CHILE Law and Practice Contributed by: Christian Alvarado and Agustín Alcalde, Clyde & Co Chile
1.6 Prohibition on Carrying Out an HR Internal Investigation Under the Karin Act, the employer may not conduct an internal investigation unless it has established internal regulations that incorporate the legally required proce - dure; in that case, the complaint must be immediately referred to the Labour Board. Likewise, where the complaint is directed against per - sons deemed to represent the employer under Article 4 of the Labour Code, an internal investigation is pro - hibited, and the matter must always be investigated by the administrative authority. Outside these specific circumstances, there are no general legal prohibitions on conducting internal investigations in labour matters. 1.7 Other Cases When an investigation is neither mandatory nor pro - hibited, the employer may decide to initiate it in the exercise of its disciplinary powers or in compliance with the duty to protect and safeguard employees established in Article 184 of the Labour Code, in order to clarify relevant facts, prevent or mitigate legal, operational or reputational risks, and verify compli - ance with internal rules or compliance programmes. In this context, the employer’s decision is typically guided by an assessment of the seriousness, cred - ibility and potential impact of the facts reported, as well as by the need to ensure a safe and respectful working environment. Factors that may justify opening an investigation include:
weaknesses, reinforce internal controls and adopt corrective measures before conflicts escalate or turn into legal disputes. 2. Initial Steps 2.1 Communication to the Reporter and the Respondent In Chilean practice, both the reporter and the respond - ent have a right to be informed of the opening of an HR internal investigation, as part of the broader requirements of due process and respect for funda - mental rights applicable to internal disciplinary and investigative procedures. This applies both in general internal investigations and, with greater intensity, in investigations governed by the Karin Act. In general, internal investigations must respect prin - ciples of transparency, bilateral hearing and due process. This implies that both the reporter and the respondent should be informed, in a timely manner, that an investigation has been initiated, the general nature of the allegations and the procedural frame - work that will apply. While the law does not impose a fixed notice period in these cases, the information must be provided in a manner that allows the respond - ent to effectively exercise their right of defence, sub - ject always to confidentiality requirements. Under the Karin Act, the right to be informed is expressly reinforced. The reporter must be promptly informed whether the employer will conduct an inter - nal investigation or refer the matter to the Labour Board, and the respondent must also be informed in a clear and timely manner to ensure due process and the possibility of defence. Although the statute does not set a specific deadline for such communications, they must be made without delay, given their direct connection to the adoption of protective measures. Where the complaint is filed directly with the Labour Board, the employer must implement protective measures within three business days of receiving the authority’s notice, which, in practice, sets the timing of the relevant communications. In all cases, confi - dentiality must be strictly preserved, and anonymous complaints do not allow the formal procedure under
• the nature of the alleged conduct; • the positions of those involved; • the risk of recurrence; and • any prior incidents.
Likewise, initiating an internal investigation may serve as a preventive tool to demonstrate that the employer has acted diligently and in good faith, particularly in highly regulated environments or where future admin - istrative or judicial scrutiny is foreseeable. In these cases, internal investigations are part of the employ - er’s broader governance, risk management and com - pliance framework, allowing the organisation to detect
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