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Chile - Avenues for redress (penalties, remedies) and litigation procedure for individual complaints

Avenues for redress (penalties, remedies) and litigation procedure for individual complaints - Chile - 2018    

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Compensation for unfair dismissal - free determination by court: No

Compensation for unfair dismissal - Legal limits (ceiling in months or calculation method):
Compensation = severance pay (30 pays/year of service with a maximum of 330 days) increased by:
- 30% if a dismissal based the requirements of the undertaking is declared unjustified, unfair or unlawful by the court.
- 50 % if the court rules unjustified termination of employment due to unforeseen circumstances or force majeure;
- 80% if a dismissal based on unduly conduct or serious breach of obligations set forth in the contract is declared unjustified
- 100% if the alleged reasons for dismissal are serious misconduct, acts or negligence seriously affecting the safety of the establishment and deliberate material damages (art. 160, 1), 5) 6) LC) and the court rules that there were no plausible grounds for dismissal.

  • See art. 168 LC.

Reinstatement available: Yes

  • There is no general right to reinstatement following unfair dismissal.
    However reinstatement is available to the worker in the event of discriminatory dismissal (that is dismissal based on: race, colour, sex, age, marital status, union association, religion, politic beliefs, nationality and social origin) and which is declared serious by the court: see art. 489 LC.
    Similarly, if a worker who is not protected under the "fuero laboral" is dismissed as the result of anti-union or unfair labour practices, he or she can opt for reinstatement (art. 294 LC).

Preliminary mandatory conciliation: Yes

  • - Judicial conciliation is part of the procedure before the labour jurisdiction: art. 453 2) LC.
    - Small claims proceedings (procedimiento monitorio) = value not exceeding 10 months' wages: mandatory extra-judicial conciliation before the Labour Inspectorate (art. 497 LC)

Competent court(s) / tribunal(s): labour court

  • Art. 420 a) LC: 'Juzgados de Letras del Trabajo'

Existing arbitration: No