[Chile] Milestone for the 42-hour workweek

The standard workweek in Chile will decrease from a maximum of 44 to 42 hours per week on April 26, and employers must carefully consider how they intend to put the change into practice, Alessandri reports.

The reform is part of a longer-term plan to reach a 40-hour workweek. But earlier phases caused some confusion as the law didn’t clearly explain how the reduction should be applied when hours were first reduced from 45 to 44.

A key question was whether employers could spread the reduction across the week in small increments, such as cutting 10 or 12 minutes from each day. The Labour Directorate reportedly said no, unless agreed with employees, employers had to remove a full hour from specific days. The aim was to ensure workers gained meaningful rest time, rather than small, less noticeable reductions.

Some courts disagreed, however, and supported companies that used daily minute reductions, which created uncertainty for employers.

That uncertainty has now been resolved. A 2025 law confirms that, unless there is agreement with employees, the reduction must be applied in larger blocks of either one hour or 50 minutes, based on how the employer structures the week. Splitting it into small daily reductions is no longer allowed.

In addition, the law clarifies how pay should be handled. Wages must remain the same, even though employees work fewer hours. This effectively increases the hourly rate, particularly for those working between 30 and 42 hours per week. As a result, overtime costs will also increase.

For employers, this means reviewing working patterns, shift systems, and employment contracts. In some cases, it may require adjusting staffing levels, reorganising schedules, or managing higher overtime costs.

Source: Alessandri

The standard workweek in Chile will decrease from a maximum of 44 to 42 hours per week on April 26, and employers must carefully consider how they intend to put the change into practice, Alessandri reports.

The reform is part of a longer-term plan to reach a 40-hour workweek. But earlier phases caused some confusion as the law didn’t clearly explain how the reduction should be applied when hours were first reduced from 45 to 44.

A key question was whether employers could spread the reduction across the week in small increments, such as cutting 10 or 12 minutes from each day. The Labour Directorate reportedly said no, unless agreed with employees, employers had to remove a full hour from specific days. The aim was to ensure workers gained meaningful rest time, rather than small, less noticeable reductions.

Some courts disagreed, however, and supported companies that used daily minute reductions, which created uncertainty for employers.

That uncertainty has now been resolved. A 2025 law confirms that, unless there is agreement with employees, the reduction must be applied in larger blocks of either one hour or 50 minutes, based on how the employer structures the week. Splitting it into small daily reductions is no longer allowed.

In addition, the law clarifies how pay should be handled. Wages must remain the same, even though employees work fewer hours. This effectively increases the hourly rate, particularly for those working between 30 and 42 hours per week. As a result, overtime costs will also increase.

For employers, this means reviewing working patterns, shift systems, and employment contracts. In some cases, it may require adjusting staffing levels, reorganising schedules, or managing higher overtime costs.

Source: Alessandri