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Employment & Labor

Hiring & Employment Contracts in Chile

Chilean labor law starts applying the moment someone works for you here — whatever the contract is called and wherever your company is incorporated.

What this involves

The Chilean Labor Code requires a written contract within a short period of the employee starting, and the absence of one is presumed against the employer — the worker's account of the terms is taken as correct until proven otherwise. That single rule explains a large share of the disputes we see involving foreign companies.

The second recurring problem is the contractor label. Chilean courts assess the substance of the relationship — subordination, schedule, dependence, exclusivity — not the title on the document. When a long-standing contractor is recharacterized as an employee, the employer owes back social security contributions, benefits and severance, usually with penalties.

What we handle

Employment contracts

Contracts compliant with the Labor Code: remuneration structure, working time, place of work, duration, and the clauses specific to remote or hybrid arrangements.

Contractor vs employee analysis

An honest assessment of whether your contractor arrangements would survive scrutiny, and how to restructure the ones that would not.

Hiring foreign nationals

The work-authorization requirements and the statutory limits on the proportion of foreign employees, which catch out companies staffing a new Chilean office.

Confidentiality and non-compete

Clauses drafted to be enforceable in Chile, where post-employment restrictions are treated far more restrictively than in the United States.

Internal regulations and policies

The Reglamento Interno and the workplace policies that become mandatory once you pass certain headcount thresholds.

How we run this for a client abroad

01

Assessment first

You send the documents you have. We tell you what applies, what it costs and how long it takes — before you commit to anything.

02

Power of attorney

Granted at a Chilean consulate or apostilled where you live. It lets us act for you in Chile without you travelling.

03

We file, you get updates

Our attorneys handle the filings and appearances in Chile. You get plain-English updates at every stage.

Hiring & Employment Contracts — common questions

What English-speaking clients ask us most about this specific service.

Can we hire in Chile without a Chilean entity?
There are limited arrangements that work, but employing someone whose work is performed in Chile generally brings Chilean labor law with it — including the obligation to make social security contributions, which practically requires a local presence. Using a contractor agreement to sidestep this is the most common and most expensive mistake foreign employers make.
Are non-compete clauses enforceable in Chile?
Post-employment non-competes are viewed restrictively, because they collide with the constitutional freedom to work. A narrow, time-limited and compensated restriction has a better chance than a broad one, but no drafting makes an expansive US-style covenant reliably enforceable here. Confidentiality and non-solicitation obligations are on firmer ground.
Is there a probation period?
Chilean law does not provide an open probation period during which an employee can be dismissed freely. Fixed-term contracts serve a related purpose, but they carry their own rules and cannot simply be renewed indefinitely without converting into an indefinite relationship.
What has to be in a Chilean employment contract?
The Labor Code specifies mandatory content — parties, date, role, place of work, remuneration, working hours and duration among them. Omissions do not void the contract; they generally work against the employer if the terms are later disputed.

Talk to a Chilean lawyer about hiring in Chile

Get an initial assessment in English — confidential, with no obligation.

Book your consultation now →
WhatsApp+56 9 5217 5304
Emailhola@oklegal.cl
HoursMon–Sat 09:00–20:00