The employment relationship in Chile is governed principally by the Labor Code, although other statutes such as the Political Constitution of 1980, Decree Law No. 3,500 regarding pensions and Law No. 16,744 regarding labor accidents also apply.
Hours & Pay Regulations
The duration of the ordinary day of work shall not exceed 45 hours weekly. The daily ordinary day shall be continuous and may not exceed 10 hours. Labor Code, art 22.
The Overtime pay rate is 50 percent of the normal hourly wage and must be paid when work exceeds eight hours per day or 45 hours per week and shall be liquidated and paid in conjunction with ordinary remunerations of the respective period. Labor Code, art 32, 40.
The law does not guarantee pay for meal and rest breaks, but a 30-minute break in the workday is required.
The working day will be divided in two parts, leaving between them, at less, the half-hour time for the snack. This intermediate period will not be considered worked to compute the duration of the daily work. Labor Code, art 34.
Sundays will be a holiday. Rest established in this regard will start at the latest at 9 pm the day before Sunday and will end at 6 pm in the day following these, except alterations times that occur due to the rotation in work shifts.
The parties may agree that the working day corresponding to a business day between two holidays, or between a holiday and a day Saturday or Sunday, be it rest, with remuneration. Employees will not be overtime worked as compensation for the agreed rest. Labor Code, art 35-38.
The following 15 paid public holidays are observed in Chile:
- Every Sunday of the Year
- Jan. 1: New Year’s Day
- Good Friday
- Holy Saturday
- May 1: Labor Day
- May 21: Navy Day
- Closest Monday to June 29: Holiday of St. Peter & Paul
- July 16: Holiday of Our Lady of Mount Carmel
- Aug. 15: Holiday of the Assumption of Mary
- Sept. 17-19: National holiday , Army Day and Independence Day
- Closest Monday to Oct. 12: Columbus Day
- Closest Friday to Oct. 31 (unless the date falls on a Thursday): Reformation Day
- Nov. 1: All Saints’ Day
- Dec. 8: Holiday of the Immaculate Conception
- Dec. 25: Christmas
- Dec. 31: bank holiday (typically a shortened workday but not a full holiday in other sectors)
Work performed on public holidays is treated as overtime. The 1st National Labor Day will be a holiday. In each calendar year that September 18 and 19 are holidays. The holidays will be moved to Monday and Tuesday or Thursday and Friday if one of the days falls on Wednesday. Labor Code, Art 35-38.
Employees with more than one year of service will be entitled to an annual holiday of 15 working days, with full remuneration. Every employee, with ten years of work, for one or more employers, continuous or not, will be entitled to an additional day of holiday for every three years worked, and this excess will be susceptible to negotiation individual or collective.
For the purposes of the holiday, Saturday will always be considered non-working. The holiday must be continuous, but the excess in ten business days may be fractioned by common agreement.
During the holiday, the remuneration integral shall be constituted by the salary in the case of employees subject to the system of fixed remuneration. In the case of employees with variable remuneration, full compensation will be the average of what has been earned in the last three months working. Labor Code, art 67-73.
From January 1, 2018, the minimum wage shall be 276,000 Pesos ($447) which are based on a 45-hour workweek for workers 19 to 65 years old. For workers under 18 or over 65 years of age, the minimum monthly wage is 206,041 Pesos.
Female employees will be entitled to a maternity break, six weeks before delivery and twelve weeks after delivery. If the birth occurs after six weeks after the date on which the woman had begun the maternity leave, the Prenatal rest will be extended until the delivery. In the case of deliveries of two or more children, the postnatal rest period shall be increased in seven consecutive days for each child born after the second.
The employees will have right to have, at least, one hour a day, to feed their children under two years. Labor Code, art 195-208.
The father will be entitled to a paid leave of five days in the event of the birth of a child, which may be used at his choice from the moment of delivery, and in this case will be continuously, excluding the weekly rest, or distributed within the first month from the date of birth. This permission will also be granted to the father who is in the process of adoption and will be counted from the notification of the resolution granting personal care or foster the adoption of the child. Labor Code, art 199.
When the health of a child older than one year and under eighteen years of age requires the personal care of his or her father or mother in the event of a serious accident or of a serious, acute and life-threatening illness, both the father and mother shall have the right to a leave of absence from her work for the number of hours equivalent to 10 working days per year, distributed at the employee’s choice in full, partial or combined days. Labor Code, art 199.
There is no annual limit on the number of days of sick leave that an employee can take, this will depend on the medical licence extended by the doctor. Supreme Decree No. 44 of 1978.
In the case of women or single men or widowers who manifest to the court their willingness to adopt a child, the term of one year established shall be counted as adoption leave from the date on which the judge, by means of a resolution issued to that effect, entrust these employees with the personal care of the minor or grant him the tuition. Labor Code, art 201.
In In the event of contracting a marriage or entering into a civil union agreement, every employee shall be entitled to 5 continuous working days of paid leave, in addition to the annual holiday, regardless of the time of service. Labor Code, art 207.
Employees are entitled to seven calendar days of paid bereavement leave from the date of death of a child or spouse. This is in addition to annual leave and may be taken regardless of time worked. In the case of the death of a parent, the employee is entitled to three business days’ leave from the date of death. If an unborn child dies, any worker (male or female) is entitled to three business days’ leave from the date when death is confirmed with the appropriate fetal death certificate. There is one-month tenure protection for employees who suffer the death of a child or spouse beginning from the date of death.
Female employees over 40 years and male employees over 50 years are entitled to a half working day once a year of paid leave to have a mammography or prostate examination.
Employees’ jobs are guaranteed without loss of seniority if they are called to military service or training. Employers are required to pay regular wages to reserve personnel called to service for less than 30 days. Labour Code, art 66.
Last updated on: August 27th, 2019