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Countries › Chile › Guide › 7. Labor and employment › Employing people in Chile: contracts, working hours, minimum wage, social security, dismissal and severance, unions and outsourcing

Employing people in Chile: contracts, working hours, minimum wage, social security, dismissal and severance, unions and outsourcing

Last verified: 2026-10-26 · Status: Changing

Every employee in Chile needs a written contract within 15 days of starting, the maximum ordinary week is 42 hours since 26 April 2026 and falls to 40 hours on 26 April 2028, and the minimum monthly wage is CLP 553,553 from 1 May 2026 (Ley Nº 21.830). On top of salary the employer pays a legal profit share, unemployment and work accident insurance and a new employer pension contribution of 3.5 percent since August 2026 that rises in steps to 8.5 percent under the 2025 pension reform. Employees can be dismissed for business needs with 30 days notice or pay in lieu plus one month of pay per year of service, capped at 11 years and a 90 UF monthly base, and courts add 30 to 100 percent when a dismissal is found unjustified.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (Ley Nº 18.840 art. 44). UF amounts use the SII value of CLP 41,057.20 for 30 September 2026 and UTM amounts the SII value of CLP 72,151 for October 2026. Conversions are for orientation only.

Key facts

Minimum monthly income, workers over 18 and up to 65, from 1 May 2026553553 CLPLey Nº 21.830 art. 1, as of 2026-10-26 · in force
Minimum monthly income in US dollars at CLP 986.58 per US dollar (23 October 2026)561.08 USDLey Nº 21.830 art. 1, as of 2026-10-26 · in force
Minimum monthly income, workers under 18 or over 65, from 1 May 2026412938 CLPLey Nº 21.830 art. 2, as of 2026-10-26 · in force
Maximum ordinary working week since 26 April 202642 hoursCódigo del Trabajo art. 22; Ley Nº 21.561, as of 2026-10-26 · in force
Maximum ordinary working week from 26 April 202840 hoursCódigo del Trabajo art. 22; Ley Nº 21.561, as of 2026-10-26 · pending
Overtime surcharge over ordinary pay50 %Código del Trabajo art. 32, as of 2026-10-26 · in force
Paid annual leave after one year of service (20 in Magallanes, Aysén and Palena)15 working daysCódigo del Trabajo art. 67, as of 2026-10-26 · in force
Deadline to put the employment contract in writing15 daysCódigo del Trabajo art. 9, as of 2026-10-26 · in force
Maximum fixed term contract (24 months for managers and degree holders)12 monthsCódigo del Trabajo art. 159 Nº 4, as of 2026-10-26 · in force
Notice for dismissal for company needs, or one month of pay in lieu30 daysCódigo del Trabajo art. 161 and art. 162, as of 2026-10-26 · in force
Statutory severance per year of service30 days of payCódigo del Trabajo art. 163, as of 2026-10-26 · in force
Cap on years counted for statutory severance (330 days)11 yearsCódigo del Trabajo art. 163, as of 2026-10-26 · in force
Cap on the monthly pay base for severance and notice pay90 UFCódigo del Trabajo art. 172, as of 2026-10-26 · in force
Deadline to sue for unjustified dismissal60 working daysCódigo del Trabajo art. 168, as of 2026-10-26 · in force
Annual cap on the legal gratificación per worker under art. 504.75 minimum monthly incomesCódigo del Trabajo art. 50, as of 2026-10-26 · in force
Employee pension contribution to individual account, plus AFP commission10 %DL 3.500 art. 17, as of 2026-10-26 · in force
Employer pension contribution since 1 August 20263.5 %Ley Nº 21.735 fourth transitory article letter b), as of 2026-10-26 · in force
Employer pension contribution at end of phase in (from August 2033 on the base schedule)8.5 %Ley Nº 21.735 art. 1 and fourth transitory article letter i), as of 2026-10-26 · pending
Employer unemployment insurance contribution, indefinite contracts (3 percent for fixed term)2.4 %Ley Nº 19.728 art. 5, as of 2026-10-26 · in force
Employee unemployment insurance contribution, indefinite contracts0.6 %Ley Nº 19.728 art. 5, as of 2026-10-26 · in force
Basic employer work accident insurance contribution (plus additional risk rate up to 3.4 percent)0.9 %Ley Nº 16.744 art. 15, as of 2026-10-26 · in force
Monthly taxable pay cap for pension, health and work accident contributions, 202690.0 UFDL 3.500; Superintendencia de Pensiones 2026 caps, as of 2026-10-26 · in force
Monthly taxable pay cap for unemployment insurance, 2026135.2 UFLey Nº 19.728 art. 6; Superintendencia de Pensiones 2026 caps, as of 2026-10-26 · in force
Minimum share of Chilean national workers for employers with more than 25 workers85 %Código del Trabajo art. 19 and art. 20, as of 2026-10-26 · in force

