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Employment Termination in Chile

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Termination process

Employees can be terminated with just cause, for reasons such as dishonesty, negligence, fraud, or any other work-related offenses, and although the managerial staff can be dismissed at will, a severance package is mandated by law.

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Notice period

An employer must provide at least 30 days’ notice of an employee’s termination.

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Severance pay

Employees dismissed for business reasons (e.g., redundancy) are entitled to a severance package equivalent to a month’s wages, while employees guilty of violating their contract or other serious offenses won’t be entitled to severance pay.