Navigating the complexities of labor law is crucial for companies operating internationally. In Chile, working time regulations are governed by the Labor Code, which sets clear standards for daily and weekly hours, overtime, rest periods, and other related aspects. Understanding and adhering to these rules is essential for compliance, ensuring fair treatment of employees, and avoiding potential legal issues.
Chilean labor law has undergone recent changes aimed at progressively reducing the standard workweek. Employers must stay informed about the current requirements to structure work schedules correctly and manage employee compensation accurately, particularly concerning overtime and special working conditions.
Standard Working Hours and Workweek Structure
As of July 1, 2024, the standard maximum ordinary workweek in Chile is 42 hours. This is part of a phased reduction from 45 hours, which will eventually reach 40 hours per week by April 26, 2028. The 42 hours can be distributed over no less than five and no more than six days per week.
The maximum daily ordinary working time is generally 10 hours. However, the distribution of the 42 hours can be flexible, provided the average weekly hours over a four-week period do not exceed 42.
| Standard Workweek Limit | Maximum Daily Ordinary Hours | Minimum Workdays per Week | Maximum Workdays per Week |
|---|---|---|---|
| 42 hours | 10 hours | 5 days | 6 days |
Overtime Regulations and Compensation
Overtime work is permitted in Chile under specific conditions and must be agreed upon in writing between the employer and the employee. It is generally allowed only when necessary to address temporary situations or urgent needs of the company.
The maximum amount of overtime permitted is two hours per day. Overtime hours must be compensated with a surcharge of at least 50% over the employee's ordinary hourly wage. This means each overtime hour is paid at 1.5 times the regular rate.
| Overtime Limit (Daily) | Minimum Overtime Compensation Rate |
|---|---|
| 2 hours | 50% surcharge (1.5x regular rate) |
Overtime hours must be recorded separately, and the compensation must be clearly itemized on the employee's payslip.
Rest Periods and Break Entitlements
Chilean law mandates specific rest periods for employees. A minimum daily break for lunch or rest is required, which cannot be less than 30 minutes. This break is generally not considered part of the working day, meaning the employee is not paid during this time.
In addition to the daily break, employees are entitled to a weekly rest period. This rest period must be at least 48 consecutive hours and must include Sunday. For employees working on Sundays or holidays due to the nature of their work, compensatory rest days are required.
| Type of Rest Period | Minimum Duration | Included in Working Day? |
|---|---|---|
| Daily Break | 30 minutes | Generally No |
| Weekly Rest | 48 consecutive hours | Yes |
Night Shift and Weekend Work Regulations
Work performed during the night (typically defined as between 9 PM and 6 AM) or on weekends (specifically Sunday) and public holidays may have specific considerations, although the standard overtime rules apply if hours exceed the ordinary limits.
Employees who regularly work on Sundays and holidays are typically entitled to compensatory rest days during the week. The law aims to ensure that employees receive adequate rest regardless of their work schedule. Specific industries or roles may have different regulations regarding night and weekend work, often established through collective bargaining agreements.
Working Time Recording Obligations
Employers in Chile are legally required to maintain accurate records of their employees' working hours. This includes ordinary hours, overtime hours, and rest periods. The primary method for recording working time is through a time clock or an electronic timekeeping system.
The record must show the exact time each employee starts and finishes their work each day. This documentation is crucial for demonstrating compliance with working hour limits, overtime regulations, and rest period entitlements. These records must be available for inspection by the labor authorities. Failure to maintain proper timekeeping records can result in significant penalties for the employer.
