There is no distinction between blue-collar and white-collar workers in Chile.

Although an employment contract may be deemed to exist without a written agreement, the employment statute requires that contracts must be in writing. Employment contracts must be signed by both the employer and the employee.

An employer must ensure that there is a written agreement in place within 15 days counted from the date on which the employee starts working (five days in the case of contracts with a term of less than 30 days). The agreement should be registered at the Labour Bureau website within 15 days, or the employer will face a fine. Absence of a written employment agreement will result in a fine and a presumption in favour of the employee: the terms of the employment contract will be understood to be those indicated by the employee (unless the employer can prove otherwise).

Employment contracts must contain the following statutory provisions:

• place and date of the contract;
• identification of the parties, including nationality, address, email, and the worker’s date of birth and date of employment;
• description of the nature of the services and the location or city where they are to be performed – the contract may specify two or more specific duties, whether alternative or supplementary;
• amount, method and frequency of payment of the agreed remuneration;
• duration and distribution of the working hours, except in the case of shift systems, in which case working hours must be regulated in the internal regulations;
• term of the contract;
• any other agreements between the parties (eg, other monetary benefits);
• additional benefits provided by the employer, such as housing, electricity, fuel, food, or other in-kind benefits or services; and
• when a worker is required to change residence for employment, the place of origin must be recorded.

The employer must retain a physical (hard) copy of all employment-related documentation for each employee. The retention period shall correspond to the statutory limitation period applicable to employment-related claims.

Open-ended employment contracts are the general rule, although fixed-term contracts and contracts to perform a particular task or service (that is, task- or project-based contracts) are permitted. All employment contracts must state their term and, unless the contract is explicitly for a fixed term or to perform a particular task or service, the term is considered to be open-ended.

For most employees, the duration of a fixed-term contract must not exceed one year. A fixed-term contract may be renewed once, but the total duration, including the renewal, must not exceed one year. In the case of managers and employees with a professional or technical qualification from a higher-education institution, a fixed-term contract may have a duration of up to two years. Again, one renewal is permitted but the total duration, including that of the renewal, must not exceed of two years.

If an employee works non-continuously for the same employer under more than one fixed-term contract for a period of 12 months or more within a 15-month period (starting at the beginning of the first contract), the employee is considered to have an open-ended contract with the employer. An employee on a fixed-term contract is also considered to have an open-ended contract with the employer if: (i) the employee continues to work for the employer (with the employer’s knowledge) after the end of the term of the fixed-term contract; or (ii) the contract is renewed more than once.

The general rule is that the statutory maximum working hours per week is currently 44 hours, which may be distributed over no more than six days and no fewer than five days, with a daily limit of ten working hours. Employers are required to maintain a system for recording each employee’s working hours.

These limitations shall not apply to:

• managers, administrators and legal representatives vested with managerial authority;
• individuals who, due to the nature of their duties, perform their work without immediate supervision; and
• employees engaged in work on board fishing vessels.

Such employees are not required to sign the daily attendance registry, and their exemption must be expressly stipulated in their employment contracts. Moreover, the 44-hour weekly limit may be extended under specific and exceptional circumstances provided for by law, and additional shifts may be authorised for roles which, due to their nature, must operate on a continuous basis.

Only employees subject to a working schedule are entitled to overtime payments. An employee will have worked overtime if their worked hours during a week exceed the agreed working hours or the legal maximum hours per week, whichever is lower. Overtime hours must be paid with a 50% surcharge together with the employee’s salary.

As of April 2024, maximum working hours will be gradually reduced until reaching a maximum of 40 hours per week by the year 2028. The new work schedule allows the distribution of the weekly maximum over four days, compensation of overtime with periods of rest and the distribution of the monthly work schedule in weekly averages of 40 hours, among other alternatives.

Part-time employment contracts are those in which the employee works no more than 30 hours per week. Part-time employment contracts are subject to the general rules set forth in the Labour Code, except in respect of Minimum Monthly Income (to be calculated proportionally, as it is based on a standard workweek), Statutory Profit Sharing (the maximum cap of 4.75 times the monthly minimum wage may be reduced proportionally according to the ratio between the hours agreed in the part-time contract and those of a full-time ordinary workweek) and severance per years of service (a special method is used to calculate this indemnity).

Working mothers and fathers of children up to 12 years of age, as well as those who have the personal care of such children, shall be entitled, in so far as their duties allow, to a flexible daily period of two hours in total, within which they may advance or delay the start of their work by up to one hour, thereby also determining the end-of-day departure time.

Special rules apply to some aspects of the working time of employees in specific sectors such as retail, hotels and restaurants, public transport and fishing. Additionally, special distribution systems may be authorised depending on the specific characteristics of the worksite.

The following employee compensations are prescribed by law.

