Employment & Benefits, Chile updates

Employment liability cannot be avoided by hiring staff through affiliates or related entities
Porzio Rios Garcia
  • Chile
  • June 20 2018

When structuring their businesses, companies must keep in mind that employment liability cannot be avoided by hiring personnel through their company affiliates or related entities. Fines may apply if the existence of multiple companies under a common employment management is found to be a scheme to avoid compliance with employment rights (eg, allocating profits in one company but hiring employees in another).

Conversation recorded by concealed voice recorder accepted as valid evidence
Porzio Rios Garcia
  • Chile
  • May 16 2018

Evidence used in employment cases must be obtained in a lawful manner and in accordance with fundamental rights, such as due process. However, a recent Supreme Court decision has fostered debate about the protection of fundamental rights within the context of an employment relationship. The court found that a conversation recorded without consent by a concealed voice recorder at a meeting could be considered valid evidence and did not violate the fundamental rights of the individuals recorded.

Supreme Court casts doubt on non-unionised employees' right to collective bargaining
Porzio Rios Garcia
  • Chile
  • May 02 2018

The right to collective bargaining for non-unionised employees is a contentious issue following the recent labour reform. The Supreme Court recently decided on constitutional protective action, finding that the Labour Inspectorate need not register a collective agreement with a non-union employee group. Although this has not rendered such agreements illegal, it has increased the uncertainty around them and may discourage them in future.

Current search