Understanding Chile's Working Hours and Employment Regulations

Maximum Working Hours and Overtime Legislation in Chile

Chilean labor law provides comprehensive protection for workers' rights, covering areas such as reasonable working hours, overtime compensation, leave entitlements, social security, and benefits. The legislation outlines requirements for employment contracts, termination procedures, severance payments, minimum wage standards, and social security contributions to ensure fair treatment of employees.

Standard Working Hours Framework

According to Articles 22 and 28 of the Chilean Labor Code, the standard workweek must not exceed 44 hours, with a maximum of 10 hours per day. Employers may schedule work across 5-6 days weekly depending on operational requirements. A significant reform known as the 40-hour law took effect on April 26, 2024, initiating a gradual reduction toward a 40-hour maximum workweek by 2028. The implementation timeline includes:

April 26, 2024: Reduction from 45 to 44 hours weekly
April 26, 2026: Further reduction to 42 hours weekly
April 26, 2028: Final implementation of 40-hour maximum workweek

The legislation also permits flexible averaging of hours across four-week periods, subject to specific conditions: weekly hours cannot exceed 45, and total hours including overtime must not surpass 52 weekly. Parents or guardians of children under 12 may adjust their schedules by up to two hours daily, though this flexibility doesn't apply to certain roles requiring continuous presence or teamwork.

Night Work Regulations

Night work in Chile, defined as work between 10:00 PM and 7:00 AM, carries specific compensation requirements. Article 28 mandates a night shift premium, typically 25% above base salary, though collective agreements may establish different rates. For example:

Component	Calculation
Monthly Base Salary	500,000 CLP
Monthly Hours	180 hours
Hourly Rate	2,777.78 CLP
Night Premium (25%)	694.45 CLP
Total Night Rate	3,472.23 CLP/hour

Overtime Compensation Structure

Overtime refers to work exceeding contractual or statutory weekly limits of 44 hours. Such work requires voluntary written agreement between employer and employee, valid for up to three months with renewal options. Daily overtime is capped at two hours, with a weekly maximum of 10 hours. Compensation must be at least 50% above normal hourly rates, though higher premiums may be negotiated.

Employment Contract Requirements

Chilean employment contracts must be documented in writing to ensure clarity and legal protection. While bilingual versions are acceptable, the official copy must be in Spanish. Registration with labor authorities is mandatory for official recognition. Contracts typically include:

Location and date of agreement
Parties' identification details including RUT numbers
Job responsibilities and work location
Work schedule arrangements
Compensation and benefits structure
Contract duration for fixed-term agreements
Additional mutually agreed terms

Four primary contract types exist:

Indefinite-term contracts: Ongoing employment without predetermined end date
Fixed-term contracts: Specific duration from one day to one year (extendable to two years for managers/technical staff)
Part-time contracts: Maximum 30 weekly hours with proportional rights
Project-based contracts: Tied to specific tasks or milestones, common in construction

Companies with over 25 employees must maintain at least 85% Chilean personnel, counting foreign spouses of Chileans and five-year residents as Chilean for quota purposes. Professional technical staff are exempt from this requirement.

Probation Period Considerations

Unlike many jurisdictions, Chile doesn't mandate statutory probation periods. Employers often use short-term fixed contracts as practical alternatives for evaluating new hires. Early termination during such contracts requires payment for the full contract period. Successful employment relationships typically transition to indefinite contracts after initial periods.

For international companies navigating these regulations, SailGlobal offers comprehensive support in Chilean payroll management and compliance implementation.

Chile Labor Law Guide: Working Hours, Contracts & Employment Regulations