• Monthly minimum wage – There is a statutory national minimum income, which is set as a monthly amount depending on the employee’s age, that increases by law generally once or twice a year.
1. As of 1 May 2025, the monthly minimum wage for employees over 18 and up to 65 years of age is set at CLP529,000. As of 1 January 2026, the monthly minimum wage for the aforementioned employees will increase to CLP539,000. The statutory minimum wage is not applicable to apprentices.
2. As of the same date (1 May 2025), the minimum wage for workers under 18 or over 65 years of age is CLP394,622. As of 1 January 2026, the monthly minimum wage for said workers will rise to CLP402,082.
3. As of 1 May 2025, the minimum income for non-remuneration purposes is set at CLP340,988. As of 1 January 2026, this minimum income will increase to CLP347,434. There are two main rates, depending on the employee’s age.
4. Employees subject to a full-time work schedule shall have a monthly base salary that must be at least equal to the relevant statutory minimum wage. Part-time employees must be paid at least the corresponding statutory minimum wage, calculated in proportion to their working hours. Employees that are not subject to a work schedule are entitled to a total monthly remuneration at least equal to the minimum wage.
• “Full Week Payment” (Semana Corrida) – Employees who receive variable remuneration accrued on a daily basis, are entitled to receive “full week payment” consisting of the payment of remuneration for the Sundays and holidays not worked during the same week based on the average of daily variable remuneration accrued for the said week. Additionally, when an employee receives base salary and variable monthly remuneration, they are entitled to receive a “full week payment” consisting of a payment of variable remuneration corresponding to Sundays and holidays not worked based on the average of the variable remuneration accrued during the corresponding week.
• Profit-sharing – Part of the company’s profits should be distributed by the company among its employees. There are three alternatives to comply with this legal obligation.
1. Statutory profit-sharing (Article 47 of the Labour Code) – By distributing once each fiscal year among its employees at least 30% of the net profits earned by the employer during that particular year in proportion to their corresponding remunerations.
2. Statutory alternative of Article 50 of the Labour Code – By paying to each employee annually an amount equivalent to 25% of the monthly remuneration accrued during the fiscal year with a limit of 4.75 monthly minimum wages.
3. Conventional profit-sharing – By agreeing with the employees another profit-sharing payment equal or higher than those detailed above.
• Moving to other places – Should the employee change their residency because of the employment contract, the employer must pay reasonable relocation costs.
• Homework expenses – The employer must pay the employee the necessary expenses in the case of homework, including travel expenses when the employee is required to be physically present at the employer’s facilities.
• In Chile, there are no mandatory wage adjustments or entitlement to a 13th salary.

Annual Leave

According to the Labour Code, employees who have completed one year of service with an employer are entitled to 15 working days of fully paid annual vacation. Saturdays, Sundays and public holidays are excluded from the count of working days for these purposes. Employees who work in the southernmost regions of the country are entitled to 20 working days of annual vacation.

Annual leave must generally be taken as a continuous period; however, any vacation days exceeding ten may be split, provided there is mutual agreement between the employer and the employee.

Additionally, employees who have accumulated ten or more years of service – whether with a single employer or across multiple employers – are entitled to one extra vacation day for every additional three years of service beyond the initial ten. For the purpose of determining extra vacation days, only up to ten years of service with previous employers shall be considered.

Other Statutory Special Leave

Other statutory special leaves include the following.

Sick leave

Sick leave must be supported by a medical certificate and promptly communicated to the employer. During such leave, the employee’s wage is covered by their corresponding health insurance provider, subject to a statutory monthly cap. In cases of ordinary (non-occupational) illness, there is no annual limit on the number of sick leave days an employee may take.

Parental and family leaves

Employees who give birth are entitled to fully paid maternity leave funded by their health insurance for a period of six weeks preceding the birth (prenatal leave) and 12 weeks following the birth (postnatal leave). Upon the conclusion of postnatal leave, employees may opt for an additional paid parental leave period of either 12 weeks or 18 weeks, contingent, in the latter case, on a return to work on a part-time basis (half-day schedule).

Employees whose spouse or significant other gives birth shall be entitled to five calendar days of paid paternity leave in the event of the birth or adoption of a child.

Employees are further entitled to five consecutive working days of paid leave on the occasion of their marriage or entry into a civil union.

Employees who are breastfeeding or otherwise caring for children under two years of age are entitled to a minimum of one hour of paid leave per working day for such purposes.

Bereavement leaves

In the event of the death of an employee’s child, the employee shall be entitled to ten calendar days of paid leave. On the death of an employee’s spouse or civil partner, the employee shall be entitled to seven calendar days of paid leave. In the event of the death of a child during gestation, the employee shall be entitled to seven business days of paid leave. On the death of the employee’s father, mother or siblings, the employee shall be entitled to three business days of paid leave.

