- Overview: Chile
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Сhile
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Chile Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Chile and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Chile as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Chile instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Chile .
We are experts in global workforce employment in Chile, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Chile.
See Hiring and Firing Workforce in Chile Guide below for a general overview of labor rules and regulations in the country. Or contact us if you need to employ workers in Chile or would like to get more details.
Hiring and Firing Workforce in Chile Guide
Chile stands out among South America countries for its active foreign trade, solid financial institutions and sound policy, social protection. Should Chile be your business destination, here are some insights on your Chilean staff on-boarding.
As a rule, an employer must give his new employee a written contract within the first 5 days (for less than 30 days’ employment) or 15 days of employment. Employees in Chile are mostly hired on a permanent basis, hence provided with an open-ended contract. In a written contract, an employer is required to specify the terms of the contract, the workplace, nature of job the employee is employed to do, hours of work and the emolument. With the exception of specific conditions, an employer must obtain the consent of his employee in writing before he can change the content of his/her employment contract.
Minimum statutory employment rights
# Hours of work
The statutory hours of works are 8 hours per day and 45 hours per week. Employees in Chile legally work 6 days a week – Mondays through Saturdays, but cannot work on Sundays except for special reasons provided for in the labor code and essential services such as health care, fire, police, etc. services.
# Probation period
There are no strict rules in Chilean labor law as to the duration of an employee’s probation. In most cases, employees on fixed term (usually no larger than 12 months) contract can be considered to be on probation. During this period of employment, the employer can cancel the employee’s contract of employment if he is not satisfied with his/her performance.
# Annual leave
All employees are entitled to time off during any of the 15 legal holidays: New Year’s Day, Good Friday, Holy Saturday, Labor Day, Navy Day, Holiday of St. Peter & Paul, Holiday of Our Lady of Mount Carmel, Holiday of the Assumption of Mary, Two-day national holiday and Army Day, Columbus Day, Reformation Day, All Saints’ Day, Holiday of the Immaculate Conception, Christmas, and Bank holiday. Depending on the state of employment, any of these holidays can be substituted for any other employer’s choice holiday or even be increased.
Employees who have their employment contract for more than one year in the same company are entitled to 15 days of paid leave. Additional day for each 3 years worked is given to employees who have worked for 10 years or more. Employees usually take their annual leave in summer or spring.
# Parental leave
Females employees have the right to receive 18 weeks of maternity leave: 6 weeks during pregnancy and 12 weeks after the child is born. This 12 weeks can be stretched to 18 weeks if the baby does not weigh up to 1500 grams at birth. After the maternity leave, the employee is entitled to a daily one hour time off or a payment in lieu to care for her baby until he/she is 2 years old. Moreover, a maternity leave can be extended to one year period in the face of health complications. In this case, both parents can be allowed to share the leave between themselves. During the period of maternity leave, the male parent has the right to a 5-day paternal leave, and if his wife dies while on maternity leave, he will be entitled to her uncompleted leave. It is worth noting that the parental leave is usually paid by the Health Insurance.
# Sick leave
Employees are eligible for paid sick leave if they have been involved in the government Insurance program for no fewer than 6 months’ period and have made contributions to it for 3 months at a minimum.
Under normal circumstances, works performed for more than the statutory maximum hours, on Sundays or on holidays are compensated for as an overtime. In this case, the employer is obligated to pay the employee 50 percent above his/her hourly base wage. Employees are prohibited to work more than 10 hours (including the overtime) per day.
# State minimum salary
As of 2017, the legal minimum wage per month increased to 265 000 CLP. It is forecast that this monthly minimum wage will be increased further up to 276 000 by 2018.
# Employment termination
Chilean labor law has strict rules regarding the termination of an employment contract. Based on that, an employee can only be dismissed for the reasons stipulated in the code. Either of the parties who wishes to end the contract before the agreed time must give the other party no fewer than a 30-day notice or a payment instead (especially if the proposal is coming from the employer). Employees whose contracts are terminated are entitled to a special compensation, irrespective of whether they are made redundant or dismissed at will. An employer may not pay this compensation if the employee is dismissed for his/her misconduct or for breaching the terms of the contract. An employee on the contrary can file for damage and request for compensation if he/she feels that the employer has breached the terms of the employment contract or has not terminated the contract on justifiable grounds.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Chile by providing you with an Employer of Record solutions that allows you to jumpstart your global operations almost immediately, cost-effectively and compliantly.