CHILE Law and Practice Contributed by: Christian Alvarado and Agustín Alcalde, Clyde & Co Chile
7. Data Protection 7.1 Collecting Personal Data
• written warning, through a clear and precise written communication detailing the misconduct and the expected conduct going forward; • fine, only if expressly contemplated in the internal regulations and up to a maximum of 25% of the daily remuneration, with the legally mandated allo - cation of the amounts collected; and • disciplinary dismissal, where the grounds set out in the Labour Code apply, without entitlement to severance, and duly substantiated in the dismissal letter. An employee may not be sanctioned twice for the same conduct; however, a different sanction may be imposed if a subsequent internal investigation establishes additional infringing conduct. Any meas - ure adopted must be proportionate, properly docu - mented, and communicated in accordance with the applicable regulations. In the event that the investigation results in a discipli - nary dismissal, the employee retains the right to chal - lenge the termination before the labour courts, and may submit evidence aimed at rebutting or disproving the facts and conclusions set out in the investigation report, which does not bind the courts nor preclude full judicial review of the dismissal. 6.9 Other Measures In practice, and in compliance with the employer’s duty of protection, it is common for additional preven - tive or corrective measures to be adopted following an internal investigation, regardless of whether the allegations are ultimately substantiated. These may include: • organisational adjustments; • reinforcement of internal protocols; • mandatory training; • changes in the allocation of duties; or • protective measures aimed at preventing the recur - rence of risk situations. Such measures must be proportionate, non-punitive, and respectful of the fundamental rights of the individ - uals involved, and are grounded in the general duties of prevention and protection governing the employ - ment relationship.
The employer may collect personal data in the context of an internal investigation, provided that such pro - cessing complies with Law No 19,628. This requires: • duly informing employees of the purpose for which their data will be used; • obtaining legal authorisation or consent where applicable; and • using the information exclusively for the purposes that were communicated. In addition, pursuant to Article 154-ter of the Labour Code, the employer must keep confidential all infor - mation and personal data accessed in the context of the employment relationship, a duty further reinforced in investigations concerning workplace harassment, sexual harassment or violence at work. It should also be noted that, as of 1 December 2026, the new Personal Data Protection Law No 21,719 will further strengthen these requirements, recognis - ing employees as the owners of their personal data and employers as data controllers. This law imposes enhanced obligations regarding lawfulness, purpose limitation, proportionality and data security, expands employees’ data protection rights, and requires employers to update their internal policies, estab - lishing significant sanctions and potential liability for breaches of fundamental rights in the event of non- compliance. 7.2 Specific Rules In an internal investigation, the processing of personal data must comply with the personal data protection legislation and the duty of confidentiality set out in Arti - cle 154-ter of the Labour Code. This requires inform - ing employees of the purpose for which their data will be used, obtaining written authorisation where appli - cable and using the information exclusively for the stated purposes, with particular care given to sensitive data, especially in investigations involving workplace harassment, sexual harassment or violence at work. As of 1 December 2026, Law No 21,719 will further reinforce these requirements by imposing principles
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