Health-related leaves

Where an employee’s child under one year of age suffers from a medical condition, the employee shall be entitled to paid leave for a duration deemed medically necessary, as determined by a physician, with payment covered by the employee’s health insurance.

Employees shall be entitled to paid leave equivalent to ten ordinary working days per calendar year, to be utilised in the following circumstances, with the obligation to compensate for the time off at a later date without additional remuneration.

• In the event of a serious accident, or acute and life-threatening illness affecting a child who is older than one year and younger than 18 years of age.
• Where the employee’s spouse, civil partner, father or mother is suffering from a serious or terminal illness.
• Where the employee provides personal care to:
1. a minor with a disability registered in the National Register of Disabilities or under six years of age; or
2. an adult over the age of 18 who has an intellectual disability, mental illness or a combination thereof, and who is highly dependent on the employee.

Employees are further entitled to the following paid (subsidised) leaves.

• Up to 15 days to care for a child with a serious medical condition requiring hospitalisation.
• Up to 180 days per calendar year to care for a child diagnosed with cancer. In the subsequent year, the maximum leave period shall be up to 90 days.
• Up to 180 days to care for a child who has undergone an organ transplant.
• Employees are also entitled to half a day of paid leave to receive vaccinations or undergo preventative medical examinations, including but not limited to mammograms and prostate screenings.
• Employees of private health care institutions, pharmacies and pharmaceutical warehouses shall be granted a one-time special leave of 14 business days, which may be taken until 2 February 2026, in recognition of services rendered during the COVID-19 pandemic.
• Parents and legal guardians of children and adolescents diagnosed with autism spectrum disorder are authorised to be absent from work as needed to attend emergencies affecting the well-being of their dependants that occur at their educational institution.

Leave due to voluntary or civic duties

Employees shall be entitled to unpaid leave and shall retain their employment status during periods of mandatory military service or while serving as military reserves. Employees shall be entitled to unpaid leave for the purpose of attending to official union activities (eg, union leaders). Employees shall also be entitled to a minimum of two hours of paid leave on national election day in order to exercise their right to vote.

Employees who are active volunteer members of the fire department shall be entitled to leave during working hours to respond to emergency calls involving fires or accidents. Such time shall be deemed as time effectively worked for all legal purposes.

Employees who have under their care certain minors or persons with any type of disability are entitled in certain cases to special working conditions, such as priority in the use of vacation leave, temporary modification or reduction of the workday during school vacation periods, and the possibility of teleworking. Additionally, a female worker who is victim of attempted femicide may request the temporary adjustment of her work duties for a period of one year from the date of the incident, in order to allow for her proper recovery and protection.

Non-Compete and Confidentiality Clauses

Employment contracts may include specific provisions that impose obligations upon employees, such as non-compete and confidentiality clauses. These obligations are enforceable for the duration of the employment relationship, and any breach thereof may give rise to summary dismissal without severance compensation. However, such provisions must not infringe upon the employee’s fundamental or constitutional rights, including:

• the freedom to work;
• the right to engage in economic activity;
• the right to privacy; and
• the right to be free from arbitrary or discriminatory treatment.

For such obligations to be valid, they must be reasonable, necessary and proportionate to the legitimate aim pursued, in such a manner that they do not breach the employee’s above-mentioned fundamental or constitutional rights, among others. (See also 2.1 Non-Competes.)

An employer and employee may agree upon a non-compete covenant. Such covenant shall be enforceable during the term of the employment relationship, and any breach thereof may constitute a material violation of the employee’s contractual obligations. Under Chilean law, non-compete covenants applicable during the course of the employment relationship are expressly recognised. Engaging in competing activities may constitute just cause for termination without severance, provided that a specific prohibition has been clearly established in the employment contract.

Post-termination non-compete clauses, however, are not expressly regulated by statute. Historically, Chilean administrative and judicial authorities have tended to consider such clauses as unenforceable on the grounds that they infringe upon the employee’s constitutional freedom to work and to pursue any lawful economic activity. Notwithstanding the foregoing, judicial decisions have upheld the enforceability of post-contractual non-compete agreements, provided they meet the following criteria:

• narrowly tailored to the employer’s specific line of business;
• limited in time and geographic scope, with durations not exceeding 12 or 24 months following the termination of the employment agreement;
• include fair financial compensation in exchange for the non-compete obligation; and
• restricted to key employees whose roles are critical to the business.

This list is neither exhaustive nor definitive, and future judicial rulings may modify these standards or introduce additional requirements. Accordingly, compliance with these elements does not guarantee enforceability, as courts may still declare the provision void and unenforceable. Conversely, a non-compete clause may be upheld even if not all of these conditions are fully satisfied.

Non-solicitation covenants are not expressly regulated by law, and there is no established judicial criterion regarding their enforceability. Nonetheless, under general legal principles, an employer may agree with an employee to include a non-solicitation obligation. The enforceability of such a provision – whether during or after the termination of the employment relationship – shall be assessed based on its necessity, proportionality and, where applicable, the existence of adequate compensation.

