When incorporating a company to exploit a commercial activity through a company, it is done with the objective of long-term growth and development to exist permanently. However, businesses are subject to their economy and that of the countries in which they operate, and in certain cases, they may close for different reasons. When these reasons are economic, the phenomenon acquires a complexity that finds a basis in all the world’s economies.
Honduran labor legislation establishes that workers may participate in the profits or benefits of their employers, but never assume their risks or losses. Based on this, if a company finds it necessary to close operations, even for economic reasons, it must always guarantee the payment of benefits and social indemnities corresponding to the workers, with this having priority over other creditors.
Currently, Honduras has an obligation to deposit to the Individual Capitalization Labor Reserve Fund, administered by the Private Contributions Regime (RAP). The employer is required to deposit, as a labor reserve, 4% of the worker’s ordinary salary.
The purpose of this fund is to guarantee the employee’s compliance with the severance payment and that, at the time of termination, he/she will not be economically affected. These resources are an aid in the event of closing of the companies due to economic situations, since, upon compliance with this deposit, the worker has the guarantee of having this fund at his disposal. The companies are obliged to guarantee their employees the right to their salary and other benefits arising from the labor relationship, without the risks or losses affecting the employees.