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Employment & Labor

Remote Work & Telework Law in Chile

Hiring someone in Chile who works from home for a US company? Chilean law sets contract content, equipment, hours and disconnection rules that apply wherever your headquarters are.

Remote work in Chile: what the law requires

Law 21.220, in force since 1 April 2020, added a chapter on remote work and telework to the Código del Trabajo. The law distinguishes between trabajo a distancia (work done wholly or partly from a place other than the employer's premises, such as the employee's home) and teletrabajo (work performed using technology or reported through it). Most remote jobs today fall into both categories, and the same set of rules applies.

The main point for foreign companies is territorial. When the employee lives and works in Chile, Chilean labor law applies, including social security contributions, a written contract with mandatory content and the protections described below. This is true even if the employer has no Chilean entity and the contract is governed by US law on paper. A contractor label does not change the outcome if the relationship is in substance an employment relationship. Our team often helps companies in this position set up properly, alongside the broader work on employment contracts and hiring.

What we handle

Remote work contracts and annexes

Drafting the contract or addendum with all content the law requires, whether the arrangement is total or partial and whether it was agreed at the start or later.

Remote hiring structures

Advising on employer of record, local entity or direct hire for foreign companies with staff in Chile, and the consequences of each.

Policies and equipment

Setting rules on devices, internet and home-office costs, which the employer must provide or pay for.

Disconnection and hours

Defining working time, availability and the right to disconnect for remote staff, tied to the working hours rules.

Disputes with remote employees

Handling misclassification claims, unilateral changes to remote arrangements and terminations of remote workers.

What the contract must say

The written contract or addendum must record that the parties agreed to remote work, and whether it is total or partial. It must also state the place or places of work (unless the employee may choose freely), whether the arrangement is for a fixed period or indefinite, how the employer will supervise the work, how working time is distributed or whether the employee is exempt from the hour limits, and the right to disconnect. The agreement must be registered with the Dirección del Trabajo within a short statutory period, and workers must receive information about health and safety risks and about their right to organize.

Agreements can be reversed. If remote work starts after the employment began, either party can return to the original arrangement with notice (30 days under the statute). If remote work was agreed from the start, a change requires the consent of both sides. Employers who tell a remote employee to come back to the office the next day without checking this are often surprised by the consequences.

Equipment, disconnection and safety

The employer must provide the equipment and tools for the job, or pay for them, and cannot require the employee to bear costs that are not reimbursed. Where the employee sets their own schedule or is exempt from the hour limits, the employer must guarantee at least twelve consecutive hours in every twenty-four during which the employee has no duty to answer messages or instructions. A manager who sends late-night requests with the expectation of an immediate reply is exposed to a claim.

Occupational safety obligations continue at home. The employer must inform the employee of the risks and the preventive measures, and the law sets rules for how the employer can inspect the home workspace, which requires the employee's consent. Further amendments give some workers with childcare duties additional rights to request remote work. Because this area has changed more than once, we check the current text before advising. Immigration status, tax residence and permanent-establishment questions for the foreign employer are separate topics, and we refer them to the right specialists.

How we set up remote work for a company based abroad

01

Structure review

We look at who the person is, where they work and how the relationship operates, and recommend a compliant structure.

02

Documents in two languages

We prepare the contract and addendum in Spanish for Chile, with an English version for headquarters to approve.

03

Registration and follow-up

Our attorneys take care of the filings in Chile and set a review date, so the arrangement keeps pace with legal changes.

Remote Work & Telework Law: common questions

What foreign employers and remote workers ask us about teleworking in Chile.

Can a US company hire a remote worker in Chile without a Chilean entity?
Possibly through an employer-of-record or similar structure, but employing someone who works in Chile generally triggers Chilean labor law, including social security and a compliant written contract. The right structure depends on the role and how long the company plans to stay.
Does Law 21.220 apply to people who work from home only part of the week?
Yes. The law covers both total and partial remote work. In partial arrangements the contract has to explain how on-site and remote work are combined.
Who pays for the laptop and internet?
The employer must provide or pay for the equipment and tools needed, and the employee cannot be required to cover non-reimbursable costs. Specific allowances can be agreed within the law.
What is the right to disconnect?
For remote workers who set their own schedule or are exempt from the hour limits, the employer must guarantee at least twelve consecutive hours in each twenty-four when the worker has no obligation to respond to communications.
Can we cancel remote work and bring the employee back?
It depends on when the arrangement began. If remote work was added later, either party can end it with notice under the statute. If it was agreed from the start, the return to on-site work needs the consent of both sides.

Talk to a Chilean lawyer about remote work

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

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