Chile
6. Cost-Reduction Strategies
To what extent can employers implement the following cost-reduction strategies as a result of COVID-19, and what are the primary limitations on each?
- Furloughs.
By agreement with employees.
- Salary reductions.
By agreement with employees.
- Redundancy.
Permitted except as it regards employees covered by the special unemployment insurance status, when the labour contract is suspended.
- Facility closure.
Permitted. It is important to point out that when the closure has not been imposed by the authorities, the employer shall continue paying salaries.
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