Labor compliance advisory: Karin Law, harassment prevention and Labor Directorate readiness.
Connected to Anguita Osorio's corporate compliance and economic-crimes practices.
Labor Compliance in Chile
Labor compliance is the set of policies, procedures and controls that allow a Chilean employer to sustainably meet labor regulation: the Karin Law, working-hour reform, harassment prevention, equal pay, health and safety, and Labor Directorate inspection standards. We advise on programs that are connected to — but distinct from — corporate criminal compliance.
Regulatory landscape
The four legal anchors that define Chilean labor compliance today.
Chile's labor regulatory framework has tightened considerably between 2021 and 2026. The combination of harassment-prevention obligations, the 40-hour workweek transition, more demanding equal-pay rules and convergence with ILO Convention 190 has reshaped the practical compliance burden for every employer — regardless of size.
Karin Law (21.643)
Workplace harassment, sexual harassment and violence-at-work prevention. Applies to every employer regardless of size, public or private. Effective August 1, 2024.
40-hour workweek (21.561)
Gradual reduction of the legal workweek from 45 to 40 hours over five years (2024–2028). Triggers contract amendments, time-tracking redesign and overtime-policy review.
Labor Code (DFL 1)
Baseline obligations on contracts, working hours, wages, social security, termination, freedom of association and individual / collective dispute resolution.
ILO Convention 190
Ratified by Chile in 2023. Sets the international floor for violence and harassment in the world of work, including remote work and gender perspective.
Program building blocks
Six operational components that anchor a sustainable program.
- Internal rules and policies
Updated internal rules of order, hygiene and safety; harassment-prevention protocol; remote-work policy; expense, gift and conflict-of-interest policies aligned with labor and corporate compliance.
- Whistleblower channel
A confidential reporting channel — written or electronic — that captures Karin Law complaints, retaliation reports and broader compliance breaches, with traceable triage.
- Investigation procedure
A documented procedure with due-process safeguards, statutory deadlines (30 days for Karin), record-keeping and reporting protocols to the Labor Directorate when applicable.
- Time tracking and payroll controls
Working-time records adapted to the 40-hour reform, overtime authorization workflow, equal-pay reviews and gender pay-gap analysis where applicable.
- Training and culture
Periodic, role-targeted training (board, leaders, all staff) on harassment prevention, leadership accountability and bystander intervention; assistance and assessment records.
- Monitoring and audit
KPI dashboard (case volume, time-to-close, recurrence), annual program audit and board reporting cycle. Supplier and contractor due diligence in subcontracting scenarios.
Risk and exposure
Four layers of liability that a robust program addresses simultaneously.
Layered exposure
- Administrative: Labor Directorate fines under the Labor Code general scale, calibrated by company size.
- Civil: individual and collective labor claims, fundamental-rights protection (tutela), joint and several liability under subcontracting.
- Criminal: exposure for serious or fatal workplace accidents and predicate offenses under Law 21.595.
- Reputational: Labor Directorate resolutions are public; media and union scrutiny amplifies impact.
Frequently asked questions
What is labor compliance?
Labor compliance is the set of policies, procedures and controls that allow a company to sustainably comply with Chilean labor law: working hours, wages, health and safety, harassment prevention (Karin Law), equal pay, freedom of association and maternity protection, among other areas.
Why has it become a regulatory focus in Chile?
The combination of Law 21.643 (Karin Law), Law 21.561 (40-hour workweek), Law 21.645 (proportional childcare) and convergence with international standards (ILO Convention 190) raised the bar. The Labor Directorate has increased its enforcement capacity and courts have set more demanding standards in labor litigation.
Which companies need a formal program?
Every employer must comply, but a formal program becomes critical when crossing thresholds: more than 50 employees, multi-jurisdiction operations, contractors with on-site personnel, joint committees, recent inspection exposure or ongoing labor litigation. In all these scenarios, documentation and process evidence become decisive.
How does it relate to the Karin Law?
The Karin Law (21.643) introduced, effective August 1, 2024, the obligation to maintain a workplace harassment, sexual harassment and violence prevention protocol, a complaints channel, protective measures, an internal investigation within 30 days and reporting to the Labor Directorate. It is one pillar — but not the only one — of a robust labor compliance program.
What risks does a good labor compliance program cover?
Administrative fines from the Labor Directorate, individual claims for unfair dismissal or fundamental-rights protection, collective claims and union actions, joint and several liability under subcontracting, criminal exposure for serious or fatal accidents, and reputational damage. A well-designed program reduces all four layers of exposure simultaneously.
How does it differ from penal compliance (Law 20.393)?
Penal compliance (Law 20.393 / Law 21.595) focuses on the criminal liability of the legal entity for predicate offenses. Labor compliance focuses on sustained conformity with labor regulation. There are overlap zones — workplace safety and health, AML in payroll — but the governance, control and reporting frameworks differ.
Related services
Explore complementary practice areas and regulatory analysis from our team.
Karin Law (21.643)
Scope, employer obligations, investigation deadlines and sanctions for workplace harassment.
Compliance Practice
Prevention models, internal investigations and regulatory compliance.
Eduardo Anguita Osorio
Managing Partner — corporate, compliance and financial regulation.
Nathalie Koenig
Of counsel — compliance, contracts and civil liability.
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