COUNTRY

Permanent employment contracts in Chile must be in writing and signed by both parties. Both the employer and employee receive one copy of the contract. The contract must be signed within 15 days iafter hriing. For fixed-term contracts, the deadline to sign is five days to avoid a penalty. The maximum length for a fixed-term contract is 12 months with one renewal. Employers with more than 25 employees must maintain at least 85% Chilean nationals. Employers can conduct background checks on employees or candidates but not related to an individual’s union membership, credit or health status.

The standard working hours in Chile are 45 hours a week, with a maximum of 10 hours a day. Overtime is limited to two hours a day at the rate of 50% over the regular wage. The rest break is at least 30 minutes in a workday. Employees between the ages of 15 and 18 years old may work no more than eight hours a day. Work performed at night is paid at 150% of the standard rate. Employees under the age of 18 and pregnant employees are not allowed to work at night.

Employees are entitled to sick leave in Chile and may be entitled to sick benefits through the social security system. To qualify for paid benefits, employees must have made at least six months of contributions, including at least three months of the last six months. Employees who meet these conditions will receive 100% of their net earnings, paid retroactively to the first day if the illness lasts 11 days or more, or from the fourth day if the illness is less than 11 days.

Female employees receive 18 weeks of maternity leave in Chile with six weeks before childbirth and 12 weeks after delivery. Social security pays 100% of the wages under certain conditions. If during the pregnancy a governmental authority declares a state of emergency due to public calamity, an epidemic or pandemic, the employer must offer the pregnant worker, during the time of the emergency, remote work or telework. If the worker’s functions are not compatible with remote work or telework, the employee must be assigned to tasks that do not require contact with the public or with third parties outside of the workplace. The employee needs to agree and their salary may not be decreased. Male employees are entitled to five days of paternity leave within the first month post-childbirth.

Chile has a minimum wage. Employers in Chile must distribute a portion of profits to employees. The private sector is not required by law to pay the 13th month salary or aguinaldo (December bonus). However, some employers agree to pay this bonus to their employees through individual or collective agreements.

Employees are entitled to 15 days of paid annual leave in Chile after one year of service with full compensation. Employees working in the following regions receive 20 days of annual leave: Duodécima Región de Magallanes y de la Antártica Chilena, en la Undécima Región de Aysén del General Carlos Ibáñez del Campo, and in the Provincia de Palena. After ten years of work for one or more employers, continuous or not, the employee is entitled to one additional day for every three years worked. Employees are entitled to payment of accrued and unused vacation days upon separation of service.

In Chile, the public holidays are:

• New Year's Day

• Good Friday

• Holy Saturday

• Labor Day / May Day

• Navy Day

• National Day of Indigenous Peoples

• Saint Peter and Saint Paul

• Our Lady of Mount Carmel

• Assumption of Mary

• National Day

• Army Day

• Day of the Discovery of Two Worlds

• Reformation Day

• All Saints' Day

• Immaculate Conception Day

• Christmas Day

Chile provides access to healthcare funded through employer and employee contributions. Private health care also is available.

Employment contracts can be terminated in Chile at the end of the agreement (if for a fixed-term), by mutual consent, by the employer or by the employee. Employers may dismiss an employee without providing notice or severance for misconduct. In some situations, written notice and the reason for dismissal must be provided to the employee. Employers may terminate employment based on the economic needs of the company, but are required to provide notice and pay severance upon termination of an employee with at least one year of service. Managers, directors and employees representing the company with power of attorney may be terminated without cause, but notice and severance must be provided. The notice period is 30 days. Employers may provide pay in lieu of notice. Severance is one month of salary for each year of work or a fraction of less than a year, and it is limited to eleven month’s pay.