Employment Law Cheat Sheets
Quick reference for employment laws in 6 countries. No legal jargon—just what you need to know to stay compliant and avoid expensive mistakes.
Quick Comparison
| Aspect | 🇺🇸 USA | 🇮🇳 India | 🇵🇭 Philippines | 🇩🇴 DR | 🇭🇳 Honduras | 🇨🇴 Colombia |
|---|---|---|---|---|---|---|
| Termination Difficulty | Easy | Moderate | Hard | Hard | Very Hard | Moderate |
| Mandatory Benefits Cost | Low | High | Moderate | High | High | Very High |
| Notice Period Required | None | 30-90 days | 30 days | 7-28 days | Varies | None (pay instead) |
| Severance Obligation | None | If retrenched | If authorized | Always | Always | Without cause |
USA
Updated: January 2025
Hiring & Onboarding
37 states restrict
21 states prohibit
State-specific rules
Compensation & Benefits
States may be higher
14 states require
But must pay if promised
Same day to 30 days
Termination & Separation
At-will = no notice
Unless in contract
If not for cause
State restrictions apply
No obligation
India
Updated: January 2025
Hiring & Onboarding
Industry standard: 3 months
Both sides
For specific roles
If training provided
Compensation & Benefits
Varies by state & skill
If salary <₹21k/month
At separation
Termination & Separation
Based on role
Except misconduct
For layoffs
Full pay during notice
Philippines
Updated: January 2025
Hiring & Onboarding
Highly recommended
Common practice
Strict enforcement
Compensation & Benefits
Varies by region
After 1 year
Termination & Separation
Plus separation pay
Depends on cause
With consideration
Dominican Republic
Updated: January 2025
Hiring & Onboarding
Within 15 days
Once only
Prohibited
Prohibited
Compensation & Benefits
Large companies
After 1 year
Termination & Separation
Based on tenure
Ministry approval
Employee must give
Honduras
Updated: January 2025
Hiring & Onboarding
Can terminate freely
Verbal valid but risky
At employer cost
Limited hours
Compensation & Benefits
Varies by sector
Based on tenure
Termination & Separation
Based on tenure
Max 25 months
10%+ workforce
Colombia
Updated: January 2025
Hiring & Onboarding
Indefinite, fixed, task
Must be written
Verbal valid for indefinite
Compensation & Benefits
+transport subsidy
If <2x min wage
Termination & Separation
Strict requirements
Common practice
Pre-pensioners, disabled
Ministry approval
Expensive Mistakes to Avoid
❌ Using US-style at-will termination globally
Consequence: Illegal termination lawsuits, massive penalties
✓ Solution: Always follow local termination procedures
❌ Skipping mandatory benefits to save costs
Consequence: Government fines, employee lawsuits, criminal charges
✓ Solution: Budget for all required benefits from day 1
❌ Informal employment agreements
Consequence: Unenforceable contracts, compliance violations
✓ Solution: Always use written contracts in local language
❌ Ignoring notice period requirements
Consequence: Pay penalties equal to notice period
✓ Solution: Honor notice periods or pay in lieu
Key Takeaways
Always Use Written Contracts
Even where verbal contracts are legal, written contracts protect both parties and ensure compliance.
Respect Notice Periods
Unlike the US, most countries require notice periods. Violating them leads to penalties and lawsuits.
Budget for Hidden Costs
13th month pay, profit sharing, severance funds—these aren't optional. Budget 30-50% above base salary.
Get the Complete Employment Law Handbook
200+ pages covering every employment law scenario in all 6 countries. Includes contract templates, termination checklists, and compliance calendars.
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6 Countries
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