Labor para empresas en Chile — CUBILLOS LAMA
Área 05 — Labor

Labor

We structure efficient labor relationships, minimize litigation risks and support you in restructurings, collective bargaining and court defense.

OGC approach

How we approach Labor

  • Strategy and Prevention: clear policies and solid contracts reduce litigation
  • Agile response to inquiries, unlimited questions: we are permanently available
  • Support for the HR team in decision-making

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Services

What our Labor advisory includes

Employment Contracts and Amendments
Policies and Regulations
Restructurings and Dismissals
Internal Labor Investigations (harassment, discrimination — Karin Law)
Training (management workshops, harassment prevention, telework, D&I)
Specialized coverage

Key services of our employment law practice

Implementing the Sexual, Workplace Harassment and Violence Prevention Protocol (Karin Law)

Law 21.643, known as the Karin Law and effective since August 1, 2024, requires every company with one or more workers to have a Sexual, Workplace Harassment and Violence Prevention Protocol aligned with ILO Convention 190. The protocol is not a one-size-fits-all document: it must be built on a company-specific psychosocial risk matrix, with concrete preventive measures tailored to your sector, headcount and geography.

We design tailored protocols that include the anti-harassment policy, reporting procedures, mechanisms for protecting and reinstating the complainant, safeguard measures during the investigation, psychosocial risk assessment, mandatory training plan and clauses to coordinate with the Internal Regulations (RIOHS) and individual employment contracts. We support roll-out with onboarding sessions for the board, HR leadership and middle management. The Chilean Labor Authority (Dirección del Trabajo) has been actively enforcing from day one and has already issued fines for missing or poorly applied protocols.

Internal investigation procedures under Decree 21

Decree 21 of the Ministry of Labor —the regulation that implements the Karin Law— sets strict deadlines and specific formalities for internal investigations triggered by harassment or violence reports. The company has 3 business days to adopt safeguard measures, 30 calendar days to complete the investigation and another 30 to implement corrective measures.

We advise at every stage: intake of the complaint, appointment of an investigator with the technical competence required by the regulation, proportionate safeguard measures, summons, interviews with complainant, respondent and witnesses, evidence collection, drafting of the final report with reasoned conclusions and notification to the parties. If the company decides to refer the case to the Labor Authority, we prepare the filing. Every step is documented so the investigation can withstand a labor inspection, a fundamental-rights protection lawsuit or a criminal complaint. Mishandling the investigation exposes the company to administrative penalties, labor damages and severe reputational harm.

Drafting and review of the Internal Regulations on Order, Hygiene and Safety (RIOHS)

Every company with 10 or more workers is required to have an Internal Regulations on Order, Hygiene and Safety (RIOHS). The Karin Law and recent reforms —weekly bonus pay, the 40-hour work week, the right to disconnect— require updating the RIOHS to cover new topics: harassment prevention protocol, technology-use policy, telework arrangements, complaint and disciplinary procedures, anti-discrimination policy and protection of employee personal data.

We draft or review your RIOHS to ensure compliance with formal requirements (filing with the Labor Inspection, internal publication, delivery to each employee) and substantive standards (proportionality of sanctions, procedural clarity, consistency with individual employment contracts and collective bargaining agreements). A poorly drafted or outdated RIOHS is the first source of challenges in labor litigation and Labor Authority audits. With each legal reform we provide an update annex so the document stays current without having to be rewritten from scratch.

Advisory on non-disciplinary terminations and severance calculation

Non-disciplinary terminations —mainly the "business needs" ground under Article 161 of the Labor Code— account for the bulk of labor disputes. A poorly documented termination, without real grounds or with formal defects, quickly becomes a wrongful-termination lawsuit with surcharges of 30% to 100% on top of seniority severance and, in sensitive cases, a fundamental-rights protection lawsuit with additional damages.

We advise before, during and after: analysis of the legal ground, drafting of the termination letter with the facts that justify the decision, accurate severance calculation (seniority capped at 11 years for contracts signed after 1981, payment in lieu of notice, prorated vacation, statutory bonus, weekly bonus pay and pending bonuses), preparation of the settlement agreement (finiquito), notarization or filing with the Labor Inspection, and litigation defense if the decision is challenged. For mass layoffs we structure plans that minimize exposure and coordinate social-security, tax and internal-communications aspects.