It is understood, however, that a breach of such obligation shall not invalidate the resignation of the employee or the client, nor shall it limit their subsequent engagement by a new employer.

Pursuant to employment legislation, employers are under a legal obligation to maintain the confidentiality of all personal information and data pertaining to employees that they access during the course of the employment relationship. Moreover, general data protection regulations are fully applicable in the employment setting. These rules govern the collection, processing and storage of personal data – defined as any information relating to an identified or identifiable individual – within databases and registries.

The primary data protection obligations applicable to employers in the employment context include the following.

Lawful Basis and Informed Consent

As a general principle, employers may collect and process personal data only where expressly authorised by statute or with the written and informed consent of the employee or job applicant. Prior to providing such consent – which may be revoked at any time – the individual must be informed of the intended purpose of data processing and whether the data will be shared with third parties. Certain exceptions apply: for example, consent is not required when processing data that is publicly accessible or relates to general information such as name, date of birth, address, educational background, and occupation. Consent is also not required when a private employer processes personal data strictly for internal purposes.

Sensitive Data Restrictions

Sensitive personal data is subject to enhanced protection. It is defined as data concerning an individual’s:

• physical or moral characteristics;
• private life;
• personal habits;
• racial or ethnic origin;
• political opinions;
• religious or philosophical beliefs;
• health status (physical or mental); or
• sexual life.

The collection and processing of such data is permitted only with explicit legal authorisation or the express consent of the individual concerned, except where the data is required for the provision of health-related benefits.

Purpose Limitation and Data Accuracy

Personal data that is not sourced from public registers may be used solely for the specific purposes for which it was collected. Employers are required to ensure that such data remains accurate and up to date. Data must be deleted when it becomes outdated or when the legal basis for its retention no longer exists. Inaccurate, ambiguous or incomplete data must be corrected or clarified.

Data Security and Confidentiality

Employers are responsible for implementing appropriate security measures to protect personal data. Employees who handle personal data are bound by confidentiality obligations, which remain in effect even after the termination of their employment.

Data Subject Rights

Employees and job applicants have the right to request from the employer access to their personal data, including information about the source, purpose of processing, and any third-party disclosures. They are also entitled to request the deletion, correction or blocking of data that is unlawfully held or inaccurate.

Workplace Monitoring

Any mechanisms used by employers to monitor employee conduct in the workplace must be proportionate, general in nature and impersonal, in line with the nature of the employment relationship and with respect for employee’s dignity. The use of audiovisual surveillance systems is lawful only when justified by technical requirements of the production process or for legitimate safety reasons.

In companies employing more than 25 individuals, no less than 85% of the workforce must be comprised of Chilean nationals or foreign nationals who meet at least one of the following criteria:

• they have legally resided in Chile for a continuous period of five years or more;
• they are legally married to, or are parties to a civil union with, Chilean nationals, or are the widows or widowers of Chilean nationals; or
• they are the parents of children who are Chilean nationals.

This nationality requirement shall not apply to foreign nationals classified as experts.

Furthermore, foreign nationals must obtain either a temporary residence permit or a special short-term work authorisation as a tourist in order to lawfully engage in remunerated employment activities in Chile.

Once the foreign worker has obtained the corresponding residence or work permit, they shall be subject to the general legal framework applicable to employment relationships. Accordingly, their employment contract and other related labour documentation must be registered at the Labour Bureau in the same manner as for any Chilean national.

The provision of services under a remote work or teleworking arrangement may be either full or part time. Such services may be rendered from a location freely chosen by the employee or from a specific place such as the employee’s home. Remote work requires a written agreement, the minimum content of which is governed by statute. Said agreement must include at least the following:

• the type of remote work or telework and whether it is full-time or part-time work;
• in the case of part-time telework, the method for alternating between in-person and remote work;
• the location(s) from which telework will be performed;
• the duration of the agreement;
• the mechanisms for monitoring and supervision to be used by the employer;
• the duration and distribution of the workday; and
• the minimum disconnection period for workers not subject to a weekly working hours limit.

Although privacy protection is not a legally required element of the agreement, there is no legal restriction preventing the parties from including such provisions in the contract. The remote work or telework agreement must be registered with the Labour Bureau within 15 calendar days from its execution.

If the remote work or teleworking arrangement is agreed upon after the employment relationship has begun, either party may unilaterally revert to the originally agreed in-person work modality, by providing no less than 30 days’ prior written notice to the other party. Conversely, if the employment relationship was initially established under a remote work or teleworking arrangement, any change to an in-person work modality shall require the mutual written consent of both parties.

