On April 26, 2023, Law No. 21,561 was enacted in Chile, which mainly modifies the Labor Code with respect to the reduction of the ordinary working day to 40 hours per week.
The following is a brief summary of the main modifications to the Labor Code implemented by this new law.
- Gradual reduction of the ordinary working day: Reduction from 45 to 40 hours per week, without reduction of the agreed remuneration.
- Part-time contracts: Part-time employment contracts may not exceed 30 hours per week.
- Graduality of the entry into force of the law: All amendments contained in Law No. 21,561 will become effective 12 months after its publication in the Official Gazette (April 26, 2024).
a. The norms referring to the reduction of working hours will have a gradual implementation.
- Reduction of regular working hours by 44 hours per week = In the first year after the enactment of the law.
- Ordinary reduction of 42 hours per week = After the third year from the enactment of the law.
- Reduction of ordinary working hours 40 hours per week = At the fifth year from the enactment of the law.
b. The norms referring to the reduction of working hours of special contracts shall be applied within 5 years from the publication of this norm in the Official Gazette (April 26, 2028).
- Modification by the sole authority of the law regarding the reduction of working hours: The modifications established by this law shall be incorporated into individual contracts, collective bargaining agreements and internal regulations by the sole authority of the law.
- Time bands for the benefit of fathers and mothers: Those workers who are fathers, mothers or who have the care of children up to 12 years of age, and provide services that allow to anticipate or postpone the working day, will be entitled to a band of 2 terms of the working day, respectively.
- Workers excluded from the working day limit: Only those workers who provide services as managers, administrators, attorneys-in-fact with administrative authority and all those workers who, due to the nature of their work, work without immediate superior supervision, are excluded from the ordinary working day limit.
- New powers of the Labor Directorate: It is given new powers to qualify the circumstances under which workers would be excluded from the limitation of working hours; it modifies the procedure for exceptional working hours and will initiate programs for assisted compliance with the new labor regulations through voluntary inspection requests by micro, small and medium-sized companies, aimed at preventing or correcting labor infractions.
- Compensation of overtime for additional holidays: It may be agreed in writing that overtime will be compensated for up to 5 additional holidays, applying the same legal surcharge that would correspond to their payment, i.e., for each overtime hour, one and a half hours of additional holiday will correspond as compensation.
For more information on this law or other legal norms, please visit our Linkedin: