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ENLegal source: Código del Trabajo
Hiring in Chile requires a written employment contract, payment of pension, health, and unemployment insurance contributions, and compliance with proportionality rules if hiring foreign workers. Chilean labor law is markedly protective of employees — termination generally requires cause and severance, unlike more flexible jurisdictions.
Hiring your first employee in Chile triggers a set of obligations that go beyond the individual employment contract — something that surprises foreign companies used to more flexible labor frameworks.
Is a written employment contract mandatory?
The law requires a written employment contract within a short period from the start of the employment relationship, with mandatory minimum clauses covering pay, working hours, and duties.
What contributions must the employer pay?
The employer must declare and pay pension, health, and unemployment insurance contributions on the employee’s salary — these are not optional benefits, but legal obligations with monthly filing deadlines.
Are there special rules for hiring foreign workers?
If the company also hires foreign workers to work in Chile, there are additional rules on the proportion of national versus foreign workers on staff, with exceptions depending on company size.
What’s the most common mistake among new companies?
Treating the employment relationship in Chile with the same contractual flexibility as in the home jurisdiction — for example, assuming a termination doesn’t require cause or severance. Chilean labor law is markedly protective of workers, and not knowing this creates legal liabilities that far exceed the cost of structuring it properly from the start.
Frequently Asked Questions
Yes, within a short period from the start of the employment relationship.
Pension, health, and unemployment insurance contributions on the salary.
Yes, Chilean labor law generally requires cause and severance.
How Izquierdo Deramond Consultores Can Help
At IDC we manage the full back office of foreign companies in Chile — accounting, payroll, labor compliance, and operational filings — so you can focus on your business. If you’d like to delegate this part, let’s talk or reach us on WhatsApp.
Legal notice: This article is provided for general informational purposes only. It does not constitute legal, tax, accounting, or other professional advice, and should not be relied upon as a substitute for professional advice tailored to your specific situation. Cited rules may change; always verify the current version. To discuss your case, please contact Izquierdo Deramond Consultores.