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Chile: Senate Labour Committee approved a bill to reduce working hours

  • On 25 January 2023, the Senate Labour Commission approved the Bill to reduce the working day to 40 hours in the second constitutional process.
  • The Bill still has to be debated in the Chamber of Deputies.

Article 22 of the Chilean Labour Code currently establishes a 45-hour working week divided into a minimum of five and a maximum of six days, making Chile one of the longest working hours countries in the world. However, worker productivity levels in Chile are currently low compared to other OECD members.  

The Bill has been stalled in Congress since it was introduced in 2017 during Sebastián Piñera’s administration, aiming to modify the Labour Code and reduce the working week to 40 hours, in line with statutory limits established in most OECD countries. 

Boric’s administration revived efforts to pass the 40-hour Bill in the Senate Labour Committee.

The weekly maximum of 40 hours may be spread over a minimum of 4 days and a maximum of 6 days per week.

Managers, directors, and all those who, due to the nature of their work, work without immediate supervision continue to be excluded from the limit on ordinary working hours.

The Bill also contains other amendments concerning the reconciliation of work and family and special working hours.

The implementation of the Bill will be a gradual process over five years, beginning with 44 hours a week in the first year, 42 in the third year, and 40 in the fifth year of its implementation, seeking to help companies to adapt to the new working hours.  

The Asociación de Emprendedores de Chile [Chilean association of entrepreneurs] stated that the reduction of the working week, closely related to the increase in the minimum wage and the effects of future pension reform, would imply an increase in the labour costs for small and medium enterprises of between 30 per cent and 40 per cent.

 

There are some other examples of working time reductions recently in Europe, and Spain and the United Kingdom. Some of these are related to pilot programmes of a four-day working week.

Colombia also recently reduced working hours in Latin America, as we reported here. 

The US staCalifornia changed the standard working week to 32 hours.

These changes have also largely depended on the debate and legislation on work-life balance, which has been codified in Europe with a special directive and which other countries worldwide are also gradually introducing into national legislation.

Here you can find an ILO worldwide analysis of Working Time and Work-Life Balance Around the World in a report that comprehensively reviews working hours and working time arrangements and their effects on workers’ work-life balance.