Legal Alert: New Labor Inclusion Law (Law No. 21,690)

Author: Cristián Vásquez – Alvarez Abogados

On August 24, 2024, Law No. 21,690 was published in the Official Gazette, introducing a new Labor Inclusion Law aimed at expanding and strengthening job opportunities for people with disabilities and recipients of disability pensions.

1. Increase in the hiring quota

The mandatory quota rises from 1% to 2%, but this increase will take effect only once companies and public entities reach 80% compliance with the current 1% requirement.
The Ministry of Social Development must issue an annual report on compliance levels.

The obligation applies to work units with more than 100 employees, and the Labor Directorate will maintain a public registry and strengthen its inspection staff.

2. Expanded scope of beneficiaries

The obligation now extends to include recipients of disability pensions, regardless of their social security system.

3. Alternative compliance through contractors and subcontractors

Workers with disabilities or recipients of disability pensions hired by contractors will count toward compliance only if they effectively perform services for the principal company.

Contractor companies subject to the same legal obligation may be counted for another principal company’s compliance only for contracts exceeding their own workforce threshold.

4. Reform of the donation mechanism

Companies that cannot meet the hiring quota for justified reasons may comply by donating the equivalent of 24 monthly minimum wages for each unfilled position.

The new law seeks to decentralize and diversify donations by:

• Expanding the type of eligible recipient entities;
• Limiting donations to no more than 50% to a single organization;
• Requiring at least one donation to an organization outside the Metropolitan Region.

The Ministry of Labor will issue regulations detailing the annual reporting format and eligibility requirements for recipient organizations.

5. Workplace inclusion protocol

Companies must implement a workplace inclusion protocol consistent with the principles of Law No. 20,422, ensuring equality and social inclusion.

6. Supervision and fines

Fines will now be applied monthly and per missing hire, instead of a single sanction, significantly increasing their deterrent effect.

7. Effective date

• The 2% quota will take effect in January following the Ministry of Social Development’s report certifying 80% compliance.
• The new fine regime will become effective in January 2025.

For further guidance on implementing Law 21,690, please contact our Labor Law team.

Alvarez Abogados.