Chile
Some Chilean labor laws detail exceptions by which they do not apply to workers in executive positions (i.e. managers) or workers in particular regions of Chile and subcontracted workers.
Fixed-term contracts can be made for a maximum duration of one year. In the case of managers or individuals that have obtained a professional or technical degree granted by a state-recognized institution, the maximum duration is two years. The continued performance of services after the fixed-term date will automatically turn the contract into an indefinite contract. A second extension of a fixed-term employment contract produces the same effect.
Probationary periods are permitted. There are no restrictions on duration, but are generally one to three months.
The specific number of paid public holidays in Chile vary from one year to another. These holidays are split between 'Mandatory' and 'Non-mandatory' days. 'Mandatory' means that the worker must be given the day off and 'Non-mandatory' means that the employer may request a worker to work, but must be compensated at 150% their normal rate of pay on that day. Companies are subject to fines if they have a worker work on a 'Mandatory' holiday. Public holidays in Chile generally include: New Year's Day, Good Friday, Holy Saturday, Labor Day, Navy Day, Feast of Saint Peter and Saint Paul, Day of the Virgin of Carmen, Independence Day, Army Day, Day of the Race, Reformation Day, All Saint's Day, Immaculate Conception, Christmas
After 12 months of service, Workers are entitled to 15 business days of annual paid vacation. Exceptionally, in case of Workers rendering services in the Region of Magallanes and Chilean Antarctic, Region of Aisen del General Carlos Ibáñez del Campo and in the Palena Province are entitled to 20 business days of annual vacation. Any unused annual leave can be rolled over for up to two years. Workers cannot be paid in lieu of taking annual leave, except upon termination or resignation. Workers with 10 or more years of service are entitled to additional leave. Accrued but unused leave must be paid at termination.
Workers are entitled to sick leave upon medical certification. The medical system pays the Worker during their absence.
Some Workers (e.g., managers, those that work without supervision, etc.) are excluded from limits on work schedule. If not excluded, ordinary hours cannot exceed more than 10 hours per day or 44 hours per week. A maximum duration of daily work cannot exceed 12 hours, including overtime hours. Please note there will be a reduction of the weekly working hours which will be made gradually as of April 26th, 2024. The change will be phased in progressively over 5 years after the publication of Law No. 21.561. In the first year of the law, the ordinary working time will be further reduced to 42 hours in 2026; and to 40 hours in 2028.
Workers Overtime may only be agreed to in the case of temporary needs or situations affecting the business and when applicable is paid at a rate of 150% of the Worker’s ordinary hourly salary. Overtime is limited to 2 hours per day and Workers cannot exceed a total of three continuous months of overtime work. Overtime worked can be converted into additional holiday time up to five working days per year. A worker's overtime must be agreed in writing, and such an agreement can only have a validity period of 3 months.
There are no mandatory bonuses in Chile.
Some Workers (i.e., managers and those holding a position within the confidence of the employer) may be terminated at will. For other positions, a termination by the company’s decision should be structured under the legal ground of business necessities. In all cases, Workers must be provided with 30 days’ written advance notice of termination or payment in lieu. Notice is only not required if the termination is due to gross misbehavior, dishonesty, or another material breach of the employment contract. Severance is required for terminations without cause and the Worker is entitled to one month severance for every year worked, capped at 11 months.
Workers who resign from their job should provide the employer with at least 30 days' written notice. However, Chilean labor law does not impose sanctions for failing to comply with this notice period.
Maternity Leave: Employers must give pregnant women 18 weeks of maternity leave fully paid broken into two parts. The first 6 weeks of paid leave are before the estimated date of delivery and the remaining 12 weeks of paid leave are to be taken after the birth of the child. Paternity Leave: Fathers of a newborn or adopted child are entitled to 5 days of paid leave during the first month after childbirth. Note that if both parents are employed, the mother can choose to transfer some or all of her remaining time of maternity leave to the father starting from the seventh week of maternity leave, as the parents decide. Bereavement Leave: Workers in Chile are entitled to paid bereavement leave, and its duration depends on their relationship to the deceased. • 10 continuous calendar days of leave for the death of a child. • 7 continuous days of leave upon the death of a spouse, civil partner, or child during gestation. • 4 business days of leave upon the death of a parent or sibling. Marriage Leave: All workers who get married or join a civil union agreement in Chile are entitled to 5 continuous business days of marriage leave. An employee must notify their employer 30 days in advance and submit within 30 days after the wedding a marriage certificate or civil union agreement.
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