During the year, there will be different significant transformations in the workplace, with the entry into force of various laws and regulatory changes that will require employers, employees and human resources management areas to adapt to new functionalities.

1. January: work-life balance and personal life

Since January 29, the Law on the Reconciliation of Personal, Family and Work Life (Law No. 21,645) has established a substantial change in the work dynamic. It requires employers to offer teleworking or remote work to employees who are caregivers of children under 14 years of age or, regardless of the age of the person being cared for, who are in charge of persons with disabilities or in a situation of severe or moderate dependency.

In addition, it recognizes the preferential right of caregivers of children under 14 years of age or those who are in charge of minors under 18 years of age with disabilities or in a situation of severe or moderate dependency to take vacations during the school periods defined by the MINEDUC. In this way, flexibility is provided to the aforementioned workers so that they can balance their work and family responsibilities.

It also gives said collaborators the possibility of temporarily adjusting their work schedules or the distribution of daily and weekly hours to adapt to the care needs during those periods.

2. April: 40-hour workday

Starting April 26, companies will face the first phase of reducing the working week from 45 to 44 hours. This change, known as the 40-Hour Law, marks the beginning of a process that will reduce the working week to 42 hours in 2026 and to 40 hours in 2028.

This legislation not only involves adjustments to working hours, but also introduces work adaptability measures. For example, workers and employers may, through a written agreement and on an exceptional basis (once a year), agree that overtime hours will be compensated with five days of holiday.

In addition, the option of implementing a distribution of four days of work for three days of rest, known as a 4×3 workweek, is contemplated, exclusively for companies that already comply with the 40-hour workweek.

The 40-Hour Law has given rise to a large number of questions among workers about how it will affect their workday. For this reason, it is essential that organizations clarify to their collaborators how this law will be carried out. For example:

  • Workers with honorarium receipts: their working hours will not be reduced, since the legislation only applies to those with contracts governed by the Labor Code.
  • Effects of a company that does not comply with the law on the reduction of working hours: a claim can be filed with any Labor Inspection or a lawsuit can be filed directly before the Labor Courts.
  • Impossibility of reducing remuneration by reducing the weekly working day to 44 hours: the application of this law may under no circumstances represent a reduction in the remuneration of the workers benefited.

3. May: strengthening of Unemployment Insurance

Published on October 31, 2023 under number 21,628, the Law strengthens the benefits provided by the Unemployment Insurance and makes the requirements for access to its benefits more flexible. Some of its modifications came into force in December 2023 and the rest will do so in May 2024. Its regulations provide an essential strengthening of the benefits offered by this insurance.

First, the replacement rate for the second month of benefits charged to the Individual Unemployment Account (CIC) was increased from 55% to 60% of the respective average wages. In addition, the requirements for access to the Insurance benefits were made more flexible, reducing the requirement for the number of contributions registered in the Individual Unemployment Account to access the benefits charged to said account. The law also provides for greater flexibility and improvements in benefits in situations where a state of constitutional exception is declared due to a public calamity, a health alert or a declaration of an area affected by a catastrophe. These measures seek to provide more solid support to workers in times of economic adversity or emergency situations.

4. July:

Increase in the minimum monthly wage

Starting July 1, the minimum monthly wage in Chile will experience a significant increase, going from the current $460 thousand to $500 thousand for workers over 18 years old and up to 65 years old.

This increase was the result of a negotiation between the Government and the Central Unitary Workers’ Union (CUT) to define salary increases. Not only was the increase in question achieved, but a subsidy was also designed to support micro, small and medium-sized enterprises (MSMEs) to comply with the readjustment.

This subsidy, which varies according to the size of the company, will be valid until April 2025 and seeks to benefit around 180 thousand MSMEs and Cooperatives.

Measures against workplace harassment

On January 15, 2024, Law No. 21,643 was published, which modifies the Labor Code and other legal bodies regarding the prevention, investigation and punishment of workplace harassment, sexual harassment or violence at work. In this way, the so-called “Karin Law”, in response to the case that affected TENS Karin Salgado, will come into force on August 1.

Its regulation incorporates a gender approach and the obligation to create prevention protocols on violence and harassment in the workplace.

The protocols will be developed with the technical assistance of the mutual societies. In addition, it introduces the concept of “violence at work”, referring to violence exercised by third parties outside the employment relationship, such as clients, suppliers, users, among others. The above implies that companies must take preventive measures against any violent action by users and clients towards their workers.

Conclusions

While challenging, the aforementioned legislative changes offer the opportunity to improve working conditions, promote work-life balance, and strengthen worker protection in various aspects. Adaptability and efficient management will be key to ensuring a successful transition in this year of labor transformations.

As these laws and changes progress during 2024, or as there are new developments regarding them, Buk will keep you informed so that you are always up to date with labor legislation.