Global Employment Law Guide |
|
Chile |
|
|
(Latin America)
Firm
Claro & Cia., Abogados
Contributors
Juan Pablo Cabezón |
|
| What are the different categories of employment status (for example, employee, worker, self-employed individuals, etc)? | The key categories are (i) employees (“trabajadores”) under an employment contract, i.e., individuals who render personal services under subordination and dependence; (ii) independent contractors/self-employed (“trabajadores independientes”), who render services without subordination; and (iii) employers (natural or legal persons) as the counterparty. Misclassification is assessed based on the reality of subordination/dependence rather than labels (Labor Code, arts. 3 and 7). |
| Are there different types of employment contracts (for example, fixed-term, indefinite)? | The main types are indefinite-term contracts (general rule), fixed-term contracts, and contracts for a specific work or project (“obra o faena”). The agreed term/type is a mandatory clause of the written contract and drives termination mechanics and severance exposure (Labor Code, art. 10 No. 6; termination regime arts. 159–161). |
| What requirements need to be met in order for an employment contract to be valid? | An employment contract is valid when it reflects the existence of personal services rendered under subordination and dependence for remuneration (Labor Code, art. 7). It must be recorded in writing and contain at least the minimum clauses listed in art. 10 (place/date; parties; services and place; remuneration; working hours; term; and other agreed clauses). Amendments must also be in writing (art. 11), subject to limited statutory exceptions (e.g., legal/collective wage adjustments). |
| Are part-time employees afforded the same rights as full-time employees? | Yes, part-time employees are employees under the Labor Code and generally enjoy the same core statutory protections as full-time employees (minimum standards, anti-discrimination, vacation/leave rights, and due process for termination), with benefits and entitlements that are inherently proportional to remuneration and agreed working time where the law so provides. Differential treatment must not be arbitrary or discriminatory (Labor Code, arts. 2, 3 and 7). |
| Can employment contracts be assigned? | Employment contracts are not “freely assignable” in the civil-law sense because they are personal relationships governed by mandatory labor standards. However, Chile has a statutory “labor succession/continuity” rule: changes in ownership, possession, or mere holding of the enterprise do not affect employees’ rights and obligations, which continue with the new employer(s) (Labor Code, art. 4(2)). In practice, M&A/transfer scenarios are analyzed under this continuity rule rather than assignment. |
| What rights do employees have (to object, to severance), if any, when the company they work for is transferred as a going concern? | In a going-concern transfer (change in ownership/possession/holding of the enterprise), employees’ contracts and accrued rights generally continue by operation of law, and the new employer is bound by existing individual and collective obligations (Labor Code, art. 4(2)). Chile does not provide a general statutory right to object to the transfer or an automatic severance payment solely because of the transfer; severance typically arises only if the employment relationship is terminated under a legal ground (arts. 159–161). |
| Do you have statutory rights for employees on change of control of an employer? If so, please give the statute. | Chile does not have a general labor-law statute granting employees specific rights triggered solely by a corporate “change of control” (shareholding/control change) where the employing entity remains the same. The closest statutory protection relevant to changes in the enterprise is the continuity rule in Labor Code art. 4(2) for changes in ownership/possession/holding. Change-of-control protections, if any, are typically contractual (e.g., executive arrangements) and cannot waive minimum statutory rights (art. 5). |
| In what circumstances can employers unilaterally change the terms of employment, and what remedies (if any) are afforded to an employee? | Unilateral changes are narrowly regulated. Under the statutory ius variandi, an employer may change the nature of services and/or the workplace within the same city/location only if the new tasks are similar, the change does not cause “detriment” to the employee, and other statutory conditions are met (Labor Code, art. 12). The employer may also adjust the start/end time by up to 60 minutes for process-related reasons with 30 days’ notice (art. 12). Employees may challenge an unlawful or detrimental change before the Labor Inspectorate and then the Labor Court (art. 12), and contractual changes generally must be agreed in writing (art. 11). |
