10 Documents Every Company Must Have in Each Employee's File

Employment Documentation: The 10 Documents Every Company Must Have in Each Employee's File

Inspections, Burden of Proof, and Corporate Risk

A 25-person company receives a notification: Labor Directorate (DT) inspection. The reason was an ex-employee complaint. The inspector requests employee files. The company delivers disorganized folders: unsigned contracts, incomplete payroll records, and no record of the Obligation to Inform (ODI) on safety matters. The result: millions in fines.

In Chilean labor law, a fundamental legal presumption operates in favor of the worker: if the employer doesn't have the documentation the law requires them to maintain, it is legally presumed that the facts alleged by the worker are true (for example, by application of Art. 9 of the Labor Code). The burden of proof falls on the company. It's not enough to do things right; you must document them.

In court, the logic is identical. If the worker claims not to have received a payment or not to have been trained, the employer's lack of documentary evidence is synonymous with losing the case due to "evidentiary orphanhood."

How does Cubillos Lama help you as your Outside General Counsel? Documentary prevention is one of the pillars of our OGC service. We help you understand what risks your company faces from documentation gaps, prioritize critical areas based on your operational reality, and design an action plan so you're prepared before an inspection or lawsuit arrives.

The 10 Essential Documents in Each File

These are, in order of importance and legal risk, the documents and instruments that cannot be missing from your personnel files:

1. Signed Employment Contract

The employment contract is consensual, meaning it is born from the mere agreement of the parties. However, Art. 9 of the Labor Code requires the employer to put it in writing within 15 days (or 5 days if the work or project is shorter than 30 days). If the worker refuses to sign, the document must be referred to the Labor Inspectorate. If the company doesn't have a signed contract, it faces fines (1 to 5 UTM) and the stipulations declared by the worker will be legally presumed to be true. Note: It is now a legal obligation to upload this document to the Electronic Labor Registry (REL) on the "Mi DT" portal (Law 21,327).

2. Contract Annexes and Updates (Position, Compensation, Schedule)

Any modification to the original conditions must be documented in writing through a dated and signed annex.

• Compensation: Art. 11 of the Labor Code requires updating compensation in the contract or annex at least once a year.
• Position/Nature of services: Art. 10 No. 3 requires determining the nature of services. If a worker changes position, an annex is required.

3. Attendance Record and Working Hours Determination

Although it's an ongoing record, it's "Document Zero" in any inspection. Art. 33 of the Labor Code requires the employer to maintain an attendance control system (paper book or electronic system). With the DT's recent modifications (Resolution 38/2024), electronic systems must meet strict certification standards. Without this record, the employer has no way to defend against million-dollar claims for alleged unpaid overtime or deductions for tardiness.

4. Proof of Delivery of Internal Regulations

Art. 153 of the Labor Code requires every company with 10 or more permanent workers to have Internal Rules of Order, Hygiene, and Safety (RIOHS). However, even if the company has only 1 worker, Law 16,744 requires having Internal Hygiene and Safety Rules (RIHS). The file must contain a receipt (physical or electronically signed) with the date of receipt of a copy of said regulations.

5. Proof of Delivery of the Karin Law Protocol

Law 21,643 (Karin Law) requires all companies to have a Prevention Protocol for sexual harassment, workplace harassment, and violence at work. In companies with 10 or more workers, this protocol is integrated into the RIOHS (Art. 154 No. 12). In smaller companies, it must be delivered mandatorily at the time of contract signing (Art. 154 bis). The signed receipt of this document is the company's first line of defense against labor protection actions and moral damage claims.

6. "Right to Know" (ODI) Record and Training Records

Supreme Decree No. 40 imposes the "Obligation to Inform" (ODI) or Right to Know. The worker must sign a record on the first day of work confirming they were instructed on the risks inherent to their duties and the preventive methods. Additionally, records of inductions from the Joint Hygiene and Safety Committee (mandatory from 25 workers) must be kept. In the event of a serious or fatal workplace accident, the absence of the ODI presumes employer fault (civil and criminal liability).

7. Signed Payroll Records and LRE

Payroll records must detail legal payments and deductions. They must be signed monthly (the DT allows electronic signatures according to current standards).

8. Annual Leave (Vacation) Record

Art. 67 of the Labor Code establishes the right to 15 working days of annual leave (20 days in extreme zones like Magallanes or Aysén). Additionally, Art. 68 establishes "Progressive Leave" (additional days based on seniority). The file must contain the "leave certificate" duly signed with start and end dates.

9. Overtime Agreement

Art. 32 of the Labor Code establishes that overtime can only be agreed upon to address "temporary needs or situations," in writing, with a maximum validity of 3 months. The legal limit is up to 2 overtime hours per day (Art. 31). Update (Law 21,561 - 40 hours): Today, the parties can agree in writing that overtime hours be compensated with additional leave days (up to 5 days per year) instead of being paid with the 50% surcharge. If there's no written agreement, the DT will issue fines, even if the hours were paid.

10. Remote Work and Conciliation Agreement (Laws 21,220 and 21,645)

If the worker works remotely, there must be an annex regulating: place of work, equipment/cost provision by the company, and the guarantee of the Right to Disconnect (minimum 12 continuous hours). Additionally, under Law 21,645 (Work-Life Balance Law), workers who are caregivers of children under 14 or persons with severe/moderate dependency have preferential right to request remote work, which must be properly documented in the employee's file.

How does Cubillos Lama help you as your Outside General Counsel? We review your contracts, annexes, and labor documentation to ensure every employee file is complete and compliant with current regulations. We draft the missing documents — contracts, remote work annexes, overtime agreements, Karin Law protocols — and adapt them to your company's reality. Additionally, we keep you up to date with regulatory changes so you're not caught off guard.

Consequences of Documentary Informality

• Administrative Fines: Pursuant to Art. 506 of the Labor Code, fines are strictly graded according to company size:
• Legal Presumption and Loss of Lawsuits: In the absence of contracts or payroll records, Courts apply the presumption of truthfulness in favor of the worker.
• Nullity of Dismissal (Bustos Law): Documentary disorder that results in non-timely payment of social security contributions triggers Art. 162 of the Labor Code. The dismissal is declared null and the company must continue paying monthly wages until it regularizes and validates the debt in court.

How does Cubillos Lama help you as your Outside General Counsel? If you already have an ongoing inspection or labor lawsuit, we accompany you in the response: we evaluate your real exposure, prepare the defense documentation, and represent you before the Labor Directorate or in court. If you're not yet in that situation, even better — we work with you so these consequences never materialize.

How to Organize It Professionally

Modern document management requires mixed or 100% authorized digital processes:

1. Management in the Electronic Labor Registry (REL): Remember that, by mandate of Law 21,327, it is now mandatory to electronically register with the DT: employment contracts, annexes, termination of employment relationships, and the Electronic Payroll Book (LRE).
2. Certified Digital Files: Use electronic signature platforms that comply with DT case law. Ensure an unalterable digital folder with automatic delivery of copies to the worker's personal email.
3. Quarterly Labor Compliance Audit: Human Resources should do quarterly cross-checks using this list to raise "red alerts" (e.g., unsigned ODI, missing payroll records). In labor law, documentary prevention is the most economical and effective defense strategy.

How does Cubillos Lama help you as your Outside General Counsel? We conduct periodic labor compliance audits as part of our OGC service: we review files, identify documentary gaps, and deliver a prioritized regularization plan. By knowing your company and your operation, we can anticipate risks specific to your industry and ensure your document management is always up to date — not just when there's an inspection looming.