April 2023

Legal Alert: 40-Hour Workweek Law (Law No. 21,561)

Date of publication: April 26, 2023

Author: Cristián Vásquez – Alvarez Abogados

On April 26, 2023, Law No. 21,561, known as the “40-Hour Workweek Law”, was published in the Official Gazette, introducing a gradual reduction of the ordinary workweek in Chile.

  1. Gradual reduction of the workweek

The reduction to 40 hours per week will be implemented progressively over five years as follows:

  • Year 1: reduced to 44 hours (from April 26, 2024).
  • Year 3: reduced to 42 hours per week.
  • Year 5: final reduction to 40 hours per week.

Special working hours in the transportation sector will take effect only in the fifth year.

  1. Four-day workweek option

Employers and employees may voluntarily agree to distribute the 40-hour workweek into four working days and three rest days.

  1. Amendment to Article 22 of the Labor Code

The Labor Directorate gains broader powers to determine which workers are excluded from working hour limits, removing prior restrictions tied to specific job types.

  1. Compensation of overtime hours

Employers and employees may agree in writing that overtime hours be compensated with additional vacation days, up to five business days per year, to be used within six months after the cycle in which the overtime occurred.

  1. Flexibility for parents and caregivers

Parents of children under 12 and caregivers may start or end their workday two hours earlier or later to fulfill childcare or health-related responsibilities.

  1. Special weekly schedules for union members

Through collective agreements, companies and unions may agree on weekly schedules of up to 52 hours, applicable only to union members.

  1. Sector-specific provisions
  • Hospitality: 60-hour workweeks are eliminated.
  • Transportation: average of 40 weekly or 180 monthly hours, plus 6 additional rest days per year.
  • Part-time work: redefined as 30 hours per week or less.
  1. Exceptional work schedules

Approvals must be issued within 30 business days, ensuring compliance with occupational health and safety standards. Exceptional systems averaging up to 42 weekly hours may be authorized.

  1. Effective date

Provisions not directly linked to the reduction of working hours will take effect one year after publication (April 2024).

For further assistance with the implementation of Law No. 21,561, please contact our Labor Law team.

Alvarez Abogados.