginning of April) of 2014, the Hourly Employment Law was approved and published, which was later repealed in April 2022. At the present time, at the end of March 2026 (and the beginning of April), the Part-Time Employment Law was approved and published.

These interesting coincidences make this analysis more than appropriate to commemorate the development of labor law in our country. The timeline that is fortuitously linked is appreciated, highlighting each contribution provided by the aforementioned regulatory milestones. From the year 54, which sees the birth of the current Labor Code, until the year 2022 when the repeal of the Hourly Employment Law is declared. Without these advances, and setbacks, Honduras would not have reached the culmination of the Part-Time Employment Law, nor do we reach this analysis.

With this introduction, we will be able to delve into the study of the new Decree 45-2026, contrasting it with its predecessor, the Hourly Employment Law. Finally, we will determine the most important points that companies should take into account when taking advantage of this new hiring modality.

The Spirit of the Law.

In Law, certain naturalist and romantic currents have adopted a phrase that evokes the essence found within a body of law, decree or article; the intention behind the article. It is typically used when there are abstract and casuistic concepts, or when the law in question presents deficiencies, errors or apparent internal contradictions or with some other provision embedded in the vast legal structure of our country. The spirit of the law... This is precisely the case of the Hourly Employment Law that was approved in 2014 and repealed in 2022.

The intention of this Law was to implement a new type of hiring that would benefit companies, as well as the vulnerable population of our society. From an economic and social perspective, the implementation of hourly employment produced a considerable number of job opportunities, especially for medium and small companies. According to the statistics available in 2014, more than 170,000 jobs would have been created through hourly contracts. This, undoubtedly, was a positive development for the Honduran population.

Despite the benefits of this Law, the truth is that the practice revealed a series of abuses of the law and workers' rights that the Ministry of Labor was not prepared to deal with. During the course of the Hourly Employment Law, there was an increase in complaints of job insecurity, dismissals of permanent workers in preference for hourly workers, and the unjustified transformation of permanent contracts to the hourly modality. The Law established preferences, prohibitions and fines for companies that harmed workers' rights, but the supervision and control mechanism established was deficient.

The new Part-Time Employment Law becomes the spiritual successor of the Hourly Employment Law. This new Decree includes a large number of figures and concepts, as well as rights and prohibitions for companies and workers. The differential factor for the success of this new law will be the implementation of an effective and modern control system that allows the Ministry of Labor to ensure the correct implementation of this type of contracting.

Provisions of the New Law.

In this section, we will delve into the provisions that make up the Part-Time Employment Law to fully understand the figure and how it is combined with the labor rights of workers.

