Find your employer of record in Chile

In Chile, there are other subsidies such as home office, private health insurance/allowance, and food subsidy (Colación). However, this benefit depends on the position or the industry.

Through the contractor management services, you can obtain a work visa, since you do not need a visa to enter the country. In addition, there are two types of visas for foreigners:

• Visa subject to contract. This visa is for those people who have received an employment contract before entering the country. Additionally, said visa is valid for 2 years and can be renewed for the same period. Then, the employee can apply for permanent residence to continue working in Chile. However, this process takes 20-30 days to complete, but you must apply 30-60 days before your arrival. Likewise, the contracting company must be legally constituted in Chile and demonstrate that such contracting will help the country. Also, have paid VAT and employee insurance during the previous 3 months.
• Work and vacation visa. People between the ages of 18 and 35 from some countries can apply for a visa to work in Chile for 1 year. Thus, these countries are Colombia, Mexico, Peru, Germany, Canada, Australia, the Czech Republic, and New Zealand. However, this visa is not renewable.

This tax has a standard rate of 19%.

Termination Process

The Professional Employer Organization assists you in terminating employees, as it depends on the cause. Thus, for the termination, the law establishes the following valid reasons:

• Termination of a contract, resignation, or mutual agreement
• Breach of contract, for which the employer must provide proof
• Reorganization or business needs. This is the most common reason for the dismissal of an employee.

In case of termination by the employer, it must notify the employee through a letter. In addition, it must include the cause, the effective date of the termination, and the employee's signature. Also, this letter can be sent by the employer to the employee through certified mail.

In the same way, the employer must send the same letter to the Chilean Ministry of Labor. However, it is common for the employee to receive the notice on the last day of work.

Through the assistance of the Employer of Record in Chile, you can prepare a dismissal agreement, with the cause and the amount of payment. In the same way, both parties must sign the said agreement within 10 days of termination.

Also, when there is a mutual agreement for termination, there must be a document acknowledging such circumstances. The termination agreement must be signed within the first 1-2 weeks after termination.

Notice Period

Although the legal notice period is 1 month, it is common for this period to be changed for an equivalent payment.

Severance Pay

Chilean employees who have completed at least one year of service are entitled to receive severance pay. In this case, if the employee has worked between 1 and 11 years, he is entitled to receive 1 month of salary for each year. Likewise, after 1 year of service, if the employee has worked at least half of the following year, they receive an additional month of pay.

Probation Period

The trial period is 12 months.

Paid Time Offs

Hire the services of an Employer of Record in Chile to optimize vacation pay for employees with a minimum year of service. In this case, the permit consists of 15 business days.

Public Holidays

There are 16 national holidays throughout the year.

Vacation Holidays

There are 15 vacation holidays throughout the year.

Sick Days

Employees in Chile are entitled to receive sick leave upon presentation of a medical certificate. In addition, they must do so within 48 hours after the onset of the disease. Next, the employer must send the said certificate to the health insurance within 3 days of receiving it.

With payroll outsourcing, you can make the payment in the following way:

• During the first 3 days of leave, the employee will not receive any pay.
• From the 4th day onwards, they are entitled to sick pay, although it may be subject to a cap.