Growing your business and hiring employees in Chile?
Understanding Chilean working hours and labor regulations is essential for employers, especially when hiring local employees from abroad. Chile’s labor laws aim to ensure fair treatment, promote work-life balance, and protect worker well-being. By adhering to stipulated working hours and other employment regulations, employers can maintain compliance, avoid penalties, and foster a positive work environment.
Standard working hours in Chile
In Chile, the standard full-time working hours are a maximum of 45 hours per week, typically distributed over six days, from Monday to Saturday. However, Chile’s new labor law reduces the weekly working hours from 45 to 40 to align their work ecosystem with international standards.
The usual workday for office employees runs from 9 AM to 6 PM, including a 1-hour unpaid lunch break. In sectors such as retail, hours may vary, with some businesses opening as early as 8 AM. Part-time employees work less than the standard 45 hours, and their schedules are specified in their contracts.
Overtime regulations
In Chile, overtime is regulated under the Labor Code. Any hours worked beyond the standard 40-hour workweek are classified as overtime. Employees are entitled to receive 150% of their regular hourly wage for these additional hours.
Employers must obtain employees’ consent before requiring them to work overtime, and such requests should be agreed upon in advance. Employees have the right to refuse excessive overtime requests. Overtime cannot exceed two hours per day or 10 hours per week, except in exceptional circumstances.
Flexible working arrangements
In Chile, employees have the right to request flexible working arrangements, as outlined in the Labor Code. Common arrangements may include part-time work, telecommuting, or modified schedules based on the employee’s circumstances. Employees who are parents of children under the age of 2, caregivers, or those with health issues are typically eligible for these flexible options.
Breaks and rest periods
In Chile, employees who work more than six hours a day are entitled to at least a 30-minute unpaid meal break. This break is typically provided during the workday to ensure that employees have time to rest and recharge. Additionally, employees are entitled to a minimum rest period of 12 hours between shifts to promote well-being and recovery.
Over a seven-day period, employees are guaranteed at least 24 consecutive hours of rest, which is usually observed on weekends. While the law outlines these minimum requirements, employers and employees can negotiate different arrangements as long as they comply with the established labor regulations.
Night work and shift work
In Chile, night work is indeed defined as any work performed between 10 PM and 7 AM. Employees working during these hours are typically entitled to additional compensation, which is often an extra 25% of their regular hourly wage unless specified otherwise in their employment contract.
However, note that the Chilean Labor Code does not mandate a specific premium for night work – this compensation can vary based on collective bargaining agreements.
Part-time and minor employment
In Chile, part-time employees typically work fewer than 30 hours per week, often with regular and predictable schedules. The specific arrangements for part-time work can vary based on the industry and any relevant collective agreements.
Chile has established regulations concerning the employment of minors. The minimum age for employment is 15 years. Young people aged 15 to 17 can work up to 30 hours per week, with restrictions on their working hours to ensure their education is prioritized.
Minors are not allowed to work more than 5 hours per day and must not work during school hours. Additionally, employers must provide minors with the necessary protections to ensure their safety and well-being in the workplace.
Compliance and penalties
In Chile, employers are obligated to maintain accurate records of employee working hours, including overtime and breaks. These records must be kept for at least three years and should be readily available for inspection by labor authorities.
Failure to comply with record-keeping requirements can lead to significant fines. Depending on the nature and frequency of the violations, employers may face penalties ranging from Chilean Peso 1 million to Chilean Peso 10 million per infraction.
Employers must also respect employees’ time off, allowing them to disconnect from work communications outside of regular working hours without fear of repercussions.
Cultural considerations
Chilean employees highly value work-life balance, typically working upto 45 hours a week (and upto 40 hours now, given the new law). They appreciate flexible work arrangements that accommodate personal and family commitments, reflecting the importance placed on family in Chilean culture.
Chile also promotes employee well-being through various leave policies, including parental leave and vacation time. The cultural emphasis on family often means that employees may prioritize personal commitments, making it crucial for employers to recognize these values.
Chile’s diverse workforce includes individuals from various cultural backgrounds, each bringing unique perspectives on work hours, breaks, and the significance of time off.
Get started with Multiplier’s Employer of Record (EOR) services
Multiplier makes it easy to hire and manage employees in Chile. With our global Employer or Record (EOR) platform, you can hire employees in Chile without the need to establish a local entity. We take care of all HR responsibilities, including compliant contracts, payroll, labor regulations, and benefits administration.
With Multiplier, you can focus on expanding your business and building your team in Chile while ensuring adherence to local labor laws.
Book a demo with Multiplier’s experts today to discover how we can support you in growing your team in Chile.