Throughout the period in which services are rendered under a remote work or teleworking arrangement, the employer shall retain its obligation to ensure the health and safety of the employee. If telework is performed at a specific location, the employer must ensure that the applicable health and safety standards are met. The employer may not enter the employee’s residence or any third-party premises where services are rendered without the prior authorisation of the employee or the relevant third party, as applicable.

All equipment, tools and materials required for teleworking – including personal protective equipment – must be provided by the employer. Additionally, the employer must pay the employee the necessary expenses in the case of homework, including travel expenses when the employee is required to be physically present at the employer’s facilities.

Remote workers are entitled to the full scope of individual and collective rights set forth in the Labour Code (including social security coverage), except to the extent that such rights are incompatible with the specific provisions applicable to remote work or telework. Furthermore, remote workers shall at all times have the right to access the employer’s premises. The employer must guarantee the employee’s participation in collective activities held at the workplace and shall bear all related transportation costs when presence on site is required.

In certain circumstances, the provision of services under a teleworking arrangement may be mandatory for workers who are responsible for the personal care of (i) a child under 14 years of age or (ii) a person with a disability or in a situation of severe or moderate dependency, regardless of their age, provided that they do not receive remuneration for such care.

Chilean legislation does not expressly regulate the possibility of sabbatical leaves. However, there is no legal impediment for the parties to agree upon such leave in writing. During the period in which the employment contract is suspended due to a sabbatical leave, the employee continues to accrue time-based employment benefits, such as annual leave and severance per years of service.

While, in practice, new work arrangements such as desk sharing are in use, such arrangements are not specifically regulated under Chilean law.

The Constitution recognises unions as legal entities and guarantees employees the right to freely form, join, refrain from joining or withdraw from a union. The Labour Code affirms the right of employees to establish union organisations without prior authorisation, provided such organisations are formed in accordance with applicable laws and their respective governing statutes.

Membership to a union is entirely voluntary.

The primary function of a union is to represent its members in the implementation and enforcement of both individual and collective employment contracts or agreements. Additionally, unions act on behalf of their members in collective bargaining processes and provide support in matters related to:

• labour and safety law compliance;
• mutual assistance and welfare;
• occupational health and safety;
• professional development; and
• recreational initiatives.

Under Chilean law, collective bargaining is defined as the process through which one or more employers engage in negotiations with one or more unions with the objective of establishing uniform terms and conditions of employment and remuneration for a defined period. Such bargaining may take place at either the single-employer or multi-employer level. In the latter case, employers must grant their express prior consent to participate.

Collective bargaining may address all matters related to wages and other forms of remuneration, whether monetary or in-kind, as well as general working conditions. However, it may not extend to matters that would restrict the employer’s managerial prerogatives or matters unrelated to the employer(s) involved in the negotiation.

Two types of collective bargaining are recognised.

• Regulated collective bargaining, which is subject to detailed statutory procedures and confers specific rights and obligations upon the parties.
• Unregulated collective bargaining, which is carried out voluntarily by the parties without the procedural framework or statutory protections afforded to regulated bargaining. Importantly, industrial action (eg, strikes) is not permitted in the context of unregulated bargaining.

At the single-employer level, any duly constituted union at the company or establishment level may initiate a regulated collective bargaining process by submitting a proposed draft of a collective contract. In such cases, the employer is legally required to enter into negotiations.

The regulated bargaining process is governed by statutory timelines. Generally, negotiations must conclude within 45 days from the submission of the draft collective contract or from the expiration of a prior agreement. If no agreement is reached by the deadline, employees are typically required to vote on whether to accept the employer’s final proposal or to proceed with a lawful strike. The Labour Bureau must be kept informed throughout the process.

Multi-employer collective bargaining follows a similar procedural framework, although, in contrast to single-employer bargaining, participation by employers is entirely voluntary and cannot be compelled.

During the course of regulated bargaining, either party may request mediation services or voluntarily submit the dispute to arbitration. If arbitration is agreed upon or mandated (as in the case of prohibited industrial action), the resulting arbitral award has the same legal effect as a collective contract. Arbitration is compulsory in enterprises where strikes are legally prohibited and employees have been ordered to resume work by government authorities.

Employees actively engaged in regulated collective bargaining are afforded special protection against dismissal. Generally, they may only be terminated for serious misconduct or material breach of contract, and only with prior judicial authorisation.

As previously noted, parties may freely engage in unregulated collective bargaining outside the statutory framework. No procedural rules or protections apply in this context – employees involved are not afforded dismissal protections, and lawful strike is not permitted. The outcome of such bargaining is referred to as a collective agreement, as opposed to a collective contract, which arises from regulated bargaining.

Collective contracts and arbitration awards must have a minimum duration of two years and may not exceed three years. Collective agreements may have a duration of up to three years.

The provisions of collective contracts, collective agreements or arbitration awards automatically become binding terms of the individual employment contracts of the employees covered. These terms generally continue to apply even after the expiration of the collective instrument, with some exceptions. An individual employment contract may not stipulate remuneration or benefits inferior to those established in any applicable collective contract, agreement or award.