The rule

1. An employment contract exists whenever a person provides personal services under the employer's dependence and subordination in exchange for pay, whatever the parties call it. The contract is consensual but must be put in writing and signed in two copies within 15 days of the worker starting, or within 5 days for contracts for a specific job or lasting under 30 days. It must state at least the place and date, the parties with nationality, domicile and email address, the worker's date of birth and start date, the nature and place of the services, pay amount, form and period, the length and distribution of the working day, the contract term and any other agreed terms. If the employer fails to put it in writing on time, the terms declared by the worker are legally presumed to be the contract terms. A copy of the contract and of any termination settlement must be kept at the workplace unless the Dirección del Trabajo authorises centralised digital records.
Cost to do it: No filing fee. Failing to put the contract in writing on time is fined 1 to 5 UTM, CLP 72,151 to CLP 360,755 at the October 2026 UTM.
Example: A late written contract can cost a fine of CLP 72,151 to CLP 360,755 per worker. / About US$73 to US$366 per worker.DFL Nº 1 of 2002, Ministerio del Trabajo, Código del Trabajo, Art. 7, art. 9 and art. 10, 2003-01-16 official text · verified 2026-10-26
2. Contracts are indefinite by default. A fixed term contract may not exceed one year, or two years for managers and holders of a professional or technical degree from a recognised higher education institution. It becomes indefinite if the worker keeps working with the employer's knowledge after the term expires or on its second renewal, and a worker who has served discontinuously under more than two fixed term contracts for 12 months or more within 15 months from the first hiring is legally presumed to be employed indefinitely. Contracts for a specific job or service end when that job ends.
Cost to do it: Fixed term and specific job contracts carry a higher employer unemployment insurance rate of 3 percent instead of 2.4 percent (Ley Nº 19.728 art. 5).DFL Nº 1 of 2002, Código del Trabajo, Art. 159 Nº 4 and Nº 5, 2003-01-16 official text · verified 2026-10-26
3. The maximum ordinary working week is being cut from 45 to 40 hours by Ley Nº 21.561: 44 hours from 26 April 2024, 42 hours from 26 April 2026 and 40 hours from 26 April 2028. Hours can be spread per calendar week or as an average over periods of up to four weeks. Managers, administrators, attorneys in fact with management powers and others working without immediate supervision are excluded from the limit. Overtime may only be agreed in writing for temporary needs, for up to three months at a time, and is paid with a 50 percent surcharge over the agreed salary for ordinary hours; the parties may agree in writing to compensate it with up to five extra working days of leave per year at one and a half hours of leave per overtime hour. The Dirección del Trabajo has ruled that, absent agreement, the cut from 44 to 42 hours is applied by shortening the end of the working day, and that the reduction cannot lower pay.
Cost to do it: Same pay for fewer hours: the step from 44 to 42 hours raises the cost per hour worked by about 4.8 percent, and the step to 40 hours by a further 5 percent.
Example: An employee on CLP 1,500,000 a month whose hourly overtime base works out at CLP 8,000 earns CLP 12,000 for each overtime hour. / On a US$1,520 monthly salary with an hourly base of about US$8.11, each overtime hour costs about US$12.16.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 21.561, Art. 22 and its note on gradual implementation; art. 32, 2023-04-26 official text · verified 2026-10-26 · changed: The 42 hour limit took effect on 26 April 2026 under Ley Nº 21.561 (Diario Oficial 26 April 2023), replacing the 44 hour limit in force since 26 April 2024; the Dirección del Trabajo set the default implementation rule in Dictamen ORD. Nº 253/21 of 16 April 2026. The next and final step to 40 hours takes effect on 26 April 2028.
4. The monthly base salary may not be below the minimum monthly income, prorated for part time work. From 1 May 2026 the minimum is CLP 553,553 for workers aged over 18 and up to 65, and CLP 412,938 for workers under 18 or over 65. From 1 January 2027 the general minimum will be indexed to consumer price inflation measured between 1 May and 31 December 2026, and the government must send a new adjustment bill by June 2027 to apply from 1 July 2027. The increase applied retroactively to May 2026 pay.
