The Digital Transformation of Attendance and Work Hours Control: Article 33 of the Labor Code, Effective April 26, 2024

In an increasingly digital work environment, companies face significant challenges in efficiently managing employee attendance and work hours. With the enactment of Article 33 of the Labor Code, effective April 26, 2024, the regulatory framework for electronic attendance and control systems has undergone a significant shift. This change aims to align recording technologies with new regulations and ensure proper administration of work hours, protecting both workers and employers.

The Impact of Article 33 of the Labor Code

Article 33 stipulates that electronic attendance and control systems must adjust their features and processes to the conditions set by the relevant authority through a resolution. This means that companies using these systems must conduct a thorough review of their technological tools to ensure they meet the new standards established by the National Service.

Law No. 21,561, in its transitional article four, specifies that previously granted authorizations for special attendance control and work hour determination systems, such as those regulated by Exempt Resolution No. 686 of July 1, 2022, will remain valid as long as they comply with the requirements set out in the resolution issued by the Director of Labor. This provision ensures the operational continuity of systems implemented before the new regulatory framework's effective date, preventing abrupt interruptions that could impact organizations.

Challenges of Adaptation and Compliance

For many companies, implementing digital attendance control systems has been an effective solution for managing work hours, allowing more precise and automated control of entry, exit, and break times. However, with the new legal provisions, these solutions will need to be evaluated and adjusted to meet the current and future standards set by the National Labor Service. This involves not only technological updates but also adjustments to internal processes to comply with regulatory demands.

For example, a key aspect organizations will need to review is how their recording systems handle breaks and fragmented work hours. According to Opinion No. 84/4 of February 6, 2024, any system that fails to meet the requirements set by the new regulations will lose its authorization, potentially leading to sanctions or issues in managing work hours.

How to Prepare for the Changes

In light of this, it is crucial for companies to act proactively to ensure a smooth transition to the new requirements. Key actions include:

• Auditing Current Systems: Organizations should conduct a thorough audit of their attendance control systems to identify any compliance gaps with the new regulations.

• Technological Updates: Some electronic systems may require updates or additional integrations to align with the new Labor Code provisions.

• Staff Training: The HR department must be fully informed about the changes in regulations and the new internal processes implemented to ensure accurate recording of work hours.

• Legal and Technological Advice: In some cases, it may be necessary to consult with experts in labor law and technology to ensure that implemented solutions effectively meet regulatory requirements.

Long-Term Benefits

Although the regulatory changes may present an initial challenge for companies, the proper implementation of electronic attendance control systems can yield significant long-term benefits. These systems not only help improve the accuracy of work hour records but also facilitate data-driven decision-making, which can enhance operational efficiency and reduce labor conflicts.

By adjusting their tools to meet new regulations, companies can seize the opportunity to optimize their talent management processes and foster a more equitable and transparent work environment.

The implementation of Article 33 of the Labor Code marks a significant milestone in the regulation of electronic attendance systems in Chile. Companies wishing to remain compliant will need to adapt their systems and processes to the new standards established by the National Labor Service. This change, though challenging, represents an opportunity to enhance labor management and advance toward a more digitized and efficient work environment.