Collective instruments may not do the following:

• waive or amend employees’ statutory minimum rights;
• include clauses that require union membership as a condition of employment;
• mandate union affiliation by non-members within a certain period after hire; or
• limit the hiring of non-union members.

Application of collectively negotiated benefits to non-union employees who participated in the bargaining process requires:

• the union’s consent;
• the employee’s express acceptance; and
• the payment of all or part of the union’s standard monthly membership dues during the application of the collective benefits.

The employer is responsible for deducting such payments from the employee’s wages and remitting them to the relevant union.

Under Chilean labour legislation, employment contracts may be terminated solely on grounds expressly established by law, all of which must be duly justified. A key legal distinction exists between termination grounds that entitle the employee to severance compensation and those that do not.

Employees are not entitled to severance compensation when their dismissal is based on just cause, such as serious misconduct or material breach of contractual obligations. Likewise, no compensation is due when termination occurs for reasons not attributable to the employee, including:

• mutual agreement between the parties;
• resignation by the employee;
• death of the employee;
• expiration of a fixed-term contract;
• completion of a task-specific or service-specific contract; or
• events constituting force majeure or acts of God.

It should be noted that, for legal purposes, the expiration of fixed-term or task-specific contracts, as well as termination due to force majeure, are deemed terminations initiated by the employer.

Only three termination scenarios give rise to severance compensation, all involving employer-initiated dismissal:

• business needs (operational or economic grounds) – typically understood as redundancy;
• termination at will – without cause, applicable only to specific categories of employees such as executives and senior managerial personnel; and
• employer bankruptcy.

In these cases, employees with at least one year of continuous service are entitled to legal severance pay – unless a superior contractual severance amount has been agreed. The statutory severance is calculated at the rate of 30 days of the employee’s last monthly remuneration per year of service, including any fraction exceeding six months. This severance is subject to the following statutory caps:

• a monthly salary cap of 90 Unidades de Fomento (UF); and
• a maximum of 11 years of service (equivalent to 330 days of severance pay) (this seniority cap does not apply to employees hired before 14 August 1981).

When severance compensation is owed, the employer must either provide advance notice of dismissal – of at least 30 days – or pay in lieu thereof. However, such notice is not required in cases where termination is based on just cause or upon completion of fixed-term or task-specific contracts. For contracts concluded for specific tasks or services, severance upon completion is calculated at a rate of 1 to 2.5 days of remuneration per month worked (or per fraction exceeding 15 days), depending on the effective start date of the agreement.

Employees may resign voluntarily at any time, provided they give the employer at least 30 days’ prior written notice. In cases of serious breach of contract by the employer, the employee may unilaterally terminate the employment contract without prior notice and seek judicial redress for what is known as “constructive dismissal” (or indirect termination).

With regard to retirement, the statutory age for claiming a retirement pension is 65 years for men and 60 years for women. Employees are not legally required to retire upon reaching this age and may continue working while deferring or receiving their pension. Employers are not permitted to terminate an employment contract solely on the basis of the employee reaching retirement age, as doing so may constitute unlawful age-based discrimination. Further, the employee may claim retirement pension and continue working, as retirement is not a legal cause for termination.

In all termination scenarios, regardless of the reason, the employer is legally obligated to pay any outstanding or proportionally accrued vacation days.

There are no specific legal provisions governing collective dismissals. These cases are subject to the general rules applicable to individual terminations.

Where an employer terminates the employment contract on the grounds of business needs (primarily redundancy) or under the at-will termination mechanism applicable to managerial or similar personnel (without cause), it is legally obligated to either:

• provide the employee with at least 30 calendar days’ prior written notice; or
• pay the employee an amount equivalent to thirty days’ remuneration in lieu of notice.

In both scenarios, employees with one year or more of continuous service are also entitled to the statutory severance payment for years of service. Payment in lieu of prior notice and per years of service is also mandatory in case of termination due to the employer’s bankruptcy.

For all other forms of employer-initiated termination, no advance notice period is required. However, the employer must still provide written notice of termination specifying the applicable legal ground and its justification.

When an employee resigns voluntarily, a minimum of 30 calendar days’ written notice must be given to the employer. Nevertheless, in cases involving serious contractual breaches by the employer, the employee may terminate the contract immediately and initiate legal proceedings seeking compensation. This is known as constructive dismissal (despido indirecto).

Irrespective of the cause of termination, the employer is required to deliver a termination letter to the employee that clearly:

• sets out the statutory grounds relied upon and the justification;
• states the amount of severance compensation, if applicable;
• certifies the status of all social security contributions made during the employment relationship, accompanied by proof of payments; and
• indicates whether the release and settlement agreement (finiquito) will be executed electronically or in person, and notifies the employee of their right to reserve claims upon signing.