Cost to do it: Wage floor for each full time employee aged over 18 and up to 65.
Example: CLP 553,553 a month, or CLP 6,642,636 a year before the legal profit share. / About US$561 a month, or about US$6,733 a year.Ley Nº 21.830; DFL Nº 1 of 2002, Código del Trabajo, Ley Nº 21.830 art. 1, art. 2 and art. 7; Código del Trabajo art. 44, 2026-06-22 official text · verified 2026-10-26 · changed: Ley Nº 21.830 (Diario Oficial 22 June 2026) raised the general minimum to CLP 553,553 from 1 May 2026, up from CLP 539,000 set from 1 January 2026 by Ley Nº 21.751 (Diario Oficial 28 June 2025), and provides an inflation adjustment from 1 January 2027.
5. Profit making businesses that keep accounting books must share profits with employees through the legal gratificación. The employer can either distribute at least 30 percent of the year's net profit in proportion to each worker's pay (art. 47), or pay each worker 25 percent of their monthly pay for the year, capped at 4.75 minimum monthly incomes per worker, regardless of profit (art. 50). Most employers use the art. 50 option and pay it monthly. The gratificación is part of remuneration and therefore bears social security contributions.
Cost to do it: Under art. 50, at most 4.75 minimum monthly incomes per worker a year: CLP 2,629,376.75 at the minimum in force from 1 May 2026, or about CLP 219,115 a month.
Example: A worker on CLP 1,500,000 a month would get 25 percent, CLP 375,000, but the cap limits the gratificación to about CLP 219,115 a month. / Cap of about US$2,665 a year, or about US$222 a month, per worker.DFL Nº 1 of 2002, Código del Trabajo, Art. 42 letter e), art. 47 and art. 50, 2003-01-16 official text · verified 2026-10-26
6. Workers with more than one year of service are entitled to 15 working days of paid annual leave, or 20 working days in the regions of Magallanes and Aysén and in the Province of Palena. Leave is granted preferably in spring or summer. Workers with the personal care of a child under 14, or of an adolescent under 18 with a disability or severe dependency, have preference for leave during school holidays.
Cost to do it: Three working weeks of paid leave a year per worker, plus proportional leave paid out on termination.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 21.645, Art. 67, 2023-12-29 official text · verified 2026-10-26
7. Employees affiliated to the pension system pay 10 percent of taxable pay into their individual account plus their pension fund manager's (AFP) commission, withheld by the employer. Ley Nº 21.735 adds an employer pension contribution that reaches 8.5 percent of taxable pay, phased in from the first day of the fifth month after publication: 1 percent from August 2025, 3.5 percent from August 2026, 4.25 percent from August 2027 and 5 percent from August 2028, rising by 0.7 points a year to 8.5 percent from August 2033. If the external review of the revenue effect of Ley Nº 21.713 shows lower than expected collection that is not offset, the steps from August 2029 onward are slower and the 8.5 percent rate is reached only in August 2035, as declared by a Ministry of Finance decree. Contributions are calculated on taxable pay up to a monthly cap, which the Superintendencia de Pensiones set at 90.0 UF for pensions, health and work accident insurance for 2026, from contributions on February 2026 pay.
Cost to do it: Employer pension contribution of 3.5 percent of taxable pay since August 2026, on pay up to the 90 UF cap (about CLP 3,695,148 a month at the 30 September 2026 UF).
Example: On taxable pay of CLP 1,719,115 a month the employer pays CLP 60,169 of pension contribution and withholds CLP 171,912 (10 percent) from the employee, plus the AFP commission. / On about US$1,742 of monthly taxable pay: about US$61 employer contribution and US$174 withheld from the employee.Ley Nº 21.735; Decreto Ley Nº 3.500 of 1980, Ley Nº 21.735 art. 1 and fourth transitory article; DL 3.500 art. 17, 2025-03-26 official text · verified 2026-10-26 · changed: Under the fourth transitory article of Ley Nº 21.735 (Diario Oficial 26 March 2025) the employer pension contribution rose from 1 percent to 3.5 percent of taxable pay on 1 August 2026; the next step, to 4.25 percent, is due on 1 August 2027.
