Straight Get-to-Know Facts on How to Hire Employees in Chile
Forming a new company in a new region is a challenging task which can be successfully accomplished through the guidance of a local agent. After the company has established itself, the time comes for hiring the employees. Employing the staff in Chile is a different process compared to the other countries in the world. This article will tell you more about how to hire employees in Chile.
While hiring staff in Chile, the company must know the local law of employment:
- All the companies must share 30% of their taxable income with the employees.
- Every employee is entitled for 15 days of leaves after an year of employment in the organization.
- The companies based out of Chile must give their employees the following benefits: Medical Insurance, Life Insurance, Food Coupons, Share Options, and Public Holiday Bonus
Hiring Employees in Chile
Part time and full-time employees are available in Chile. Employees serving technical post or qualified post need to sign an agreement for a time period of maximum 12 months which can be extended to 24 months. If you do not want to hire directly, contractor’s company can be of great help as Chile law allows you to outsource all your services. The employees or contract workers are all managed and coordinated by the contractors.
You must however take care that the contractors do not breach any Chilean law as you will be equally be responsible for violation of labour laws which may thus bring compensation charges which shall be jointly paid by the contractors and the business owner.
To hire a contractor who will hire employees, a written agreement is provided by the Chilean labour law and this contract contains all the information such as the post of the employee, the post of the employee, the job description, the payment given by the employer and the duration in which the payment will be done.
Foreigners can also apply to work in Chile via a tourist visa or the employer must file a visa application for the foreign employee with the immigration authorities so that he can get the permission to work and live in Chile.
Chilean law doesn’t have a defined law and regulation for the probation period of the new employees. In Chile, probation is the best practice to hire employees for a fixed period of time where his performance is deeply observed, based on which his term of employment is fixed by the employer if the performance of the employee has been found satisfactory.
Expenses of the Employee
The expenses of the employee are usually met by the employee’s net salary including an additional cost of 25%. The salaries of employees are processed based on pay roll system and any payment in form of renumeration is subjected to income tax.
Chile has a different culture along with different legal law, but due to its market potential, many foreigners are interested in setting up their business here. The challenging cultural and legal difference can be overcome by the local agent so that you can set up a proper business in the local market of Chile.