What is the 40-Hour Law?

The 40-Hour Law, implemented in Chile as of April 26th, 2024, gradually reduces the workweek from 45 to 40 hours.

How does it work?

  • Progressive Reduction: The workday will be gradually implemented, to be completed over a period of 5 years, reaching the definitive 40 hours.
  • Anticipation: Companies can choose to implement the 40-hour workweek ahead of time, without waiting for the gradual reduction. Currently, more than 5,400 companies in the country have done so, requesting the 40-hour seal (see below).
  • Flexibility: The law allows for the distribution of the workweek over 4 workdays followed by 3 days off (known as 4×3) and establishes mechanisms for shared responsibility to facilitate family reconciliation, such as:
  • Time bands, which allow differentiated entry and exit times so that mothers, fathers, and caregivers of children under 12 can anticipate or delay the start and/or end of their workday.
  • The possibility of compensating overtime hours with up to five additional days off (for every hour of overtime, one and a half hours of holiday time will be granted).

How to obtain the 40-Hour Seal?

The 40-Hour Seal is an acknowledgment by the Ministry of Labour for companies that have already implemented the workday reduction.

Benefits of the 40-Hour Seal:

  • Sponsorship by the Ministry of Labour for the promotion of activities.
  • Improvement of the company’s public image and talent attraction.

Where to find more information?

Full text of the law: https://www.gob.cl/noticias/publicacion-diario-oficial-ley-40-horas-reduccion-jornada-laboral-comienza-vigencia/

Ministry of Labour’s website: https://www.mintrab.gob.cl/

How to implement the 40-hour law in Chile?

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Can Auxadi help?

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.

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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.