8. Unemployment insurance (seguro de cesantía) is funded by the employee with 0.6 percent of taxable pay on indefinite contracts, and by the employer with 2.4 percent on indefinite contracts or 3 percent on fixed term or specific job contracts, on pay up to a separate cap that is indexed every year; for 2026 the Superintendencia de Pensiones set it at 135.2 UF. Work accident and occupational disease insurance is paid entirely by the employer: a basic 0.90 percent of taxable pay plus an additional rate set by activity and risk that may not exceed 3.4 percent.
Cost to do it: Employer: 2.4 or 3 percent unemployment insurance plus 0.90 percent basic accident insurance and the additional risk rate of up to 3.4 percent.
Example: On taxable pay of CLP 1,719,115 a month on an indefinite contract: CLP 41,259 of employer unemployment insurance, CLP 15,472 of basic accident insurance and CLP 10,315 withheld from the employee. / About US$42 and US$16 for the employer and US$10 for the employee.Ley Nº 19.728; Ley Nº 16.744, Ley Nº 19.728 art. 5 and art. 6; Ley Nº 16.744 art. 15, 2001-05-14 official text · verified 2026-10-26
9. Besides causes attributable to the worker (art. 160) and neutral causes such as mutual agreement, resignation with 30 days notice or expiry of the term (art. 159), the employer can dismiss for the needs of the company, such as restructuring, lower productivity or changed market conditions (art. 161), but not while the worker is on medical leave. Managers and others with general powers of administration, and positions of exclusive trust, can also be dismissed by written notice without cause. The employer must give 30 days written notice with a copy to the Labour Inspectorate, or pay one month of pay in lieu, and the letter must state the total amount to be paid. Dismissals for other causes must be notified in writing with the cause and facts within three working days. Before dismissing, the employer must report in writing the status of pension contributions up to the previous month with proof of payment; if contributions are unpaid, the dismissal does not end the contract.
Cost to do it: One month of pay in lieu of notice, on a base capped at 90 UF (about CLP 3,695,148 or US$3,745 at the 30 September 2026 UF). Unpaid contributions keep pay running until they are settled.DFL Nº 1 of 2002, Código del Trabajo, Art. 159, art. 160, art. 161 and art. 162, 2003-01-16 official text · verified 2026-10-26
10. When an employer ends a contract of one year or more for company needs or by notice under art. 161, it must pay severance (indemnización por años de servicio) of 30 days of the last monthly pay for each year of service and fraction above six months, capped at 330 days, that is 11 years, unless a higher amount was agreed. The monthly base includes all regular pay but excludes overtime and sporadic or once a year payments, and may not exceed 90 UF of the last day of the month before payment. The employer's share of contributions to the worker's individual unemployment account, with its returns, is deducted from this severance. A worker who considers the dismissal unjustified can sue within 60 working days; the court then orders the notice pay and severance increased by 30 percent if art. 161 was improperly applied, 50 percent if an art. 159 cause was unjustified or no cause was given, 80 percent if an art. 160 cause was improperly applied, and 100 percent for certain art. 160 causes found to lack plausible grounds.
Cost to do it: Up to 11 months of pay capped at 90 UF a month, about CLP 40,646,628 or US$41,200 at the 30 September 2026 UF, plus notice pay and accrued leave, less the employer funded unemployment account balance.
Example: Dismissal for company needs after 7 years and 8 months on CLP 3,000,000 a month: 8 years of severance, CLP 24,000,000, plus CLP 3,000,000 in lieu of notice, CLP 27,000,000 before the unemployment account offset. If a court finds art. 161 was improperly applied, the severance rises by 30 percent, CLP 7,200,000 more. / About US$24,326 of severance plus US$3,041 in lieu of notice, US$27,367 in total, and about US$7,298 more if the dismissal is found improper.DFL Nº 1 of 2002, Código del Trabajo; Ley Nº 19.728, Código del Trabajo art. 163, art. 168 and art. 172; Ley Nº 19.728 art. 13, 2003-01-16 official text · verified 2026-10-26
11. Every termination settlement (finiquito), resignation and mutual agreement must be in writing and, to be relied on by the employer, signed by the worker and ratified before a Labour Inspector or another authorised witness such as a notary, or signed by the union president or delegate; a settlement issued and signed electronically on the Dirección del Trabajo website counts as ratified. The employer must issue the settlement and make the payment available within 10 working days of separation; payment in instalments can be agreed.