This letter must be delivered personally to the employee or sent via registered mail within the statutory deadlines – ranging from the same day to three or six days, depending on the legal ground for dismissal. A copy must also be submitted to the Labour Bureau.

The settlement or release agreement and corresponding payments due upon termination must be made available to the employee within ten calendar days from the effective termination date. The settlement or release agreement must be executed and ratified before a notary public or other competent certifying officer (ministro de fe).

An employer may lawfully terminate an employment contract without notice or severance compensation where the dismissal is based on a legally recognised cause constituting serious misconduct or contractual breach by the employee. Such grounds are as follows.

• The commission of a serious and duly substantiated act of misconduct, such as:
1. dishonesty or fraud in the performance of employment duties;
2. acts of sexual harassment;
3. use of physical violence against the employer or co-workers;
4. insulting or offensive conduct towards the employer;
5. immoral behaviour that adversely affects the company or its reputation; and
6. workplace harassment.
• Engaging in activities that compete with the employer’s business, where expressly prohibited under the employment contract.
• Unjustified absences, including:
1. two consecutive days of unexcused absence;
2. absence on two Mondays within the same calendar month; or
3. a total of three unexcused absences in any given month.
• Absence without justification or prior notice by employees who are responsible for tasks, operations or machinery whose interruption would materially impact the company’s operations.
• Abandonment of duties, defined as:
1. leaving the workplace abruptly during working hours without cause or permission; or
2. refusal without justification to perform the duties set forth in the employment contract.
• Acts or omissions involving gross negligence or recklessness that endanger:
1. the safety or operation of the establishment; or
2. the health or safety of co-workers.
• Intentional damage to the employer’s infrastructure, machinery, equipment, tools, materials or goods.
• Any other serious breach of the employee’s contractual obligations.

Although the employer is not obligated to pay severance or provide advance notice under these grounds, it must still comply with statutory formalities. Specifically, the employer must deliver a written notice of termination, clearly identifying the statutory ground relied upon and describing the underlying facts that substantiate the cause for dismissal.

An employment relationship may be lawfully terminated by mutual consent of the parties. To be valid and enforceable, such agreement must be executed in writing and must be signed and ratified by the employee before a notary public or another legally authorised certifying officer (ministro de fe).

The Chilean Labour Code provides special dismissal protections – commonly referred to as fuero laboral – to certain categories of employees for a specified period of time. During such protected periods, affected employees may only be dismissed with the prior authorisation of a competent labour court, and solely on limited grounds expressly established by law.

These protections apply to:

• union leaders;
• employees actively participating in collective bargaining proceedings;
• employees involved in the process of forming a union;
• pregnant employees, including during maternity leave and for a period of one year following the conclusion of postnatal leave;
• designated employee representatives on health and safety committees;
• employees whose child has died;
• employees exercising their right to paternity leave; and
• victims of attempted femicide.

As an exception, in the event of the permanent closure of the employer’s business operations, the employment contracts of union representatives and the employee representative at the safety committee (comités paritarios) may be lawfully terminated without prior court approval.

In addition, an employee who is on medical leave (licencia médica) may not be dismissed on the grounds of business necessity or through at-will termination mechanisms for the duration of such leave. An employee’s illness is not rightful ground for dismissal.

Finally, dismissals based on discriminatory motives are strictly prohibited. This includes, in particular, any termination based on protected characteristics such as:

• race;
• colour;
• sex;
• gender;
• maternity;
• breastfeeding, nursing;
• age;
• marital status;
• union affiliation;
• religion;
• political opinion;
• nationality;
• national origin;
• socio-economic status;
• language;
• beliefs;
• participation in professional associations;
• sexual orientation;
• gender identity;
• parentage;
• personal appearance;
• illness or disability (including especially cancer);
• social origin; or
• any other reason intended to nullify or alter equality of opportunity or treatment in employment and occupation.

(See also 8.2 Anti-Discrimination.)

Judicial Review of Unlawful or Unfair Dismissals

If an employee considers that the termination of their employment contract was unjustified, unfair or without legal cause, they may initiate a legal claim before the competent Labour Court. This action must generally be filed within 60 working days from the date of termination. The 60-day limitation period to file a claim may be extended to a maximum of 90 working days if the employee first requests intervention by the Labour Bureau before filing suit and only for the number of days the process was active before the bureau.

If the court rules in favour of the employee, it may award compensation (as reinstatement is only available in limited, legally defined circumstances). Compensation generally includes:

• payment in lieu of statutory notice (one month’s remuneration); and
• legal severance for years of service, as would apply in dismissals due to business necessity or at-will termination. (Special rules apply to fixed-term or task employment agreements.)

In addition, the court shall increase the severance per years of service payment between 30% and 100% surcharge based on the circumstances of the unlawful dismissal. All court-ordered compensation is adjusted for inflation and accrues legal interest from the date of termination to the date of payment.

