Chile: Department of Labour rules on labour contract termination

The Department of Labour was asked to issue a ruling to clarify and confirm if employers are allowed to communicate a labour contract termination through email.

According to the Labour Statute, any termination must be communicated in writing, describing the reasons or grounds invoked by the employer, and stating the severance amount that the employee is entitled to. Likewise, there are specific terms to communicate a termination depending on the cause invoked. The above requirements provide legal protection to employees, basically to grant certainty regarding severance amounts and the legal terms to challenge a termination before the Courts.

Another relevant legal rule states that employees are not allowed to waive minimum labour rights or protections.

Based on the above considerations, the Department of Labour concluded that it is not legally permitted to terminate a labour contract by means of sending an email to the employee, even if the employee is willing to accept the termination in this way.

The unique legal scheme to terminate a labour contract consists of issuing a formal termination letter, handed over to the employee, or sending that letter to the employee, by certified mail, to the home address indicated in the labour contract.