Chile’s 40-Hour work week law now in effect: Key considerations for employers

At a glance

• Chile reduces maximum weekly working hours from 45 to 40 over five years.
• First reduction to 44 hours per week was effective from April 2024.
• Flexible scheduling options have been introduced, including a four-day workweek.
• Employers must review and update schedules, shift rotations, and time-tracking systems.
• Legal guidance is recommended for assessing the impact of reduced hours on contracts and agreements.

Chile has begun the phased implementation of its 40-hour workweek law, which reduces the maximum ordinary weekly working hours from 45 to 40 over a five-year period. The first reduction, to 44 hours per week, is already in effect as of April 2024, with further decreases to 42 hours in 2026 and 40 hours in 2028. These limits apply only to employees subject to ordinary working hours under Chilean law. Exempt employees, such as those in managerial roles or working without direct supervision, are not affected, although the law now tightens the criteria for classifying positions as exempt.

Employers should review and update employee schedules, shift rotations, and internal time-tracking systems to ensure compliance. The law introduces mechanisms for flexible scheduling, such as averaging working hours over a four-week cycle or adopting a four-day workweek once the 40-hour limit is fully in effect. Any new arrangements must stay within the legal limits and be clearly communicated to employees.

It is also essential to assess the potential impact on existing employment contracts and collective bargaining agreements, if applicable. Companies are encouraged to seek legal guidance to evaluate exemption statuses, identify operational impacts, and implement changes in a compliant and structured way ahead of each transition phase.