| Is your jurisdiction an employment-at-will jurisdiction? What are the employer’s termination rights? | Chile is not an employment-at-will jurisdiction. Termination must be based on a statutory ground (Labor Code, arts. 159, 160, 161) and must comply with formal requirements and, where applicable, severance rules. Employers can terminate by mutual agreement, expiry of a fixed term, completion of work/project, force majeure, employee-cause or guilty grounds (art. 160), or business needs (“necesidades de la empresa”, art. 161), among others, subject to judicial review. |
| Are there remedies for dismissal without cause or wrongful termination? | Yes. Employees may challenge dismissals as unjustified/undue and seek statutory severance and surcharges where applicable under the Labor Code’s dismissal regime (arts. 159–161 and related provisions). Separately, where dismissal (or other conduct) infringes constitutional/fundamental rights in the workplace, employees may bring a special “labor protection” action ("tutela laboral") with remedies tailored to rights violations (Labor Code, tutela procedure). |
| Are there protections for whistleblowers? | There is no single, general private-sector “whistleblower statute” in the Labor Code equivalent to some common-law systems. Practically, retaliation risks are addressed through (i) general dismissal and anti-discrimination rules and (ii) the tutela laboral framework when the employer’s response to a report/complaint amounts to a violation of fundamental rights (e.g., unlawful retaliation affecting protected rights). Sector-specific whistleblower protections may exist in special statutes outside the Labor Code depending on the regulated activity. |
| Do employees have a right to privacy? If so, what are the remedies for a breach? | Yes. Employees have statutory and constitutional privacy-related protections, reflected in labor law duties (e.g., confidentiality/reserve obligations regarding certain employee data) and in limits on workplace control measures. Labor Code art. 154 bis is a relevant statutory anchor for confidentiality of employee information. Breaches may trigger administrative enforcement and, if framed as a violation of fundamental rights, may be pursued through tutela laboral with judicial remedies. |
| Are employees afforded any anti-discrimination protection? | Yes. The Labor Code prohibits arbitrary discrimination in employment and sets workplace standards against harassment/violence (Labor Code, art. 2). In addition, Chile’s general Anti-Discrimination Act (Law No. 20,609) defines “arbitrary discrimination” and provides a judicial action. In labor disputes, discrimination claims are commonly litigated through tutela laboral due to its specialized labor-court procedure and remedies. |
| Are there statutory rights to vacation, medical leave and parental leave? Have there been any changes to leave benefits in the past 12 months? Is there any proposed legislation that employers should be aware of that will impact leave benefits? | Vacation: employees are entitled to at least 15 business days of paid annual leave, with statutory rules on accrual, timing and counting of days (Labor Code, arts. 67–70). Medical leave: income replacement during certified sickness is governed primarily through statutory sick-leave subsidies (e.g., DFL No. 44/1978 on subsidies for incapacity to work). Parental leave: postnatal parental leave is regulated in the Labor Code (art. 197 bis) and linked to the subsidy framework. Recent changes (past 12 months) relevant to “leave context” include broader workplace violence/harassment and prevention obligations introduced by Law No. 21,643 (e.g., updates to Labor Code art. 2 and related compliance), which affect workplace policies and investigations even if not a “leave entitlement” change. |
| Are restrictive covenants recognized and, if so, what are reasonable restrictions as to geography, duration and scope of activity? | Post-termination restrictive covenants (e.g., non-compete) are not comprehensively regulated in the Labor Code, and their enforceability is assessed case-by-case under mandatory labor principles (including irrenunciability of statutory rights and freedom to work). Because there is no statutory “safe harbor” on geography/duration/scope, reasonableness analyses typically focus on proportionality, legitimate interest, and whether the restriction effectively prevents the worker from exercising their trade or profession, potentially requiring compensation in practice. Where restrictions operate during employment (e.g., exclusivity/conflict-of-interest), they are generally easier to support than post-termination restraints. |
| Can employees be terminated for refusing to sign a restrictive covenant? What serves as consideration for a restrictive covenant? | As a general labor-law matter, an employer cannot compel an employee to accept a new post-termination restrictive covenant without consent, because contract amendments must be recorded in writing and generally require agreement (Labor Code, art. 11), and unilateral changes are limited (art. 12). Terminating someone solely for refusing to sign a new restrictive covenant would still need to fit within a statutory termination ground (arts. 159–161) and may be challenged as unjustified or as a rights violation depending on the circumstances. Chilean law does not use a common-law “consideration” concept; in practice, if a post-termination restraint is agreed, some form of compensatory payment is commonly used to support proportionality. |
