40-Hour Law in Chile

The main regulations and relevant aspects to be taken into consideration with the entry into force of the 40-Hour Law are the following:

1. Progressive reduction to 40 hours by 2028

On 26 April 2024, the maximum ordinary weekly working day was reduced from 45 to 44 hours per week.

The other reductions to reach the maximum working day of 40 hours per week will be governed by the following schedule:

2. The category of workers exempted from the working day limit is reduced (Article 22)

The new rules limit workers exempt from ordinary working hours to:

i. Managers, administrators and proxies with administrative powers.
ii. Workers who provide services without immediate superior supervision due to the nature of the work performed.

In the event of a dispute between the parties regarding the applicability of this exclusion, the respective Labour Inspector shall decide, whose decision may be appealed in court.

The DT, through opinion No. 84/04, of February 6, 2024, has indicated that:

• • • It should be considered that the general rule is that workers are subject to a limitation of working hours.
    • The exception of the limit on working hours based on the criterion of location or geographical location of the provision of services is no longer applicable.
    • Deputy management positions may be considered as workers excluded from the limitation of working hours as they have administrative powers, in accordance with article 4 of the Labor Code.
    • There is an update in the doctrine in relation to what should be understood by immediate superior audit, adding, in the case that the prosecution is carried out by “persons of higher rank or hierarchy within the company or establishment”, the case that this audit is carried out by “automated means without human intervention”.

3. Overtime and its compensation

The possibility of compensating overtime with additional vacation days is contemplated. This is limited to five additional working days of rest per year, which must be used by the worker within six months of the period in which the overtime originated, giving 48 hours’ notice.

On this matter, the DT in opinion No. 81/02, of February 1, 2024 has established that, if an agreement is not reached in relation to the compensation of overtime, the parties must follow the general rules, that is, these hours must be paid with a legal surcharge.

In relation to exceptional working days, the new regulation empowers the labor authority to establish shifts of 42 hours on a weekly average, which will entitle workers to additional vacation days in proportion to the overtime of the day, which can also be compensated monetarily by agreement of the parties.

4. Flexibility of the working day in four-week cycles

The Law allows the distribution of the weekly working day to be carried out by calendar week; or, based on weekly averages over periods of up to four weeks.

Only by agreement of the worker and the employer, the working day may be distributed based on a weekly average of 44 hours in a cycle of up to four weeks, as long as: they do not exceed 45 ordinary hours per week, they do not extend this limit of hours for more than two continuous weeks and that the agreed overtime hours do not exceed 52 hours per week (including ordinary working hours and overtime).

5. Time band for parents with children under 12 years of age

The possibility is incorporated that workers who are mothers, fathers or caregivers of children under 12 years of age, can adapt their working days by up to two hours, advancing or delaying their entry to work by up to one hour. This possibility does not apply to certain occupations such as: customer service or jobs that require the cooperation of equipment or emergency services.

For more information, please contact:  Luis Parada Partner lparada@dlapiper.cl