Cost to do it: Free when signed on the Dirección del Trabajo website; notary fees apply otherwise.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 21.361, Art. 177, 2021-07-27 official text · verified 2026-10-26
12. At least 85 percent of the workers of a single employer must be Chilean nationals, except for employers with no more than 25 workers. The count is of all workers in Chile, not per branch; specialised technical staff are excluded, and foreigners with a Chilean spouse, civil partner or children, widows or widowers of a Chilean spouse, and foreigners resident in Chile for more than five years count as Chileans.
Cost to do it: No fee; it limits how many foreign staff a company with more than 25 workers can hire outside the exceptions.DFL Nº 1 of 2002, Código del Trabajo, Art. 19 and art. 20, 2003-01-16 official text · verified 2026-10-26
13. A company that contracts out works or services performed with the contractor's own staff on its premises is jointly and severally liable for the contractor's labour and social security payment obligations to those workers, including legal severance, for the time they worked for it. Liability drops to subsidiary if the principal exercises its right to be informed of the contractor's compliance, through Labour Inspectorate certificates or other reliable means, and its right to withhold payments to the contractor. If the arrangement is mere supply of workers, the principal is deemed to be the employer. Separately, two or more companies with common labour management and conditions such as complementary products or a common controller are treated as a single employer, although shared ownership alone is not enough.
Cost to do it: Cost of collecting compliance certificates from each contractor every month; without them the principal bears joint liability for the contractor's unpaid wages, contributions and severance.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 20.123 and Ley Nº 20.760, Art. 183-A, art. 183-B, art. 183-C, art. 183-D and art. 3, 2006-10-16 official text · verified 2026-10-26
14. In a company with more than 50 workers, a company union needs at least 25 workers representing at least 10 percent of the workforce; where no union exists, 8 workers can form one but must reach that quorum within one year. In companies with 50 workers or fewer, 8 workers representing at least half the workforce can form a union. Strikes must be exercised collectively, and replacing striking workers is prohibited: it is a serious unfair practice that lets the Labour Inspectorate demand the immediate withdrawal of replacements and take the employer to the labour court.
Cost to do it: No fee; contingency planning for strikes cannot rely on hiring replacements.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 20.940, Art. 227 and art. 345, 2016-09-08 official text · verified 2026-10-26
15. Workers have the right to have the employer prevent, investigate and sanction sexual harassment, workplace harassment and violence at work. Every employer must prepare and make available a prevention protocol through its work accident insurance administrator, identifying psychosocial risks with a gender perspective and setting measurable prevention, information, training and privacy measures.
Cost to do it: Internal and advisory time to prepare the protocol; the accident insurance administrators provide support to their affiliated employers.DFL Nº 1 of 2002, Código del Trabajo, as amended by Ley Nº 21.643, Art. 211-A, 2024-01-15 official text · verified 2026-10-26
ItemRateCLPUSDRule
Base salary1,500,0001,520.40Contract; Código del Trabajo art. 44
Legal gratificación, art. 50 option, capped25 percent of pay up to 4.75 minimum incomes a year219,115222.10Código del Trabajo art. 50
Taxable pay1,719,1151,742.50Código del Trabajo art. 41 and 42
Employer pension contribution3.5 percent60,16960.99Ley Nº 21.735 fourth transitory article
Employer unemployment insurance2.4 percent41,25941.82Ley Nº 19.728 art. 5
Basic work accident insurance0.90 percent15,47215.68Ley Nº 16.744 art. 15
Total employer cost before the excluded items1,836,0151,860.99
Withheld from the employee: pension10 percent plus AFP commission171,912174.25DL 3.500 art. 17
Withheld from the employee: unemployment insurance0.6 percent10,31510.46Ley Nº 19.728 art. 5

