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Some Considerations About Chilean Labour Law

Author:Brokering Abogados
Profession:Brokering Abogados

If a Chilean company hires someone, the labour contract has to be in Spanish. There is no problem about having an English version if the parties are more familiarized with such language. However, the official version will be the Chilean version.

Usually, foreign contracts contain provisions about being able to dismiss an employee if his ill for a certain period. In Chile in accordance to article 160 of the Labour Code a worker cannot be dismissed during the period his ill, unless he has committed some of the actions that allow the employer to dismiss him without any compensation.

These contracts also contain provisions about allowing the employer to make any kind of deductions of the salary. Article 58 of the Labour Code states which deductions can be made from the salary. If the amount to be deducted is not one of the cases listed in that article, then the maximum amount that can be deducted is 15%. If the employer gave the employee a loan, he can deduct the total amount still due from the compensation.

If an employee has taken more holidays than he was entitled to, these holidays cannot be deducted from his compensation. Workers are entitled to take holidays only after they have worked for a year for their employer. The employer may allow them to take holidays during the first year, but he is not obliged to. To take holidays after the first year, workers need employer's permission (which cannot be unreasonable upheld). Therefore, because the employer allowed the worker to take more holidays than he was entitled to, these days cannot be deducted from the compensation the worker is entitled to.

If an employee has accrued the right to take holidays of two consecutive years before he accrues the right for the third period he must take at least the holidays he is entitled to for the first year.

The way the untaken days of holidays that are to be paid by the employer if he dismisses someone are calculated as follows:

  1. 25: 12 = 2.08 (days of holidays for each month worked) b) 2.08: 30 = 0.069 (days of holidays for each day worked) c) For example: 2.08 x 8 months = 17 days d) 0,069 x 18 days= 1.3 days e) Total amount of days = 18.3 days f) The 18.3 days should be counted after the day the employee was fired (from Monday to Friday) g) In addition, the Saturdays, Sundays and other national holidays within the 18.3 days should be included. This will give the total amount to be paid for non-taken holidays.

Another issue to be taken into account is...

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