“NOT EVERYTHING IS IN THE LAW: WHAT YOU NEED BEYOND THE LABOR CODE TO LEGALLY TERMINATE AN EMPLOYEE”
HONDURAS – Can an employee be sanctioned or dismissed solely on the basis of the Labor Code?
The short answer is NO. Here’s why:
Honduran labor legislation does not authorize the employer to unilaterally impose disciplinary sanctions solely based on the Labor Code, as this legal framework does not regulate the internal disciplinary regime nor does it establish the specific procedures to be followed for the application of sanctions other than the termination of the employment contract. In fact, it requires the employer to take certain actions to apply sanctions within a proper and lawful procedure.
Article 94 of the Labor Code establishes that disciplinary sanctions must be provided for in additional regulatory instruments, such as the Internal Work Regulations, a collective bargaining agreement, an arbitration award, or the individual employment contract. In this regard, the Labor Code merely outlines the causes that may justify dismissal—some of which may relate to sanctionable conduct—but these do not, in themselves, constitute disciplinary measures per se. Rather, they are grounds for terminating the employment relationship. This creates a key distinction between disciplinary sanctions, which serve a corrective function within the ongoing employment relationship, and dismissal, which is an extinguishing mechanism.
Moreover, the Labor Code does not explicitly define who is responsible for imposing a sanction when an employee breaches their labor obligations. This further underscores the need for such procedures to be clearly defined in internal policies or regulations. In addition, Articles 87, 92, 94, and 96 of the Labor Code lay the foundational limits on the exercise of the employer’s disciplinary power. From a systematic interpretation of these provisions, several fundamental principles arise: legality, proportionality, reasonableness, and respect for due process. In accordance with the principle of legality, no sanction may be imposed unless it is previously established in a legal or conventional norm that is mutually accepted by both the employer and the employee.
Likewise, the Internal Work Regulations may not contain provisions contrary to the law and must be developed with the participation of the relevant labor actors, thereby ensuring respect for the principles of collective bargaining and social dialogue.
In conclusion, it is not legally valid to impose disciplinary sanctions on an employee solely on the basis of the Labor Code. For such sanctions to be legitimate, they must be previously established in internal or conventional regulations that respect the fundamental principles of labor disciplinary law. The absence of an express regulation on disciplinary sanctions and their procedures within the Code reinforces the importance of having an Internal Work Regulation—developed with proper legal counsel and duly approved by the competent authority—that serves as the legal framework for the legitimate exercise of disciplinary power within the company.
Delmer Sambrano
Senior Associate
Honduras