Monthly employer cost of one worker on an indefinite contract with a base salary of CLP 1,500,000, from August 2026 (excludes the additional accident risk rate, the disability and survivor insurance premium, health insurance withheld from the employee and income tax withholding).

DateChangeRule
1 January 2027Minimum wage indexed to inflation from May to December 2026Ley Nº 21.830 art. 1
1 August 2027Employer pension contribution to 4.25 percentLey Nº 21.735 fourth transitory article letter c)
1 August 2028Employer pension contribution to 5 percentLey Nº 21.735 fourth transitory article letter d)
26 April 2028Maximum week to 40 hoursCódigo del Trabajo art. 22; Ley Nº 21.561
August 2029 to August 2033Employer pension contribution rises 0.7 points a year to 8.5 percent, unless the slower alternative schedule, reaching 8.5 percent in August 2035, is triggeredLey Nº 21.735 fourth transitory article letters e) to i)

Scheduled changes that raise labour cost (base schedules set by law).

Worked example

  • A foreign owned SpA hires an engineer in Santiago on an indefinite contract at a base salary of CLP 1,500,000 (about US$1,520) a month in November 2026. The written contract must be signed within 15 days of the start date (Código del Trabajo art. 9).
  • The company pays the gratificación monthly under art. 50, capped at about CLP 219,115, so taxable pay is CLP 1,719,115. On that it pays 3.5 percent pension, 2.4 percent unemployment insurance and 0.90 percent basic accident insurance, CLP 116,900 in total, for a monthly cost of about CLP 1,836,015 (about US$1,861) before the additional accident risk rate and the disability and survivor insurance premium.
  • Seven years and eight months later the company restructures and dismisses the engineer for company needs, now earning CLP 3,000,000 a month. It gives notice in writing with a copy to the Labour Inspectorate and pays CLP 3,000,000 in lieu of notice and eight years of severance, CLP 24,000,000 (about US$27,367 in total), less the employer funded balance of the engineer's unemployment account, after proving that pension contributions are paid up to date. The settlement is signed electronically on the Dirección del Trabajo website and paid within 10 working days (art. 161, 162, 163, 177; Ley Nº 19.728 art. 13).
  • Had the engineer earned CLP 6,000,000, the base would be capped at 90 UF, about CLP 3,695,148, so severance would be about CLP 29,561,184 (about US$29,963) instead of CLP 48,000,000 (art. 172).

Step by step

  1. Before the first hire, the company needs its RUT and start of activities with the SII (see Start here) and must affiliate with a work accident insurance administrator under Ley Nº 16.744.
  2. Day 1 to day 15: sign the written contract with the minimum contents of art. 10 and register the worker for pension, health and unemployment insurance contributions.
  3. Prepare internal rules and the harassment prevention protocol required by art. 211-A before staff start.
  4. Every month: pay salaries at or above the minimum wage, pay the gratificación if using the monthly art. 50 option, and declare and pay social security contributions on taxable pay up to the 2026 caps of 90.0 UF and 135.2 UF.
  5. Every month, if you use contractors on site: request compliance certificates from each contractor and withhold payment if they do not prove compliance, to limit liability to subsidiary (art. 183-C and 183-D).
  6. Track scheduled changes: the employer pension contribution steps each August, the minimum wage indexation on 1 January 2027 and the 40 hour week on 26 April 2028.
  7. On dismissal: check that all contributions are paid, give written notice with the cause and amounts (30 days for company needs, or pay in lieu), send a copy to the Labour Inspectorate, and issue and pay the settlement within 10 working days.

Common traps

  • Calling a worker a contractor does not change the law: if services are personal and under subordination, art. 7 treats it as employment, with contributions, leave and severance owed.
  • Unpaid pension contributions make a dismissal ineffective under art. 162, so pay keeps accruing until the employer settles the contributions and notifies the worker.
  • A second renewal of a fixed term contract, or continuing to work after it expires, turns it into an indefinite contract with full severance rights.
  • The art. 50 gratificación is often forgotten in budgets; it adds up to about CLP 219,115 a month per worker and bears social security contributions.
  • Employer pension cost is rising every August under Ley Nº 21.735; multi year budgets should use the scheduled rate for each year, not today's 3.5 percent.
  • The 42 hour week applies to existing contracts without a pay cut; schedules agreed for the 44 hour stage cannot be changed unilaterally, and the default rule shortens the end of the working day.
  • Unjustified dismissal surcharges of 30 to 100 percent apply on top of severance, and the 60 working day claim period is suspended while a complaint is pending before the Labour Inspectorate.
  • Using contractors without collecting compliance certificates leaves the principal jointly liable for their workers' unpaid wages, contributions and severance; pure labour supply makes the principal the employer.
  • Group companies with common labour management can be treated as a single employer under art. 3, which matters for union and collective bargaining rights.
  • Expatriate staff, including those transferred from Argentina or other neighbouring countries, count against the 85 percent Chilean worker rule once the employer has more than 25 workers, unless they are specialised technical staff or meet the family or five year residence exceptions of art. 20. Argentine side employment and social security rules are covered by The Argentine Thread.
  • Strikes cannot be broken by hiring replacements: art. 345 makes it a serious unfair practice.

Sources

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