What you need to know for employing in Chile

Employee contributions include Pension (Individual capitalization system), National Health Fund, and Unemployment Insurance. This list is non-exhaustive, please contact us for further information.

40 hours per week. Opt-out: limited. Certain types of employees are not subject to working hour limitations.

Overtime is capped and compensated.

Entitled to sick leave if can provide a medical certificate within 2 days from the beginning of the leave. The employer must forward the certificate to the health insurance within 3 days.  

• For the first 3 days of sick leave: not entitled to pay  

• From the 4th day onwards:  entitled to sick pay, however, it may be subject to a cap.

Maternity leave: 30 weeks paid maternity leave: 6 weeks before the birth and 24 weeks after, and is paid by health insurance. Paternity leave: 5 days of paid paternity leave. Some of maternity leave may be transferred to the father. Parental leave: Employees are entitled to 10 days of parental leave for a child under the age of 18 that requires personal care from their parents because of an accident or a serious or terminal illness, or probable risk of death.

If the employee has been employed for at least 1 year they are entitled to 15 working days’ paid leave + an additional 16 days of public holidays.  

Only required for termination without cause and after 1 year of continuous employment.

Termination in most cases is only permitted for cause and for valid reasons such as mutual agreement, resignation, expiration of a contract, breach of contract, company needs or reorganisation.

There are strict processes around termination that must be followed. Written notice must state the cause and effective date and be signed in person by the employee or sent by certified mail to their home address, AND filed with the Chilean Labor Ministry. After the termination letter is given, the employer must prepare a severance agreement.