Labour Protection Procedure for Discriminatory or Retaliatory Dismissals

Employees who believe they have been dismissed due to unlawful discrimination or in violation of fundamental rights may initiate a claim under the Special Labour Protection Procedure (Tutela Laboral). This mechanism also applies to dismissals resulting from:

• anti-union retaliation;
• unfair labour practices; or
• acts of victimisation following the exercise of legal labour rights.

If the court determines that a fundamental right has been violated, it may:

• impose a fine on the employer;
• order the employer to cease the unlawful conduct; and
• require corrective or remedial measures to mitigate the harm caused.

In addition to standard compensation for unfair dismissal, the court may award supplemental compensation ranging from six to 11 months’ salary, depending on the severity of the violation. Additionally, the ruling will be registered at the Labour Bureau and the employer may be barred from contracting with the state administration for a period of up to two years.

In cases involving serious discrimination or anti-union practices, the employee may elect between receiving compensation and being reinstated to their previous position. Reinstatement is also available upon request in cases involving:

• dismissals of employees protected by statutory dismissal protection (fuero laboral); or
• dismissal of union members resulting from unfair anti-union conduct by the employer.

The Chilean Constitution prohibits discrimination on any grounds other than an individual’s personal merit and suitability for a given role. It also enshrines the right to respect for privacy and personal honour.

The Labour Code declares unlawful any exclusionary or preferential treatment in employment that has the purpose or effect of impairing or nullifying equality of opportunity or treatment. This includes discrimination based on, inter alia:

• race;
• skin colour;
• sex;
• maternity;
• breastfeeding or nursing status;
• age;
• marital status;
• union membership or activity;
• religion;
• political opinion;
• nationality;
• national origin;
• socio-economic status;
• language;
• beliefs;
• participation in union organisations;
• sexual orientation;
• gender identity;
• affiliation;
• physical appearance;
• illness or disability (including especially cancer); or
• social origin.

Job advertisements issued by employers – whether directly or through third parties – are deemed discriminatory when they establish any of the above characteristics as conditions or requirements for applying.

The Labour Code provides a judicial remedy enabling employees to bring legal action against their employer where the employee’s fundamental rights are infringed, whether during the course of employment or in the context of termination.

In addition, the Anti-Discrimination Act defines arbitrary discrimination as any unjustified distinction, exclusion or restriction – whether imposed by public authorities or private individuals – that results in deprivation, disturbance or threat to the legitimate exercise of fundamental rights guaranteed by the Constitution or international human rights treaties ratified and in force in Chile. This definition is particularly applicable to actions based on:

• race or ethnicity;
• nationality;
• socio-economic status;
• language;
• ideology or political opinion;
• religion or belief;
• union membership or lack thereof;
• sex, maternity or breastfeeding status;
• sexual orientation;
• gender identity or expression;
• marital status, age, affiliation, personal appearance, illness or disability.

Moreover, the Labour Code provides specific legal protection against workplace sexual harassment and moral (labour) harassment. Where such conduct is duly substantiated, it constitutes valid cause for termination of the employment contract without severance compensation.

In Chile, judicial proceedings have been conducted electronically since the enactment of Law No 20,886 in 2015. Pursuant to this law, judicial rulings and procedural acts are required to be recorded in the Judiciary’s electronic system and prosecution platform.

Furthermore, Law No 21,394, effective as of 2021, governs the possibility for labour judges to authorise the remote appearance of any party to hearings via videoconference, provided that the attorneys possess the appropriate means to do so. For such purposes, the interested party must file a request with the court to appear remotely at least two days prior to the scheduled hearing date, providing a reliable means of contact.

Nevertheless, confessional evidence, expert and witness testimony, and any other procedural acts as determined by the judge, in principle, may only be rendered within the physical premises of the court.

In Chile, there are specialised courts for resolving labour disputes (Labour Courts) as well as specialised courts for labour and social security collection matters (Labour and Social Security Collection Courts).

The filing of collective claims is permitted. Additionally, if multiple claims against the same defendant are being processed before the same Labour Court and the legal actions are identical, the judge may order the consolidation of the cases provided they are at the same procedural stage.

Class actions are not admissible in labour disputes in Chile.

Regarding representation before the court, it is required that parties appear with the sponsorship and representation of a duly authorised attorney.

Employment-related disputes fall under the jurisdiction of the Labour Courts or the Labour Bureau, which are the competent authorities for their resolution. Arbitration proceedings, however, are limited in scope and may only be invoked in specific cases arising within the context of collective bargaining.

If the employee or employer is entirely unsuccessful in a trial or in an incidental proceeding, they may be ordered by the Court to pay personal costs arising from attorneys’ fees, and other participants’ fees, in addition to court costs, as determined by the Court.