| Does your jurisdiction require contributions to a pension or retirement scheme? | Yes. Chile has mandatory social security/pension contributions. For old-age, disability and survivors’ pensions in the private system, the core framework is Decree Law No. 3,500 (AFP system), which establishes compulsory contributions and related employer withholding/payment mechanics, subject to specific rules and exceptions. |
| Are certain benefits mandated by your jurisdiction? | Yes. Multiple statutory benefits/rights are mandatory, including minimum contractual clauses (Labor Code, art. 10), paid annual vacation (arts. 67–70), and statutory leaves/subsidies (e.g., sickness subsidies under DFL No. 44/1978; postnatal parental leave under Labor Code art. 197 bis). In addition, employers must implement mandatory internal policies and procedures in areas such as harassment and workplace violence prevention, consistent with the current text of the Labor Code (e.g., art. 2) and related regulations. |
| Is it permitted to have a mandatory retirement age in your jurisdiction? | In the general private-sector Labor Code regime, reaching a retirement age is not, by itself, a general statutory ground for termination; termination must rely on one of the legal causes in arts. 159–161. A compulsory retirement age policy may also raise discrimination concerns (Labor Code, art. 2; Law No. 20,609 includes age as a protected category in the concept of arbitrary discrimination) and would be assessed carefully case-by-case. |
| Is it possible to cease pension or insured benefits (income continuance/disability insurance, healthcare, life assurance, etc.) when work continues beyond retirement age? | If the employment relationship continues, labor and social security obligations generally continue to apply according to the applicable statutory regimes and the employee’s status (including pensioner status where applicable). There is no general Labor Code rule allowing an employer to unilaterally cease agreed insured benefits solely because the employee has exceeded a retirement age while still working; any change to contractual benefits typically requires agreement (art. 11), and unilateral change is limited (art. 12). Pension contribution mechanics depend on the specific social security rules (e.g., DL 3,500 and related regulations) and the employee’s pension/affiliation circumstances. |
| Can an employer require that employees return to work in the office (absent government order to shut down)? If an employee refuses to return to the office, can the employer terminate the employee’s employment? | If the employee is under a telework/remote work agreement, return-to-office depends on the telework regime and what was agreed. Where telework was implemented after employment began, either party may generally revert to the originally agreed conditions with at least 30 days’ written notice (Labor Code, art. 152 quater I). If the employment began as telework, a switch to on-site work requires agreement (art. 152 quater I). If an employee refuses a lawful and properly implemented return-to-office change, the employer may seek to apply statutory consequences, but any termination must still be grounded in a legal cause (arts. 159–161) and is subject to challenge. |
Global Employment Law Guide
Chile
(Latin America) Firm Claro & Cia., AbogadosContributors Juan Pablo Cabezón
Updated 29 Apr 2026The key categories are (i) employees (“trabajadores”) under an employment contract, i.e., individuals who render personal services under subordination and dependence; (ii) independent contractors/self-employed (“trabajadores independientes”), who render services without subordination; and (iii) employers (natural or legal persons) as the counterparty. Misclassification is assessed based on the reality of subordination/dependence rather than labels (Labor Code, arts. 3 and 7).
The main types are indefinite-term contracts (general rule), fixed-term contracts, and contracts for a specific work or project (“obra o faena”). The agreed term/type is a mandatory clause of the written contract and drives termination mechanics and severance exposure (Labor Code, art. 10 No. 6; termination regime arts. 159–161).
An employment contract is valid when it reflects the existence of personal services rendered under subordination and dependence for remuneration (Labor Code, art. 7). It must be recorded in writing and contain at least the minimum clauses listed in art. 10 (place/date; parties; services and place; remuneration; working hours; term; and other agreed clauses). Amendments must also be in writing (art. 11), subject to limited statutory exceptions (e.g., legal/collective wage adjustments).
