On July 27, 2021, Law No. 21.361 was published in the Official Gazette, which adapts the Labor Code regarding electronic labor documents, incorporating amendments to Articles 162 and 177 of the Labor Code. Specifically, this law provides as follows:

1. The employer must inform in the notice of termination of the contract whether it will grant and pay the termination of employment in person or electronically, expressly stating that it is voluntary for the employee to accept, sign and receive the payment electronically and that he/she may always opt for the in-person performance before a minister of faith. In such notice, the employer shall inform the employee that, at the time of signing the settlement, if he/she deems it necessary, he/she may make a reservation of rights.

2. The settlement shall be considered as ratified before the Labor Inspector if it is granted by the employer in the electronic site of the Department of Labour, which complies with the corresponding legal regulations and is electronically signed by the employee in the same site. This settlement must at least state the cause of termination invoked, the payments to which it has given rise and, if applicable, the sums that have been left pending and the reservation of rights that the employee may have formulated. The resignation and mutual agreement signed electronically by the employee in the electronic site of the Department of Labour will have the same consideration.

3. The subscription of the settlement in electronic form shall always be optional for the employee. In the event that the employee rejects the electronic settlement granted by the employer, the latter shall be obliged to make the respective settlement available to the employee in person, within the term established in the first paragraph of article 177 of the Labor Code or, if such term has expired while the electronic subscription of the employee is pending, within a maximum term of 3 working days as from the employee’s rejection.

4. The liberatory power of the settlement shall be restricted only to that in which the parties expressly agree and shall not extend to those aspects in which the consent is not formed.

5. This law shall enter into force on the date of publication of the resolution to be issued by the Department of Labour establishing the applicable procedure for the proper functioning of the ratification of the settlement, the resignation and the mutual agreement in the electronic portal of the Department of Labour, which shall also indicate the procedure by which the employer shall be required to pay and comply with the obligations arising therefrom in due time and in full, as well as the applicable regulation in the event of reservation of rights by the employee in the electronic settlement. Such resolution must be issued within 90 days from the publication of this law.

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