Chile: Labour Code Amendments Simplify and Update Legal Formalities Governing Electronic Documents
On 27 July 2021, the Chilean Labour Code was revised to recognise the legal validity of certain digital documents. The purpose of the reform is to update and simplify the signing of particular documents that require specific formalities in order to be enforceable. In this regard, the new rules state, among other things, that Termination and Release Agreements, Resignations and Mutual Termination Agreements, can be granted by electronic means by complying with certain requirements:
- must be executed by the employer through the website of the Chilean Labour Department; and
- must be signed electronically by the employee in the same website.
In relation to this, the reform also incorporated the obligation of the employer to include certain declarations in the termination of employment notice, such as whether the final Termination and Release Agreement will be subscribed and paid in person or electronically, indicating that it is voluntary for the employee to accept, sign and receive the payment electronically.
The new reforms will enter into force within 90 days after 27 July 2021, once the Labour Department issues a resolution to determine the applicable procedure for the ratification of electronic documents in its website.