Honduras implements budget reform to facilitate state labor settlements

A reform to the General Budget of Honduras has entered into force, aimed at facilitating conciliatory settlements in labor lawsuits filed by citizens against state institutions. Published in the Official Gazette, the amendment to Article 95-A removes previous obstacles that limited the ability of parties to reach agreements.

The reform, introduced by Congress President Tomás Zambrano, eliminates the previous 80% limit on benefits in settlement agreements and the three-year payment timeframe. Under the new regulations, centralized and decentralized public administration institutions, autonomous entities, public companies, and universities can now undergo conciliation procedures following a first-instance ruling or recognized act. These procedures can be completed within a maximum of 45 calendar days without requiring the intervention of the Attorney General of the Republic.

Legislators noted that the change seeks to protect workers' rights by allowing direct negotiation between former employees and state entities, removing budgetary barriers that previously hindered the resolution of legal disputes.