1. Deadlines and Time: The part-time contract is a type of contract that enables the worker to provide his or her workforce for a range of between 18 hours and 32 hours per week. Per day, a minimum of 3 hours must be worked. The hours agreed between the worker and employer can be distributed, concentrated or reduced in the way determined by them. If a worker works for 3 continuous months an average of 32 hours per week (including overtime), the contract is considered transformed into a full-time contract.
2. Formality and Category: For this type of contract, it is not allowed to maintain a verbal agreement. It must be reflected in a written contract, signed by the parties and a copy delivered to each party, including the Ministry of Labor. In the event that a written contract is not signed, it will be presumed that the employment relationship is governed by a full-time contract, following the same principle of the Labor Code. The part-time contract can be configured for an indefinite period, a limited time or for a specific work. Although "part-time contract for a limited time" may sound like a tongue twister, it is not contrary to legal logic. When it is determined that the part-time contract is indefinite or limited, it refers to the time of validity of the employment relationship, not to the time to which the worker provides himself daily.
3. Exceptional Principle: Part-time contracts must be subject to the same principle of exceptionality as limited-time contracts established by the Labor Code. Limited-term or fixed-term employment contracts are applied only when the nature of the company's need warrants it. If the job that the company needs to fill is continuous and essential work in the commercial line, an indefinite term contract must be prioritized. If the job corresponds to an indefinite term contract, but a limited-term contract is signed, the worker may demand that it be recognized as indefinite.
4. Labor Exclusivity and Multiple Employment: In part-time contracts, exclusivity clauses or limitations to work in other similar companies in a commercial line cannot be established. This type of clause may only be established for workers who hold positions of management and trust within the company. This provision is established for the benefit of the worker. However, the worker cannot enter into an employment relationship with more than one company if the agreed work schedules clash with each other.
5. Salary and Overtime: As for the salary of the worker under a part-time contract, it is calculated on the hourly basis established in the minimum wage table, or using a salary of an equivalent worker to calculate the hour. With the amount of the established hour, it is multiplied by the number of hours worked. The possibility of performing overtime hours is granted to those agreed in the contract, following the indications of the Labor Code for their remuneration. For no reason may the hourly base applied in the part-time contract be less than the base established by the minimum wage.
6. Vacations and Rest Breaks: The vacations and breaks of the part-time worker are calculated based on the provisions of this new law. Workers are entitled to vacations proportional to their length of work, calculated by formulas detailed in the articles of this new decree. Vacation days are used according to seniority of the Labor Code, from 10 to 20 days depending on the number of years worked. This number is multiplied by the product of the division of the agreed hours per week/the hours of the agreed working day (daytime, mixed or night). Daily and weekly breaks are determined based on the number of hours and days worked. When in a day, the worker works 5 hours, he will be entitled to a 30-minute break. If this same worker works 5 days in a week, he must be entitled to the rest of the seventh paid day.
7. Social Security Institutions: Like full-time workers, part-time workers have the right to be registered with Social Security and the Private Contribution Regime (RAP), as well as with the National Institute of Vocational Training (INFOP). The contributions will be proportional to the salary earned by the worker. The Honduran Social Security Institute (IHSS) will soon issue a regulation to determine the operation of the contributions for part-time workers. This is especially important in cases of multiple jobs. Since the part-time worker can contract employment relationships in more than one company, each company that hires this worker must make proportional contributions. In turn, the institutions must duly trace the payments made by both companies.
8. Acquired Rights: To complete the suite of acquired rights, workers hired part-time will receive the thirteenth and fourteenth month proportional to their salary, as well as labor compensation such as notice, unemployment aid and pursuing the wages not received or their reinstatement.
9. Contractual Termination: Finally, if the contract is for an indefinite period, it can be terminated under the same traditional grounds that derive from the Labor Code. If the contract is for a definite term or fixed term, the employment relationship ends when the agreed term arrives; however, if the employer decides to cut the employment relationship before the end of the term, the worker is entitled to compensation for the amount he or she would have earned during the remaining time of the contract.

The Ministry of Labor and Social Security (STSS) will have the obligation to formulate a surveillance and control system for part-time contracts. In the last weeks of April, the authorities of the Ministry of Labor announced the development of a digital platform where part-time contracts will be entered. If the company does not comply with the registration of the part-time contract, it will be presumed that the contract is for an indefinite and full-time period.

Worker A, practical look.

To consolidate the above information, a practical example is proposed in the person of "Worker A". Worker A was hired by one company, from 8:00 a.m. to 12:00 p.m., and by another company from 2:00 p.m. to 6:00 p.m. Both jobs are carried out during the daytime. Both schedules comply with 4 hours a day, five days a week, from Monday to Friday, for a total of 20 hours per week for each contract.

The contract in the first company is part-time for an indefinite period, while the contract in the second company is part-time for a definite period. In the first company he fills a job position as a secretary, and in the second company he is in charge of ordering the logistics of shipments of the products for the next day. In the second company he works temporarily covering the position left by the incumbent worker, who is absent due to disability.

The equivalent monthly salary of a full-time secretary in the first company is L. 20,000.00. For the purposes of calculating the salary under a part-time scheme, the proportion between the weekly hours actually worked and the maximum legal ordinary working day is used as a reference.

In this case, Worker A works 20 hours per week, compared to an ordinary daytime shift of 44 hours per week, which represents a ratio of 20/44 (0.4545).

