CHILE Law and Practice Contributed by: Constanza Contreras, Gabriela Muñoz and Juan Francisco Reyes, SCR Abogados
before a notary public or other competent certifying officer ( ministro de fe ). 7.3 Dismissal for (Serious) Cause An employer may lawfully terminate an employment contract without notice or severance compensation where the dismissal is based on a legally recognised cause constituting serious misconduct or contractual breach by the employee. Such grounds are as follows. • The commission of a serious and duly substanti - ated act of misconduct, such as: (a) dishonesty or fraud in the performance of employment duties; (b) acts of sexual harassment; (c) use of physical violence against the employer or co-workers; (d) insulting or offensive conduct towards the employer; (e) immoral behaviour that adversely affects the company or its reputation; and (f) workplace harassment. • Engaging in activities that compete with the employer’s business, where expressly prohibited (a) two consecutive days of unexcused absence; (b) absence on two Mondays within the same calendar month; or (c) a total of three unexcused absences in any given month. under the employment contract. • Unjustified absences, including: • Absence without justification or prior notice by employees who are responsible for tasks, opera - tions or machinery whose interruption would mate - rially impact the company’s operations. • Abandonment of duties, defined as: (a) leaving the workplace abruptly during working hours without cause or permission; or (b) refusal without justification to perform the du - ties set forth in the employment contract. • Acts or omissions involving gross negligence or recklessness that endanger: (a) the safety or operation of the establishment; or (b) the health or safety of co-workers. • Intentional damage to the employer’s infrastruc - ture, machinery, equipment, tools, materials or goods.
• Any other serious breach of the employee’s con - tractual obligations. Although the employer is not obligated to pay sever - ance or provide advance notice under these grounds, it must still comply with statutory formalities. Specifi - cally, the employer must deliver a written notice of termination, clearly identifying the statutory ground relied upon and describing the underlying facts that substantiate the cause for dismissal. 7.4 Termination Agreements An employment relationship may be lawfully termi - nated by mutual consent of the parties. To be valid and enforceable, such agreement must be executed in writing and must be signed and ratified by the employ - ee before a notary public or another legally authorised certifying officer ( ministro de fe ). 7.5 Protected Categories of Employee The Chilean Labour Code provides special dismissal protections – commonly referred to as fuero laboral – to certain categories of employees for a specified period of time. During such protected periods, affect - ed employees may only be dismissed with the prior authorisation of a competent labour court, and solely on limited grounds expressly established by law. These protections apply to: • union leaders; • employees actively participating in collective bar - gaining proceedings; • employees involved in the process of forming a union; • pregnant employees, including during maternity leave and for a period of one year following the conclusion of postnatal leave; • designated employee representatives on health and safety committees; • employees whose child has died; • employees exercising their right to paternity leave; and • victims of attempted femicide. As an exception, in the event of the permanent clo - sure of the employer’s business operations, the employment contracts of union representatives and
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