On April 30, 2021, Law No. 21,327 was published, which modernizes the functioning of the Department of Labour, increasing its competences and powers. Along with the above, this new regulation incorporates technology to the processes of the Directorate through the digitalization of procedures and formalities. Finally, the Labor Code is modified, establishing new obligations for employers. In general terms, this law addresses the following matters:

1. The law establishes that all employers must register the new employment contracts in the electronic site of the Department of Labour, within 15 days of their execution. This obligation will become effective as of October 1, 2021.

2. The law also provides that the employer must register the employment contracts entered into prior to the effective date of this law, within a period of 1 year from its publication. This is provided that the contract is in force at the date of registration.

3. Additionally, as prescribed by law, every company must register the termination of the contract in the registry created for this purpose by the Department of Labour.

4. The law stipulates that employment contracts entered into after its entry into force must include the address and e-mail address of both parties.

5. The law provides and clarifies that the deadlines related to administrative fines, especially those related to the reconsideration thereof, are administrative working days.

6. Regarding communications, notifications, summons and fines issued by the Department of Labour, the law establishes that these must be sent by e-mail. Therefore, the company must register an e-mail address where the aforementioned procedures must be carried out. However, the possibility of notifying the company in person or by registered letter remains in force.

7. The law establishes that notifications shall be deemed to have been made on the third business day following the date of issuance of the aforesaid mail.

8. With respect to the new powers of investigation and supervision of the Department of Labour, the law provides that the Department of Labour may enter into agreements with public and private entities that manage data on employers, workers and trade union organizations, for the maintenance of data relating to labor and social security obligations.

9. A new range of fines for labor non-compliance is created, differentiating between micro-companies, which may be sanctioned with fines of 1 to 5 UTM, and small companies, which may be sanctioned with fines of 1 to 10 UTM.

10. The law establishes that the resolution issuing a fine must include the categorization of the fine, classifying them as minor, serious and very serious. For this purpose, the nature of the infraction, the impact on labor rights, the number of workers affected and the conduct of the employer will be considered.

11. The law has provided for the possibility that after 2 years from the declaration of the sentence classifying the companies as sole employer, the termination of such classification may be requested before the corresponding Labor Court.

12.  This new law becomes effective, except for the exceptions contained therein, on October 1, 2021.

Should you require additional information on this matter, please contact: Alfred Sherman (asherman@jdf.cl) and/or Felipe Ovalle (fovalle@jdf.cl).