An evaluation of the 40-hour work week

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.

Right this moment, there are over 8,000 IT firms 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 decreasing the nation’s work week from 45 to 40 hours.

This new legislation can have far-reaching results on each employees 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 authorized illustration 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 step with nearly all of OECD member nations, which have a normal 40-hour work week.

Chile’s left-wing President Gabriel Boric mentioned it was a “pro-family venture that goals on the good residing of all”.

The modifications embrace 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 alteration instantly or ahead of the five-year grace interval. State-owned Copper large Codelco introduced they’d implement the 40-hour work week by 2026. 

There have been different vital modifications in labor reform in Chile moreover this one. The invoice additionally acknowledges completely different versatile practices that firms 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 instances with their staff. 

These reforms additionally be sure that employees’ wages keep the identical and in circumstances the place particular job work hours can’t be decreased, additional relaxation days are supplied in the course of the yr.

“This venture 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 international locations, this already exists. Now it’s going to be a actuality in Chile as a result of there was the desire to make it occur.,” mentioned Chile’s Minister of Labor Jeannette Jara Román.

What number of hours is the work week in Chile? 

Presently, Chile’s customary work week is 45 hours. These are a few of the longest work hours on the earth. 

Nevertheless, as a result of new labor reform in Chile, this will likely be decreased to 40 hours over the following 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 modifications in perspective, Egypt has a 53-hour work week whereas Norway employees common 34 hours per week. In Latin America, Brazil has a 44-hour work week and Colombia has not too long ago decreased its work week to 42 hours. 

A abstract of the numerous modifications to labor reform in Chile 

• 45 to 40 hours work week
• Versatile employment agreements
• Parental advantages 
• No modifications to wage 

Here’s a abstract of the main modifications to labor reform in Chile:

45 to 40 hours work week

The official working hours will likely be steadily decreased from 45 hours to 40 hours by 2028. It’s going to occur over the following 5 years with the working week being decreased by one hour per week per yr. 

Versatile employment agreements

The brand new reforms enable staff to achieve versatile working agreements with their employers. As an illustration, working 10-hour days, 4 days every week with three relaxation days. 

Parental advantages

The legislation permits dad and mom with youngsters underneath 12 to have completely different entry and exit schedules primarily based on their scenario, which can contain beginning work earlier or later.

No modifications to wage

The invoice additionally protects employees’ salaries. So the discount in complete working hours doesn’t equal a wage discount. 

Accomplice with a authorized skilled to know labor reform in Chile

By partnering with a reliable authorized consultant, you possibly can be sure that your corporation follows all of the related legal guidelines and guidelines in Chile, and forestall any points with authorized compliance.

Chile is present process many social and financial reforms, so your corporation should keep on prime of all of the authorized updates. 

An skilled native authorized skilled may also enable you 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 providers in Chile, Latin America, and the Caribbean.

Biz Latin Hub can information you thru the labor reform in Chile

Our in depth attain positions us as the proper associate to facilitate Chile enterprise funding, native recruitment, firm formation, and company authorized providers. 

Contact our multilingual staff to be taught extra about how we can assist 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.