CHILE Law and Practice Contributed by: Patrick Humphreys, Daniela Gazmuri Larraín, Paula Lühr, Ian Hinzpeter, Camila Leviante, Beatriz Riveros and José Luis Bravo, Garnham Abogados
Duration and Types of Contracts Employment contracts are commonly indefinite, fixed- term, or for a specific task, work or service. Indefinite contracts are the standard form for ongoing roles. Fixed-term contracts are permitted, but their duration and renewal are regulated, and misuse may cause the relationship to be treated as indefinite. Companies should be careful when using contrac - tor or consultancy arrangements for individuals who, in practice, work like employees. Chilean authorities and courts look at the reality of the relationship, not only the contract title. This is particularly relevant for managers, sales representatives, technical staff and remote workers. 4.3 Working Time Ordinary Working Hours As of 26 April 2026, the ordinary weekly working limit in Chile is 42 hours for most employees subject to working time restrictions. Law No 21,561 introduced a gradual reduction of the working week, from 45 to 44 hours in 2024, to 42 hours in 2026, and finally to 40 hours in 2028. As a general rule, ordinary working hours may not exceed ten hours per day. Employees are also entitled to a daily meal break, which is generally not treated as working time, and to weekly rest, usually on Sundays and public holidays, subject to statutory exceptions for certain industries and shift systems. Certain employees may be excluded from working time limits, especially senior managers or employees who work without immediate supervision. However, this exception is interpreted restrictively in practice. Employers should not assume that remote work or a senior title automatically removes working time pro - tections. Overtime and Practical Controls Overtime is permitted only in limited circumstances and must generally be agreed in writing. It is capped at two hours per day and is usually paid with a 50% surcharge over the ordinary hourly wage, unless a more favourable arrangement applies. Employers must also maintain reliable attendance and working time records.
labour rules. Its criteria are not equivalent to court judgments, but they are highly influential in practice and are commonly considered when assessing com - pliance, preparing internal policies, or responding to inspections. Labour courts decide disputes such as unfair dismiss - al, unpaid benefits, workplace harassment, anti-union practices and fundamental rights claims. Although Chile is a civil law jurisdiction, Supreme Court case law is relevant in practice, particularly through the special appeal for unification of case law, a mecha - nism specific to Chilean labour procedure that seeks to align conflicting interpretations by higher courts. Statutory rules, administrative criteria, and evolving court practice should therefore be monitored together when managing a workforce in Chile. 4.2 Characteristics of Employment Contracts Written Contract and Essential Terms An employment contract may exist even if it has not been signed in writing. If a person provides services personally, under subordination and dependence, and receives remuneration, Chilean law may treat the rela - tionship as employment regardless of the label used by the parties. In practice, direction, control, supervi - sion, or integration into the organisation may be rel - evant. The employer must normally put the contract in writ - ing within 15 days from the employee’s start date. For contracts for a specific task, work or service, or for contracts lasting less than 30 days, the period is generally five days. Failure to document the contract on time may create evidentiary problems and expose the employer to administrative fines. The contract must include minimum terms such as identification of the parties, start date, nature and place of services, remuneration and payment terms, working time and distribution, contract duration, and any other agreed covenants. Remote work and tel - ework are regulated under Law No 21,220. Remote, hybrid, cross-border management, or digital supervi - sion arrangements should therefore be documented carefully.
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