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 consultants.

At present, 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 could have far-reaching results on each employees and workers 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 according to the vast majority of OECD member nations, which have a normal 40-hour work week.

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

The adjustments embody a five-year transition interval which is able to cut back the working hours by one hour of labor per week per yr, ending in 2028. 

Companies can undertake this variation instantly or prior to 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 important adjustments in labor reform in Chile in addition to this one. The invoice additionally acknowledges totally different versatile practices that firms and workers can agree upon. 

For instance, a 4 by 3 work mannequin – consisting of 4 10-hour days adopted by three days off. 

Mother and father of youngsters below 12 additionally profit by having the ability to arrange totally different begin and finish instances with their workers. 

These reforms additionally be sure that employees’ wages keep the identical and in circumstances the place particular job work hours can’t be decreased, further relaxation days are offered 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 nations, 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.,” stated 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 number of the longest work hours on the planet. 

Nevertheless, as a result of new labor reform in Chile, this might be decreased to 40 hours over the subsequent 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 adjustments 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 just lately decreased its work week to 42 hours. 

A abstract of the numerous adjustments to labor reform in Chile 

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

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

45 to 40 hours work week

The official working hours might be steadily decreased from 45 hours to 40 hours by 2028. It would occur over the subsequent 5 years with the working week being decreased by one hour per week per yr. 

Versatile employment agreements

The brand new reforms permit workers to succeed in versatile working agreements with their employers. As an illustration, working 10-hour days, 4 days per week with three relaxation days. 

Parental advantages

The legislation permits dad and mom with kids below 12 to have totally different entry and exit schedules based mostly on their scenario, which can contain beginning work earlier or later.

No adjustments to wage

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

Companion with a authorized skilled to grasp labor reform in Chile

By partnering with a reliable authorized consultant, you possibly can be sure that your small business 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 small business should keep on high of all of the authorized updates. 

An skilled native authorized skilled may also enable you to 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 crew to be taught extra about how we will help 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.