Chile: The Courts of Justice Allow the Reduction of Workday by 12 Minutes Per Day to Comply with the Progressive Application of the 40-Hour Law

Authors: Ignacia López and Bárbara Zlatar

On 26 April 2024, the so-called 40-hour law came into force, which, among other things, gradually reduced the maximum length of the working week from 45 to 40 hours per week. This reduction will be implemented gradually, decreasing to 44 hours per week as of April 26th, then to 42 hours in 2026 and to 40 hours in 2028.

Given the above, the law indicates that if there is no agreement between the employees and the company on how to reduce the working day to 44 hours, the latter must do so in a “proportional” manner. Having that in mind, last April 18th the Labour Department issued a legal opinion which indicates that the formula to be used by the employer to adapt the working day is to reduce it by at least one hour at the end of the working day on any of the 5 days that form part of the working week. In other words, the Labour Department upholds the interpretation that the concept of “proportional” cannot be given by reducing the working day by 12 minutes daily.

However, to date there have already been four rulings after the legal opinion of the Labour Department in which the labour courts have indicated that the law only requires employers to adapt the working day by reducing it proportionally on the different working days. Therefore, the law allows the employer to reduce the working day by 12 minutes per day. These rulings emphasize that the lawmakers do not specifically establish how the proportional progressiveness required by the law should be implemented.

As a result, the labour courts have ruled that companies that have reduced the working day by 12 minutes per day have not infringed the law, leaving without effect the fines imposed by the Labour Department.