The Chilean congress passed a new bill (law 21,327) which came into effect on October 1st, 2021. The bill, framed within the digital government modernization efforts, establishes new requirements for employment contracts provisions and registration with the Chilean Labor Direction.
All employment contracts in #Chile (existing and future) will have to contain the address and valid electronic mail addresses of both parties. These email addresses will be used for all notifications and procedures to be held before the Chilean Labor Direction.
Within 15 days after signing the employment contract, the employer will be obligated to digitally register the contract at the Chilean Labor Direction’s website.
Same digital registration will be required for employment termination and depending on the applicable legal cause for each particular case, the obligation to register may vary between 3 to 10 working days after termination, and 30 working days in advance if the alleged cause for the termination is “Company needs”.
|TERM||CAUSE OF TERMINATION|
|3 working days following the termination of the contract||Article 159
N°4 (Expiration of the term agreed in the contract)
N°5 (Conclusion of the work or service that gave origin to the contract)
article 160 (Disciplinary dismissal)
|6 working days following the termination of the contract||Article 159 N°6 (Fortuitous event or force majeure)|
|6 business days from the date of notification of the liquidation resolution by the court hearing the bankruptcy liquidation proceeding||Article 163 bis (Employer is subject to insolvency liquidation proceedings)|
|10 working days following the termination of the contract||Article 159 N°1 (Mutual agreement of the parties)
N°2 (Employee resignation)
N°3 (Death of employee)
|30 days notice||Article 161 (Business necessity or eviction)|
Employment contracts existing previously to the enforcement of law 21,327 will have to be digitalized and registered no later than April 30, 2022.
III. New unified employment digital registry.
The new bill foresees the issuing of a set of regulations that will establish a mandatory list of documents to be registered by every employer in order to unify employment and social security information at the Labor Direction’s website. Said registry will have to be kept up to date by the employers and will be accessible by the Chilean judiciary system in case of conflict.
The issuance of the aforementioned regulation is still pending and is expected to be issued in the next few weeks.
This report is not a substitute for the timely and accurate advice that an attorney can provide. For advice or additional information on the topics covered in this information document, please contact us.