Consequently, the proportional monthly salary amounts to L. 20,000.00 x 0.4545 = L. 9,090.91.

This same criterion of proportionality must be applied to determine the salary in the second company.

In terms of vacations, if Worker A has worked for one year, he would be entitled to 10 days according to his seniority. Applying the proportion of his part-time work (20/44 = 0.4545), the result is a total of 4.55 days of proportional vacation.

In practice, this value is not strictly handled in fractional days, but can: (i) be converted into hours of rest, equivalent to 18.2 hours of vacation, considering a daily working day of 4 hours; or, (ii) be rounded up according to the employer's internal policy, usually to 4.5 or 5 days, applying criteria favorable to the worker.

Since Worker A does not work at least 5 hours a day in either of his two jobs, neither of the companies would be obliged to grant him the 30-minute intra-day rest.

Worker A has the right to be registered in the IHSS, RAP and INFOP. The two companies contribute proportionally to these institutions, based on the salary agreed in the contracts.

At the end of a year and a half, the first company decides to terminate the contractual relationship with Worker A. This worker is entitled to receive all the proportional benefits of any other full-time worker. He will receive in his benefit the proportional amounts of thirteenth and fourth month, vacations, unemployment and notice applicable. In the second company, the term of validity of the contract came to an end, naturally terminating the contractual relationship. If the case had been that the incumbent worker returns from his disability 1 month earlier than estimated, terminating the contract early for a definite period, Worker A continues to have the right to request the month that would have accrued if the contract had naturally ended.

Opportunities and Criticisms.

This new Part-Time Employment Law truly has the potential to generate new opportunities and jobs, just as its predecessor did. These laws go beyond the economic or commercial level, as they affect the very fabric that makes up society. People, especially those in positions of study, parental responsibility or in age-reduced capacities, now have the opportunity to earn income through a contract that is attractive to companies.

This new law aims to combat unemployment and underemployment, which are very present problems in Honduras. According to the National Institute of Statistics, in 2025 more than 2 million Hondurans with the ability to be economically active had difficulty finding or keeping a job. In addition, the law provides an opportunity for small and medium-sized enterprises to develop by having at their disposal a contract that is flexible, both financially and logistically speaking. The provision of the part-time contract fosters a virtuous cycle in which companies and workers collaborate with each other.

Is this new Law perfect? Surely not. Will it definitively resolve the issue of contracts under hourly or part-time modalities? Surely not. Is this new Law a step in the right direction? Definitely yes. The criticisms that were raised against this Part-Time Employment Law are understandable, since it evokes ghostly apparitions of the legal injuries resulting from the repealed Hourly Employment Law. Workers' bodies and unions harshly attacked this new law, prophesying a new wave of job insecurity, a decentralization of the applicability of the Labor Code and a favoring of companies over workers.

The lack of information and lack of understanding of the provisions of this law contribute to the fear that the working population has so openly expressed. This new law does not imply a detachment from the Labor Code, but a specialization of it. This new law does not intend to favor only companies, but also the vulnerable sectors of the Honduran population. We must leave a finger on the line of precariousness and abuse of labor law through this new form of contracting, and it will depend entirely on the ability of the Ministry of Labor to be able to successfully land the implementation of this contract.

The same new step.

The Part-Time Employment Law is the same step, but new. We went from the repeal of the Hourly Employment Law to taking the same step forward, but with new approaches and improvements that denote a greater understanding of the needs of workers. Now workers under this contract can enjoy seniority, vacations, proportional benefits, regularization with the Social Security Institutions and other rights that were not implemented in the previous Hourly Employment Law. This new law will not be perfect, but it once again lays the foundations to be able to develop a hiring model that is successfully implemented in many countries around the world.

Honduras must openly embrace the Part-Time Employment Law, using it as an effective tool in the different business models found in the market of our country. The understanding and correct interpretation of this regulation is essential, therefore, it is necessary for companies to rely on legal professionals capable of advising companies and workers.