Chile Employment Law: Electronic Labor Documents

Written by Rodrigo Cortés, Senior Lawyer

In recent years, the Chilean government has moved to introduce technological tools and software applications to a wide variety of government services.

Labor law has closely followed this trend towards adopting technology. In 2019, the policy document “Labor Modernisation Agenda” was released by the Chilean government, which seeks to incorporate technology into the various procedures currently required by the Chilean labor legislation.?

In this context, on July 27, 2021, Law No. 21,361 was published (the “Law”), which recognises the legal force of labor documents in electronic formats, such as settlements, resignations, and mutual agreements.

Legal Force of Electronic Documents

The Law modifies article 177 of the Chilean Labor Code, establishing the legal force of settlements, resignations, and mutual agreements electronically signed by the employee on the website of Direccion del Trabajo, the labor agency of Chile.

Settlement and Payment

?The Law also modifies article 162 of the Labor Code, establishing the obligation of the employer to inform the employee, in the Notice of Termination of the Contract, if the employer will grant and pay the employment settlement either in person or electronically. Also, the Notice must expressly indicate that it is voluntary for the employee to accept, sign, and receive the payment electronically and that the employee can always choose to appear in person before a minister of faith. Additionally, the employer must inform the employee that he may formulate a Reservation of Rights when signing the settlement, which will not affect the payment of the undisputed amounts.?

If the employee rejects this modality, the employer will be obliged to make the settlement available to him in person within the legal term (ten business days) or, if this term has expired while the employee's electronic subscription is pending, within three business days from the rejection.

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Procedure

The Law states that the?Director of Labor?should enact, within ninety days from the publication of the Law, a resolution (the “Resolution”) regulating the procedure for the “correct functioning?of the ratification of settlement, resignation, and mutual agreements in the Direccion del Trabajo’s electronic portal".?

The Resolution should also address the applicable regulation in case of a Reservation of Rights formulated by the employee and the procedure by which the employer must be required to pay and comply with the obligations established in the electronic settlement.

?Finally, the Law states that the receipt, collection, and the safeguard of the corresponding payments until they are delivered to the respective employee will correspond to the Treasury Service or other entities dedicated to such activities according to the regulations in force. The Treasury Service and the entities must provide the electronic means to ensure the correct execution of the payment without generating a cost for the worker.

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Entry into force

The Law will enter into force on the date of publication of the Resolution.?

Need assistance with the implications of the change to the Chilean Labor Code? Get in touch with our experienced team today.

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