Yes, part-time employees are employees under the Labor Code and generally enjoy the same core statutory protections as full-time employees (minimum standards, anti-discrimination, vacation/leave rights, and due process for termination), with benefits and entitlements that are inherently proportional to remuneration and agreed working time where the law so provides. Differential treatment must not be arbitrary or discriminatory (Labor Code, arts. 2, 3 and 7).
Employment contracts are not “freely assignable” in the civil-law sense because they are personal relationships governed by mandatory labor standards. However, Chile has a statutory “labor succession/continuity” rule: changes in ownership, possession, or mere holding of the enterprise do not affect employees’ rights and obligations, which continue with the new employer(s) (Labor Code, art. 4(2)). In practice, M&A/transfer scenarios are analyzed under this continuity rule rather than assignment.
In a going-concern transfer (change in ownership/possession/holding of the enterprise), employees’ contracts and accrued rights generally continue by operation of law, and the new employer is bound by existing individual and collective obligations (Labor Code, art. 4(2)). Chile does not provide a general statutory right to object to the transfer or an automatic severance payment solely because of the transfer; severance typically arises only if the employment relationship is terminated under a legal ground (arts. 159–161).
Chile does not have a general labor-law statute granting employees specific rights triggered solely by a corporate “change of control” (shareholding/control change) where the employing entity remains the same. The closest statutory protection relevant to changes in the enterprise is the continuity rule in Labor Code art. 4(2) for changes in ownership/possession/holding. Change-of-control protections, if any, are typically contractual (e.g., executive arrangements) and cannot waive minimum statutory rights (art. 5).
Unilateral changes are narrowly regulated. Under the statutory ius variandi, an employer may change the nature of services and/or the workplace within the same city/location only if the new tasks are similar, the change does not cause “detriment” to the employee, and other statutory conditions are met (Labor Code, art. 12). The employer may also adjust the start/end time by up to 60 minutes for process-related reasons with 30 days’ notice (art. 12). Employees may challenge an unlawful or detrimental change before the Labor Inspectorate and then the Labor Court (art. 12), and contractual changes generally must be agreed in writing (art. 11).
Chile is not an employment-at-will jurisdiction. Termination must be based on a statutory ground (Labor Code, arts. 159, 160, 161) and must comply with formal requirements and, where applicable, severance rules. Employers can terminate by mutual agreement, expiry of a fixed term, completion of work/project, force majeure, employee-cause or guilty grounds (art. 160), or business needs (“necesidades de la empresa”, art. 161), among others, subject to judicial review.
Yes. Employees may challenge dismissals as unjustified/undue and seek statutory severance and surcharges where applicable under the Labor Code’s dismissal regime (arts. 159–161 and related provisions). Separately, where dismissal (or other conduct) infringes constitutional/fundamental rights in the workplace, employees may bring a special “labor protection” action ("tutela laboral") with remedies tailored to rights violations (Labor Code, tutela procedure).
There is no single, general private-sector “whistleblower statute” in the Labor Code equivalent to some common-law systems. Practically, retaliation risks are addressed through (i) general dismissal and anti-discrimination rules and (ii) the tutela laboral framework when the employer’s response to a report/complaint amounts to a violation of fundamental rights (e.g., unlawful retaliation affecting protected rights). Sector-specific whistleblower protections may exist in special statutes outside the Labor Code depending on the regulated activity.
Yes. Employees have statutory and constitutional privacy-related protections, reflected in labor law duties (e.g., confidentiality/reserve obligations regarding certain employee data) and in limits on workplace control measures. Labor Code art. 154 bis is a relevant statutory anchor for confidentiality of employee information. Breaches may trigger administrative enforcement and, if framed as a violation of fundamental rights, may be pursued through tutela laboral with judicial remedies.
Yes. The Labor Code prohibits arbitrary discrimination in employment and sets workplace standards against harassment/violence (Labor Code, art. 2). In addition, Chile’s general Anti-Discrimination Act (Law No. 20,609) defines “arbitrary discrimination” and provides a judicial action. In labor disputes, discrimination claims are commonly litigated through tutela laboral due to its specialized labor-court procedure and remedies.
