Law No. 21,690: Updates and Advancements in Employment Inclusion for People with Disabilities in Chile

In August 2024, Law No. 21,690 was enacted, introducing significant modifications to the Labor Code and other regulations related to the employment of people with disabilities and disability pension recipients. This law represents a crucial advancement in promoting labor rights and opportunities for these groups, establishing more effective mechanisms for their integration into the Chilean labor market.

Main Changes Introduced by the Law

1. Expanded Coverage: The law extends protection not only to people with disabilities but also to disability pension recipients. This extension allows more individuals to benefit from labor inclusion policies, promoting greater equity.

2. Increased Inclusion Quota: One of the most notable changes is the increase in the labor inclusion quota. Previously, companies with 100 or more employees were required to hire at least 1% of people with disabilities. With the new law, this percentage rises to 2%, encouraging greater workforce integration.

3. Accessibility and Adjustments: The law introduces new obligations for companies to make necessary adjustments to ensure accessibility and prevent harassment of workers with disabilities. These measures aim to create inclusive and non-discriminatory work environments, ensuring equal conditions for all.

4. Subsidiary Obligations: Companies unable to meet the direct hiring percentage may opt for subsidiary measures, such as contracting services from companies that employ people with disabilities or making donations to labor inclusion projects. However, these options will be subject to strict requirements and reporting to ensure their effectiveness.

5. Sanctions and Enforcement: The law provides for more severe penalties for companies that fail to comply with the regulations, including fines of up to 30 monthly tax units per month of non-compliance and for each worker that should have been hired. Enforcement will also be intensified to ensure compliance with the new provisions.

Implications for Companies

With the implementation of Law No. 21,690, Chilean companies will need to adopt a series of measures to meet the new requirements. This includes adapting their recruitment processes, hiring practices, and developing labor inclusion policies. Additionally, they will need to report their efforts in this area in greater detail, either through direct hires or subsidiary options.

Donations to labor inclusion projects will also be subject to new regulations, limiting the percentage of resources that can be allocated to a single institution and encouraging the equitable distribution of these donations nationwide, particularly outside the Metropolitan Region.

Impact on Society

Law No. 21,690 represents a significant step forward in recognizing and promoting the labor rights of people with disabilities and disability pension recipients in Chile. The legislation not only facilitates access to the labor market for these individuals but also seeks to ensure fair and equitable conditions for their professional development. It reflects the country’s commitment to social and labor inclusion, fostering a more diverse and equitable job market.

In a global context where inclusion and diversity are fundamental pillars of business sustainability, this law positions Chile as a leader in implementing inclusive policies. Law No. 21,690 constitutes a crucial step towards the consolidation of an inclusive and equitable labor system, benefiting thousands of workers seeking to thrive in a fairer and more accessible environment. Companies will need to adapt to these new requirements, contributing to improving the quality of life for the most vulnerable citizens and generating a positive impact on society as a whole.