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Law Update – the Labour Department states that it is appropriate to grant a financial supplement to the worker as long as the suspension of the employment contract is extended in accordance with the Law on the Protection of Employment.

24 Jun 2020

Introduction

On June 22, 2020, the Labor Department issued ruling No. 1959/015, in which it determines whether it is appropriate to grant benefits in money or in kind to workers with suspended employment contracts, in accordance with the Employment Protection Law (Law No. 21.227).

According to the statements made by the Labor Department, it is legally appropriate that, during the period of suspension of the employment contract, whether it is due to an act of authority or a temporary suspension agreement, the employer grants the workers benefits in money or items, in order to supplement what they are entitled to receive from the Unemployment Insurance.

This is provided that the sole purpose of such benefits is to alleviate the consequences of the current situation and that it does not imply an obligation on the part of the workers to provide services while the employment contract is suspended.

Contact

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

JDF