Chile (CL)
South America's most stable and developed economy, Chile stretches 4,300 km from the Atacama Desert to Patagonia.
Employment Rights
Sick leave, dismissal protection and red flags in Chile.
Employment in Chile is governed by the Código del Trabajo (Labour Code) and regulated by the Dirección del Trabajo (DT). The code applies to all formal employment contracts regardless of worker nationality. Key features: mandatory written employment contracts, minimum wage (salario mínimo), paid annual leave (feriado), severance pay (indemnización por años de servicio), and strict anti-discrimination protections. Formal employment is strongly encouraged — working informally (sin contrato) leaves workers with no legal protections, no AFP contributions, no health coverage, and no legal recourse. The DT hotline (600 450 4000) provides free advice in Spanish. Unions (sindicatos) exist in larger companies and have collective bargaining rights.
Sick leave
Rules: Sick leave (licencia médica) must be certified by a licensed doctor and submitted to the employer within 2 business days. Licencias médicas are processed via the LME (Licencia Médica Electrónica) system — the doctor submits electronically and the employer is notified. The worker may not work during the licencia period.
Doctor note: Medical certificate required from the first day of illness. Submit the licencia to FONASA/ISAPRE within 2 business days of issuance. FONASA/ISAPRE then authorises or rejects the licencia.
Employer pay: First 3 days: employer pays full salary (or FONASA/ISAPRE depending on contract). From day 4 onwards: FONASA or ISAPRE pays the subsidy (subsidio por incapacidad laboral). FONASA: 100% of daily wage for the first licencia days, decreasing to minimum floor over extended periods. ISAPRE: plan-dependent, typically 100% for the first weeks. The employer does not pay after day 3 for extended illness.
Long-term: Extended licencias (more than 11 days) are classified as "licencia médica curativa" (curative) or "licencia médica preventiva" (preventive/isolation). Long-term disability: if illness extends beyond the licencia period, the worker may be referred for AFP Invalidity assessment (Pensión de Invalidez). The AFP SIS insurance covers disability pensions (see socialSecurity.ts).
Dismissal protection
Law: The Código del Trabajo provides strong dismissal protections. An employer can only dismiss a worker for specified legal causes (causales): (1) Causal necesidades de la empresa (business needs — economic/structural reasons): mandatory severance of 1 month's salary per year of service (up to 11 years), plus "substitutive notice" of 30 days' salary. (2) Causal desahucio: same compensation. (3) Disciplinary dismissal (causales article 160): includes serious misconduct, repeated tardiness, abandonment, criminal acts — no severance required but requires solid documented evidence. (4) Force majeure (caso fortuito): no severance. Unfair dismissal (without valid causal) must be compensated — courts commonly award 3× the legally mandated severance.
Deadline to sue: 60 days from dismissal to file a Tutela (constitutional rights complaint) at the Juzgado del Trabajo (Labour Court). 2 years for general labour complaints. Urgently consult a labour lawyer if you believe dismissal was unfair — the 60-day deadline for Tutela is critical.
Probation
No formal probationary period (período de prueba) is mandated by Chilean law — the Código del Trabajo does not recognise a trial period where reduced protections apply. However, employers can legally include a 90-day trial period clause in the contract under which either party can terminate with 15 days' notice without severance (this was introduced as "período de prueba" under the 2002 reform). After 90 days, full employment protections apply including severance entitlements. Both employer and employee must consent in writing to any trial clause.
Notice periods
Employer must give 30 days' written notice (aviso de despido) or pay 1 month's salary in lieu (substitutiva de aviso). Dismissal for disciplinary reasons (causal art. 160) does not require notice. Employee resignation: no mandatory notice period by law, though contracts often specify 30 days by custom. Collective dismissal (mass redundancy): additional procedures and authorisation may be required.
Working time
Max hours: The 2023 Ley 21.561 phases in a reduction from 45 to 40 hours/week: 44 hours from April 2024; 42 hours from April 26, 2026; 40 hours from April 2028. As of April 26, 2026, the maximum ordinary working week is 42 hours. The reduction cannot result in any wage decrease. Maximum 9 hours per day (or 10 hours for certain agreements). Maximum daily continuous work: 9 hours with exceptions.
Min rest: Minimum 12 hours between work shifts. Mandatory meal break of at least 30 minutes after 5 continuous hours. Full day off: at least one day per week (must be a Sunday for retail workers in most cases).
Overtime: Overtime (horas extraordinarias) requires a written agreement between employer and employee. Maximum 2 extra hours per day, paid at 150% of base hourly rate (or 200% on Sundays/public holidays). Systematic mandatory overtime without written agreement is illegal. "Overtime absorb" clauses in contracts are invalid. Many professional and managerial roles (sueldo sobre 2x minimum wage) are excluded from overtime limits under article 22 of the Código del Trabajo — verify your contract.
Vacation
15 working days (three weeks) paid annual leave per year (feriado legal) after 1 year of continuous service. Increases to 20 working days for workers with 10+ years of service with the same employer or any employer (Feriado Progresivo — requires the 10 years in any employer, not necessarily current). Leave can be split into periods, with at least 10 consecutive days required in one block. Unused leave can be carried over for up to 2 years (by agreement). Workers cannot be paid in lieu of vacation — mandatory leave must be taken.
Anti-discrimination
The Código del Trabajo (article 2) and the Constitution prohibit discrimination based on: race, colour, sex, age, marital status, union membership, religion, political opinion, national origin, socioeconomic background, disability, or sexual orientation. The Dirección del Trabajo investigates discrimination complaints. The Tutela laboral (constitutional rights protection procedure) allows workers to sue for discrimination and receive additional compensation of 6–11 months' salary if proven. Gender pay gap: employers with 200+ employees must report pay differences by gender annually.
Contract red flags
- !"Artículo 22" exclusion clause in contracts for workers earning less than 2× minimum wage — this excludes you from maximum hours and overtime protections; only legally valid for truly autonomous professional roles
- !"Gratificación absorb" clause: means the legally required annual bonus (gratificación) is already included in your salary — ensure this is explicitly calculated and fair, not just a blank absorb clause
- !"Horas extraordinarias incluidas en el sueldo" (overtime included in salary) without specifying a capped number of hours or hourly rate — illegal and common abuse
- !Verbal employment — any employment without a signed written contract (firmado ante un ministro de fe if not done at DT within 5 days) is legally unenforceable
- !No vacation entitlement before 1 year — the law requires vacation from the first year completion; probation period workers must be reinstated for full year leave entitlement after 90 days
- !Contracts specifying a fixed term (plazo fijo) renewed more than twice in a row — the Código del Trabajo automatically converts this to an indefinite (plazo indefinido) contract
- !FONASA/AFP deductions that do not appear in monthly payslip — employer must declare and pay your contributions every month; check Previred.com or your AFP statement
Employment Rights
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