The 40-Hour Law in Chile: A Step Forward in Reducing the Workweek

On April 26, 2023, Chile took a significant step towards improving working conditions with the enactment of Law No. 21,561, which establishes a gradual reduction of the workweek from 45 to 40 hours. This change, seen as a milestone for both workers and employers, aims to balance work and personal life, enhance well-being, and boost productivity in the country. Here’s a breakdown of the key aspects of this law and its impact on Chilean society.

Gradual Reduction of the Workweek

One of the key elements of Law No. 21,561 is that the reduction of working hours will be implemented gradually over five years. This will allow businesses to adapt to the new schedules without causing abrupt disruptions to their operations. The reduction schedule is as follows:

- 2024: The maximum workweek will be reduced from 45 to 44 hours.

- 2026: The workweek will be reduced to 42 hours.

- 2028: The workweek will reach 40 hours.

This gradual approach provides time for both workers and companies to adjust processes, resources, and work dynamics to comply with the new regulations without creating stress in the workplace.

Flexibility in Work Schedule Distribution

The new law not only reduces working hours but also introduces flexibility in how the workweek is distributed. This means that, with mutual agreement, the workweek can be distributed over up to four weeks, as long as no week exceeds 45 hours and the overall average is 40 hours.

This flexibility offers an attractive alternative for both employers, who can adjust the work schedule to the operational needs of the business, and employees, who can arrange their schedules according to personal, family, or study responsibilities.

Benefits for Parents

One of the most innovative aspects of this law is the scheduling flexibility granted to workers with children under 12 years old. These workers will be able to start or end their workday up to an hour earlier or later, which facilitates balancing work with family responsibilities, such as child care and education.

This change is particularly relevant in a context where many families struggle to manage their work and family schedules. The law emphasizes the importance of supporting family well-being by promoting a more inclusive and equitable work environment.

Incentives for Early Implementation

Companies that wish to implement the 40-hour workweek ahead of the established deadlines can do so. To recognize this effort, the Chilean Government has created the "40-Hour Seal," a recognition that highlights organizations committed to their employees' well-being.

This incentive not only improves the public image of companies but can also become a competitive advantage by attracting talent that values working conditions promoting a balance between personal and professional life.

Compensation for Overtime and Vacation

Another important aspect of Law No. 21,561 is the possibility to compensate overtime with additional vacation days. This measure allows workers to enjoy more rest time, which can lead to increased productivity and reduced stress and burnout levels.

The 40-Hour Law represents a significant change in Chile's labor structure. By introducing a gradual reduction in working hours, greater schedule flexibility, and direct benefits for working families, this regulation aims to improve employees' quality of life and enhance company efficiency. With its implementation, Chile joins other countries that have adopted similar measures to promote worker well-being, creating a fairer and more equitable work environment.