The Chilean Senate, after years of discussion, has taken the decision to approve the bill that modifies the legislation on labor contracts that are made in the form of “Works contracts” which gives great recognition to all those workers who are immersed in this area.
Among the main points of the initiative, it highlights the fact that it incorporates a legal definition of “work contract” since previously there was no systematic regulation in the labor law, it is also important to highlight the fact that any worker who owns one or more contracts for more than one year or more than 240 days will be entitled to compensation for years of service which would be 2.5 days for each month worked.
In the same way, the approval of this project will give the employee the benefit of being able to remain affiliated to the public health system of Chile in all the cases that the worker has paid through this type of contracts for at least 4 months in this system during the last 12 calendar months. Also within this project is considered the right to annual holiday (Vacations) for all those workers under this type of contract.
This rule will begin to apply in all contracts of this type from January 1st 2019. The agriculture asociation are the ones who have criticized the most because they calculate that this Project will cost us$ 400 million affecting productivity and employment in the area.