Chile has been on the forefront of financial progress and innovation in Latin America for a few years. Its fast-growing tech sector has led to the nation being dubbed “Chilecon Valley” by some trade specialists.
In the present day, there are over 8,000 IT corporations in Chile with this quantity set to extend because the 5G telecommunications community widens.
The Authorities’s progressive coverage continues with the brand new labor reform in Chile. In early April, Chile’s congress overwhelmingly handed a invoice lowering the nation’s work week from 45 to 40 hours.
This new legislation can have far-reaching results on each staff and staff throughout the South American nation.
Let’s dive into what the most recent labor reform in Chile means for enterprise and why having skilled legal representation in Chile is essential.

What does the labor reform in Chile imply for enterprise?
The Nationwide Congress handed the labor reform bill in Chile on April 11, 2023. The nation will expertise a progressive lower within the work week, going from 45 to 40 hours.
Chile will now be in keeping with nearly all of OECD member nations, which have a typical 40-hour work week.
Chile’s left-wing President Gabriel Boric mentioned it was a “pro-family mission that goals on the good residing of all”.
The adjustments embody a five-year transition interval which can cut back the working hours by one hour of labor per week per yr, ending in 2028.
Companies can undertake this variation instantly or earlier than the five-year grace interval. State-owned Copper big Codelco introduced they might implement the 40-hour work week by 2026.
There have been different important adjustments in labor reform in Chile in addition to this one. The invoice additionally acknowledges completely different versatile practices that corporations and staff can agree upon.
For instance, a 4 by 3 work mannequin – consisting of 4 10-hour days adopted by three days off.
Dad and mom of youngsters underneath 12 additionally profit by having the ability to arrange completely different begin and finish occasions with their staff.
These reforms additionally make sure that staff’ wages keep the identical and in circumstances the place particular job work hours can’t be decreased, further relaxation days are supplied in the course of the yr.
“This mission contemplates an extended craving as a result of since 1937 (the ILO) has been selling the gradual discount of the working day to 40 hours and in lots of nations, this already exists. Now it’ll be a actuality in Chile as a result of there was the need to make it occur.,” mentioned Chile’s Minister of Labor Jeannette Jara Román.
What number of hours is the work week in Chile?
At the moment, Chile’s normal work week is 45 hours. These are a few of the longest work hours on the planet.
Nonetheless, as a result of new labor reform in Chile, this will probably be decreased to 40 hours over the subsequent 5 years. The official work week will now be decreased by an hour a yr till it reaches 40 hours in 2028.
To place these adjustments in perspective, Egypt has a 53-hour work week whereas Norway staff common 34 hours per week. In Latin America, Brazil has a 44-hour work week and Colombia has lately decreased its work week to 42 hours.

A abstract of the numerous adjustments to labor reform in Chile
- 45 to 40 hours work week
- Versatile employment agreements
- Parental advantages
- No adjustments to wage
Here’s a abstract of the main adjustments to labor reform in Chile:
45 to 40 hours work week
The official working hours will probably be steadily decreased from 45 hours to 40 hours by 2028. It is going to occur over the subsequent 5 years with the working week being decreased by one hour per week per yr.
Versatile employment agreements
The brand new reforms permit staff to achieve versatile working agreements with their employers. For example, working 10-hour days, 4 days every week with three relaxation days.
Parental advantages
The legislation permits dad and mom with kids underneath 12 to have completely different entry and exit schedules primarily based on their scenario, which can contain beginning work earlier or later.
No adjustments to wage
The invoice additionally protects staff’ salaries. So the discount in complete working hours doesn’t equal a wage discount.
Associate with a authorized skilled to grasp labor reform in Chile
By partnering with a reliable authorized consultant, you may make sure that your online business follows all of the related legal guidelines and guidelines in Chile, and stop any points with authorized compliance.
Chile is present process many social and financial reforms, so your online business should keep on high of all of the authorized updates.
An skilled native authorized skilled may show you how to keep away from any cultural, monetary, and authorized points a brand new enterprise might face within the Chilean market.
Biz Latin Hub affords complete market entry and back-office companies in Chile, Latin America, and the Caribbean.
Biz Latin Hub can information you thru the labor reform in Chile
Our intensive attain positions us as the right accomplice to facilitate Chile enterprise funding, native recruitment, firm formation, and corporate legal services.
Contact our multilingual team to be taught extra about how we will help you do enterprise in Chile and the remainder of Latin America.
Get the most recent information and uncover extra about doing enterprise in Chile HERE.
