Chile: Labor Department judgment on foreign employees

To calculate the above 85%, the following rules must be followed:

1.- It must be considered the total of employees that the company hires in Chile,  and not separately by each work place that a company may have.

2.- Foreign specialist technicians shall not be considered for calculation purposes. The Department of Labor has stated that companies are not obliged to obtain a previous approval from the labor authorities to hire a foreign specialist technician to fulfil the 85% rate. In other words, the employer is freely allowed to hire that foreign employee pondering if the conditions are met, this is knowledge or technic abilities that require significant studies or specialization. However, if there is any claim after the hiring (not usual), the Department of Labor can always determine if the conditions are met, on a case by case basis.

3.- Foreign employees married to a Chilean (including widowhood) or who have Chilean children shall not be considered for calculation purposes.

4.- Foreign employees living in Chile for more than 5 years must be considered Chilean for this purposes.