Overtime & Working Hours in Chile

The 40-hour week and what it changes

Working time in Chile is regulated by the Código del Trabajo, and Law 21.561, known as the 40-hour law, is reducing the ordinary weekly maximum in stages. It fell from 45 to 44 hours on 26 April 2024, fell to 42 hours in April 2026 and reaches 40 hours in April 2028. Pay cannot be reduced because the hours are shorter. If your workforce was set up under the old 45-hour assumption, schedules, shifts and overtime rules now need to be checked against the current limit.

For foreign employers this is an area where good intentions do not help. The Dirección del Trabajo inspects hours and attendance records in many sectors, and workers frequently claim unpaid overtime months after leaving. Employees from abroad are sometimes surprised that Chilean law gives them a legal right to limited hours, and that signing a contract that says otherwise changes little. Our broader labor compliance audits usually include a time-and-attendance review for this reason.

What we handle

How overtime works

Overtime is work beyond the ordinary weekly limit or the agreed daily schedule. It is lawful only for temporary needs of the business and must be agreed in writing, normally capped at two hours per day, and paid with a statutory surcharge over the regular hourly rate. Under Law 21.561 the parties can also agree to compensate overtime with additional rest, which gives employers an alternative to cash payment if the agreement is set up correctly.

The practical traps are informal. A manager asks staff to stay late by messaging a group chat, no written agreement exists, and the hours are never recorded. In a later claim the employee produces screenshots, and the court compares them with the badge or login data. The employer then owes the overtime plus the surcharge, and the lack of a record is held against it. Daily limits, weekly rest days and the rules for work on Sundays and holidays add further layers, particularly in retail and hospitality.

Who is exempt and who is not

Article 22 of the Labor Code excludes certain workers from the working-time limits, but the exemption was narrowed by the 40-hour law. It is limited to senior management and to people who work without immediate supervision. A job title is not enough. A "manager" who clocks in, follows a set schedule and reports daily to a superior is likely to be entitled to overtime.

Remote workers who freely set their own hours may also fall outside the standard limits, but telework has its own protections, including a right to disconnect, described on our remote work and telework page. Whenever a company misclassifies exemption status, the cost is not limited to one employee. Courts and the Dirección del Trabajo extend the logic to similar roles, so we advise on classification before it becomes a pattern.