Leave in Chile

Managing employee leave and vacation entitlements is a critical aspect of compliance and employee satisfaction when operating in Chile. Understanding the specific requirements set forth by Chilean labor law is essential for businesses employing local staff, whether through a direct presence or via an Employer of Record. These regulations cover various types of leave, ensuring employees receive mandated time off for rest, illness, family events, and national observances.

Navigating the nuances of vacation accrual, public holiday schedules, sick leave procedures, and parental leave benefits requires careful attention to detail. Chilean law provides clear guidelines on minimum entitlements, payment obligations, and the processes involved in requesting and approving different forms of leave. Adhering to these standards is key to maintaining legal compliance and fostering a positive working relationship with employees in the country.

Annual Vacation Leave

In Chile, employees are entitled to a minimum amount of paid annual vacation, known as "feriado anual". This entitlement accrues over time and is a fundamental right for all workers under standard employment contracts.

• Minimum Entitlement: Employees are entitled to 15 business days of paid annual vacation per year after completing one year of service with the same employer.
• Accrual: The right to vacation accrues proportionally during the first year of service, but it can only be taken once the full year is completed. After the first year, the 15 business days accrue annually.
• Calculation: Business days exclude Sundays and public holidays.
• Accumulation: Employees can accumulate up to two periods of annual vacation (30 business days). Any vacation days exceeding this limit must be taken before the end of the period in which they were accumulated.
• Agreement: The timing of the vacation must be agreed upon between the employer and the employee. If no agreement is reached, the employer generally has the right to determine the period, provided it is within the legal framework and the employee has completed the required service period.
• Payment: The employee must receive their regular salary during the vacation period. Additionally, a vacation bonus ("bono de vacaciones") may be stipulated in collective bargaining agreements or individual contracts, although it is not a statutory requirement.

Employees working in regions with difficult access or specific climatic conditions (Regions XI, XII, and the Province of Palena in Region X) are entitled to 20 business days of annual vacation per year.

Public Holidays

Chile observes a number of public holidays throughout the year. Employees are generally entitled to a paid day off on these dates. If an employee is required to work on a public holiday, they are typically entitled to premium pay, often double their regular wage, depending on the sector and specific circumstances.

Here is a list of anticipated public holidays in Chile for 2025:

Date	Holiday Name
January 1	New Year's Day
April 18	Good Friday
April 19	Holy Saturday
May 1	Labour Day
May 21	Navy Day
June 2	Battle of Arica (Regional - Arica y Parinacota)
June 29	Saint Peter and Saint Paul
July 16	Our Lady of Mount Carmel
August 15	Assumption of Mary
September 18	National Independence Day
September 19	Army Glories Day
September 20	"Fiestas Patrias" Holiday
October 12	Columbus Day
October 31	Reformation Day
November 1	All Saints' Day
December 8	Immaculate Conception
December 25	Christmas Day

Note: Some holidays may be moved to a Monday if they fall on a weekend, or additional "sandwich" days may be declared non-working days by the government, though this is not guaranteed.

Sick Leave

Employees in Chile are entitled to sick leave when they are unable to work due to illness or injury. This leave is supported by a medical certificate ("licencia médica").

• Certification: Sick leave must be certified by a registered medical professional (doctor, dentist, or midwife). The medical certificate specifies the duration of the leave.
• Payment: During sick leave, employees receive a subsidy for temporary disability ("subsidio por incapacidad laboral"). This subsidy is paid by the employee's health insurance provider (either FONASA, the public system, or an ISAPRE, a private system) or the relevant social security institution, not directly by the employer.
• Waiting Period: Generally, there is no waiting period for the subsidy for leave lasting more than 10 days. For leave lasting 10 days or less, the subsidy is paid starting from the fourth day, meaning the first three days are unpaid unless otherwise stipulated in a collective agreement or individual contract.
• Employer Responsibility: The employer's primary responsibility is to process the medical certificate and submit it to the relevant health insurance or social security institution within the required timeframe. The employer must also continue to pay social security contributions during the sick leave period.
• Duration: The duration of sick leave is determined by the medical certificate. There are limits on the maximum duration of continuous or accumulated sick leave that can be subsidized, after which a disability assessment may be required.

Parental Leave

Chilean law provides comprehensive parental leave benefits, primarily focused on maternity leave but also including paternity and adoption leave.

• Maternity Leave ("Descanso de Maternidad"):
  • Consists of 6 weeks (42 days) before the expected delivery date and 12 weeks (84 days) after childbirth.
  • Total duration is 18 weeks (126 days).
  • During this period, the employee receives a subsidy paid by the social security system, calculated based on her average earnings.
• Postnatal Parental Leave ("Permiso Postnatal Parental"):
  • This is an extension of maternity leave that can be taken after the initial 12 weeks postnatal leave.
  • The mother has two options:
    1. Take 12 weeks full-time, receiving a subsidy based on her full average earnings (with a cap).
    2. Take 18 weeks part-time (working half days), receiving a subsidy for the half-day not worked (with a cap).
  • This leave can be transferred partially or fully to the father.
• Paternity Leave ("Permiso Paternal"):
  • Fathers are entitled to 5 business days of paid leave upon the birth of a child. This leave can be taken continuously from the day of birth or distributed within the first month following the birth.
  • This is separate from the possibility of the father taking the Postnatal Parental Leave transferred by the mother.
• Adoption Leave:
  • Employees adopting a child under 18 years old are entitled to adoption leave, which is equivalent to the postnatal leave (12 weeks) and the postnatal parental leave (12 or 18 weeks), starting from the date the child is entrusted to them by court order.
  • The same subsidy and transfer rules apply as for biological parents.
• Child Care Leave ("Permiso de Alimentación"):
  • Mothers are entitled to two hours per day to feed their child until the child reaches two years of age. This time can be taken in various ways (e.g., one hour twice a day, two hours at once, or arriving later/leaving earlier) by agreement with the employer. This right can also be transferred to the father.

Other Types of Leave

Beyond the main categories, Chilean labor law and common practice recognize other types of leave for specific circumstances.

• Bereavement Leave ("Permiso por Fallecimiento"):
  • Employees are entitled to 7 calendar days of paid leave in the event of the death of a child or spouse.
  • Employees are entitled to 3 calendar days of paid leave in the event of the death of a parent or sibling.
• Leave for Civil Union ("Permiso por Acuerdo de Unión Civil"):
  • Employees are entitled to 5 business days of paid leave upon entering into a civil union.
• Study Leave:
  • While not a statutory entitlement for all employees, study leave may be granted based on collective bargaining agreements, individual contracts, or employer policy.
• Sabbatical Leave:
  • Similar to study leave, sabbatical leave is not a statutory right but may be offered by employers, particularly in academic or research fields, or negotiated in collective agreements.
• Union Leave ("Permiso Sindical"):
  • Union leaders are entitled to a certain number of hours of paid leave per week or month to perform union duties, as stipulated by law and collective bargaining agreements.
• Leave for Jury Duty or Witness Testimony:
  • Employees are entitled to necessary paid time off to fulfill civic duties such as serving on a jury or testifying in court.

Understanding and correctly implementing these various leave policies is crucial for compliance and effective workforce management in Chile.