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How to Hire Workers in Chile | Employer of Record (EOR) in Chile

Expand your business into Chile with confidence using our Employer of Record (EOR) services. We handle all aspects of local employment, including payroll, benefits, and compliance with Chilean labor laws. Our personalized approach ensures that your business operations in Chile run smoothly, giving you peace of mind as you grow your presence in this dynamic market.

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Chile, with its stable economy, business-friendly environment, and stunning landscapes, is an attractive destination for businesses looking to expand internationally. TCWGlobal simplifies the process of hiring in Chile, offering personalized services tailored to your specific needs.

With a population of over 19 million people, Chile boasts a skilled and educated workforce. From the bustling streets of Santiago to the pristine beaches of Viña del Mar, Chile offers a unique blend of urban sophistication and natural beauty.

When it comes to expanding your business into Chile, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers customized benefits and services for your workforce. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Chile will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Worker Classifications

There are no official subcategories of Workers in Chile. 

Fixed-Term Contracts

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

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. We will provide list of public holidays upon request. With limited exceptions, Workers are prohibited from working on public holidays and Sundays. 


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.

Sick Leave

Workers are entitled to sick leave upon medical certification. The medical system pays the Worker during their absence.

Working Hours

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 45 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 reduced to 44 hours; in the third year to 42 hours; and, at the fifth year, to 40 hours.


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.

Mandatory Bonuses

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 are not required to provide notice in order to end an employment contract. 

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.