Vacation: employees are entitled to at least 15 business days of paid annual leave, with statutory rules on accrual, timing and counting of days (Labor Code, arts. 67–70).
Medical leave: income replacement during certified sickness is governed primarily through statutory sick-leave subsidies (e.g., DFL No. 44/1978 on subsidies for incapacity to work).
Parental leave: postnatal parental leave is regulated in the Labor Code (art. 197 bis) and linked to the subsidy framework.
Recent changes (past 12 months) relevant to “leave context” include broader workplace violence/harassment and prevention obligations introduced by Law No. 21,643 (e.g., updates to Labor Code art. 2 and related compliance), which affect workplace policies and investigations even if not a “leave entitlement” change.
Post-termination restrictive covenants (e.g., non-compete) are not comprehensively regulated in the Labor Code, and their enforceability is assessed case-by-case under mandatory labor principles (including irrenunciability of statutory rights and freedom to work). Because there is no statutory “safe harbor” on geography/duration/scope, reasonableness analyses typically focus on proportionality, legitimate interest, and whether the restriction effectively prevents the worker from exercising their trade or profession, potentially requiring compensation in practice. Where restrictions operate during employment (e.g., exclusivity/conflict-of-interest), they are generally easier to support than post-termination restraints.
As a general labor-law matter, an employer cannot compel an employee to accept a new post-termination restrictive covenant without consent, because contract amendments must be recorded in writing and generally require agreement (Labor Code, art. 11), and unilateral changes are limited (art. 12). Terminating someone solely for refusing to sign a new restrictive covenant would still need to fit within a statutory termination ground (arts. 159–161) and may be challenged as unjustified or as a rights violation depending on the circumstances. Chilean law does not use a common-law “consideration” concept; in practice, if a post-termination restraint is agreed, some form of compensatory payment is commonly used to support proportionality.
Yes. Chile has mandatory social security/pension contributions. For old-age, disability and survivors’ pensions in the private system, the core framework is Decree Law No. 3,500 (AFP system), which establishes compulsory contributions and related employer withholding/payment mechanics, subject to specific rules and exceptions.
Yes. Multiple statutory benefits/rights are mandatory, including minimum contractual clauses (Labor Code, art. 10), paid annual vacation (arts. 67–70), and statutory leaves/subsidies (e.g., sickness subsidies under DFL No. 44/1978; postnatal parental leave under Labor Code art. 197 bis). In addition, employers must implement mandatory internal policies and procedures in areas such as harassment and workplace violence prevention, consistent with the current text of the Labor Code (e.g., art. 2) and related regulations.
In the general private-sector Labor Code regime, reaching a retirement age is not, by itself, a general statutory ground for termination; termination must rely on one of the legal causes in arts. 159–161. A compulsory retirement age policy may also raise discrimination concerns (Labor Code, art. 2; Law No. 20,609 includes age as a protected category in the concept of arbitrary discrimination) and would be assessed carefully case-by-case.
If the employment relationship continues, labor and social security obligations generally continue to apply according to the applicable statutory regimes and the employee’s status (including pensioner status where applicable). There is no general Labor Code rule allowing an employer to unilaterally cease agreed insured benefits solely because the employee has exceeded a retirement age while still working; any change to contractual benefits typically requires agreement (art. 11), and unilateral change is limited (art. 12). Pension contribution mechanics depend on the specific social security rules (e.g., DL 3,500 and related regulations) and the employee’s pension/affiliation circumstances.
If the employee is under a telework/remote work agreement, return-to-office depends on the telework regime and what was agreed. Where telework was implemented after employment began, either party may generally revert to the originally agreed conditions with at least 30 days’ written notice (Labor Code, art. 152 quater I). If the employment began as telework, a switch to on-site work requires agreement (art. 152 quater I). If an employee refuses a lawful and properly implemented return-to-office change, the employer may seek to apply statutory consequences, but any termination must still be grounded in a legal cause (arts. 159–161) and is subject to challenge.