Sick leave

Sick leave in Chile is governed by the Labour Code and represents an employee's entitlement to paid time off due to illness or medical treatment. Unlike many jurisdictions with fixed statutory minimums, Chile's sick leave framework operates through a system where employees are entitled to receive their full salary during periods of incapacity certified by a medical professional or authorized health institution.

The primary governing authority is the Chilean Labour Code (Código del Trabajo), specifically Articles 67 through 71, which establish the conditions and duration of sick leave entitlements. The system is administered through the social security system, where medical certificates issued by authorized providers determine eligibility and duration of leave.

Chile's sick leave regulations underwent significant modernization through Law 21.643, effective from January 1, 2024, which reformed the social security system and adjusted how medical incapacity is managed. This reform streamlined the certification process and clarified employer obligations regarding payment during sick leave periods.

Employers in Chile must recognize medical certificates issued by authorized health providers, including public health services (FONASA) and private health insurance providers (ISAPRE). During certified sick leave, employees retain their full salary, and employers cannot terminate employment solely due to illness-related absences within legal protections. Payroll teams must maintain accurate records of medical certifications and ensure timely salary payments during incapacity periods. Employers should establish clear procedures for receiving and processing medical documentation to ensure compliance with Labour Code requirements and avoid potential disputes or penalties from labour authorities.