Six years after they were proposed, Congress has approved amendments (Law 21,561) to Chile’s Labor Code that will, among other things, gradually reduce the maximum normal workweek from 45 to 40 hours (with no loss in pay) and introduce new working time options, such as the averaging of weekly working time, a shorter workweek, flexible start times for parents of small children and the ability to trade overtime pay for paid annual leave. These changes aim to improve work flexibility and enhance work/life balance. The law was published in the Official Gazette on April 26, 2023.
Employers may adopt the workweek changes sooner than the phased-in maximum deadlines. While 35% of companies surveyed by WTW in Chile already observe a 40-hour workweek (in offices), 40% have a 45-hour workweek (in offices). Companies should analyze the new requirements and options and consider the effects on their working time policies.