PZ Labor Inspection

Labour inspection is an essential part of the labour administration system, carrying out the fundamental function of labour law enforcement and effective compliance[1].

The ILO Labour Inspection Convention (1947)  was ratified by the State in Honduras and has been in force in the country since May 6th, 1983[2]. Article 35 of the ZEDE Organic Law confers upon Próspera ZEDE the duty of guaranteeing the labor rights of workers in alignment with the parameters set forth in international treaties, and of enforcing the provisions set forth in the ILO Conventions ratified by Honduras.

The Próspera Labor Statute, which implements governing Honduran constitutional and treaty obligations relative to international labor standards and human rights, states that the Technical Secretary of Próspera ZEDE shall be deemed the Próspera Labor Relations Inspector within the jurisdiction.

Contact Próspera Labor Relations Inspector: ots@prosperazede.hn

Services:

  • Conciliation meetings between employee and employer;
  • Legal opinions on labor issues;
  • Response to inquiries and questions about labor rights;
  • Receipt of complaints of labor rights violations;
  • Receipt of notifications of occupational accidents and illnesses;

Applicable Law in Próspera ZEDE

Given its constitutional autonomy and decentralized governance regime, Próspera ZEDE has a different set of labor rules than those applicable under the national ordinary regime of Honduras. National labor legislation is not applicable in Próspera ZEDE.

In addition to constitutional principles of human rights protection, international labor treaties and conventions ratified by Honduras, and the ZEDE Organic Law, labour rules in Próspera ZEDE are primarily set forth in the Próspera Labour Statute, the Roatán Common Law Code (Restatement of Employment Law), Labor Resolutions approved by the Próspera ZEDE Council of Trustees, and the Enforcement Policy Statements issued by the General Service Provider (GSP).

Labour Rights

The Próspera Labor Statute recognizes the right of employees to organize in a union and peaceably strike as well as the right of employees not to be unconscionably forced to join a union; further requiring a labor division to be established in the default Arbitration Service Provider to handle labor disputes.  

It establishes a minimum wage equal to 125% of the Honduran minimum wage if the employee waives customary Honduran labor benefits or otherwise 110% of the general Honduran minimum wage. It requires the employer to pay overtime equal to 125% of base compensation for hours worked by covered employees above 48 or days worked in excess of 6 in a week. And it requires employers to fund a trust account with an amount equal to 10% of a covered employee’s salary if 125% or more of the Honduran minimum wage is paid, and 25% if 110% of the Honduran minimum wage is paid, which the employee has the right to invest, retain for retirement and permanent disability, or spend on medical, educational, housing, and legal expenses.

At the same time, family and small business employees, interns and entry level hires are deemed non-covered employees to mitigate the commonly recognized negative economic impact on overall employment from the minimum wage and enhanced compensation requirements.

Dispute Resolution

As mandated by article 139 of the Honduran Constitution and article 35 of the ZEDE Organic Law, labor disputes in Próspera ZEDE may be resolved by arbitration. The Labor Division of the Próspera Arbitration Center offers a cost-effective and streamlined process for the resolution of labor conflicts within Próspera ZEDE. See PAC Labor Division rules: (https://pac.hn/wp-content/uploads/2020/10/Small-Claims-and-Special-Division-Rules-vFinal-Redlined6825-ES.pdf).

  1. Notice of Arbitration: The process starts by filing a Notice of Arbitration before the PAC, in which the plaintiff explains the nature of the dispute and the relief requested. Filings can be done to the following email: legal@pac.hn
  2. Response: The respondent has 14 days to respond to the claims filed with the PAC.
  3. Appointment of Arbitrators: The Center will proceed with the appointment of the arbitrator who will hear the legal dispute, in accordance with the applicable rules.
  4. Oral Hearing: Within the following 15 days, an oral hearing will be scheduled either physically or electronically, where the parties may represent themselves or through counsel. The hearing will last approximately two hours.
  5. Arbitration Award: The Arbitral Tribunal, after hearing the parties and reviewing the evidence, will issue an arbitration award that has the force of a court judgment to resolve the dispute. The parties are obliged to comply with the arbitration award, which can also be enforced with the assistance of Prospera ZEDE and the courts of New York Convention Member States.
  6. Appeal: Within 10 days from the date of the arbitration award, the parties may file an appeal against the arbitration award if they are dissatisfied with the decision made by the arbitral tribunal.

[1] https://www.ilo.org/asia/WCMS_224120/lang–en/index.htm

[2] https://www.ilo.org/dyn/normlex/en/f?p=1000:11200:0::NO:11200:P11200_COUNTRY_ID:102675