Defense against Labor Authority (DT) audits

The Chilean Labor Authority (Dirección del Trabajo, DT) can audit your company based on a worker complaint, on a routine inspection program or following a workplace accident. The audit can be on-site or document-based and ends with a report listing infractions subject to fines that scale with company size, plus deadlines to remedy them.

We advise on the immediate response: review of the facts, gathering of required documentation (RIOHS, attendance records, payroll book, contracts, settlement agreements, Karin Law protocol, training records), preparation of defense submissions, evidence presentation and accompaniment during inspector visits. If a fine is issued, we assess administrative remedies —reconsideration or judicial appeal within the 15-day deadline— and design the defense strategy. A well-managed audit can be closed without sanction; a poorly managed one leads to repeat fines, serial worker lawsuits and public exposure.

FAQ

Frequently asked questions on Chilean employment law for companies

What are a company’s obligations under the Karin Law?

Law 21.643 requires every company with at least one worker, regardless of size or industry, to have a Sexual, Workplace Harassment and Violence Prevention Protocol, update the Internal Regulations (RIOHS), include the protocol in employment contracts, deliver training, conduct a psychosocial risk assessment, appoint a person responsible for investigations and apply safeguard measures when a report is received. Once a complaint is filed, the company has 3 business days to adopt safeguard measures, 30 calendar days to complete the investigation and another 30 to implement corrective measures. Enforcement has been active since day one and the absence or poor application of the protocol leads to administrative fines and potential civil claims.

How can a company defend against a fundamental-rights protection lawsuit?

The labor protection action seeks aggravated damages (from 6 to 11 additional monthly salaries on top of seniority severance) when a violation of fundamental rights is alleged, such as non-discrimination, psychological integrity, freedom of opinion or privacy. Defense requires three pillars: documentary traceability proving the real, proportionate cause of the challenged act (termination, sanction or functional decision); a properly executed prior procedure (investigation, opportunity to be heard, written reasoning); and consistency with prior internal policies (RIOHS, code of ethics, protocols). We advise from policy design through litigation, including auditing critical decisions before they are taken. Prevention at decision time is worth more than the best procedural defense afterwards.

What risk does a termination based on business needs carry?

Article 161 of the Labor Code allows termination invoking business needs, but it requires objective, demonstrable facts: declining sales, reorganization, technological changes, automation or mergers. If the cause cannot be proven in court, the termination is deemed wrongful and the company must pay seniority severance increased by 30%. If the worker also alleges discriminatory motive, the door opens to a fundamental-rights protection lawsuit with surcharges of up to 11 monthly salaries. Risk increases with poorly structured mass layoffs, when the dismissed worker is replaced in the same role, or when the termination letter invokes generic grounds without backing facts. Documenting properly before and during dramatically reduces the risk.

How much does an indirect termination (autodespido) cost the company?

An indirect termination, or autodespido, is the worker’s right to end the employment contract when the company commits serious breaches (unpaid wages, mistreatment, unpaid social-security contributions, rights violations). In these cases the worker keeps the right to seniority severance capped at 11 years, payment in lieu of notice, prorated vacation and pending bonuses, plus a 50% to 100% surcharge depending on the ground invoked. If the ground is harassment or fundamental-rights violation, labor protection damages stack on top. In companies with long-tenured staff, an indirect termination can easily exceed 50 to 80 million Chilean pesos per worker. Preventing breaches is always cheaper than litigating.

What documents does a Labor Authority audit require?

Depending on its scope, a DT audit can request: current individual employment contracts and addenda, the payroll book, attendance records (electronic or manual time control), proof of wage and social-security payments, settlement agreements (finiquitos) for the past year, the Internal Regulations (RIOHS) with its filing receipt, the Karin Law harassment-prevention protocol with proof of dissemination, the psychosocial risk assessment, training records, service contracts with third parties, telework annexes if applicable, and certificates of workplace accidents and occupational diseases. The company typically has between 1 and 5 business days to provide the documentation. Keeping these records up to date and centrally archived is the first line of defense against administrative fines.

Self-assessment

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