Paid time off

Paid time off in Chile entitles workers to 15 working days of annual leave with full pay. This right applies to employees who have completed more than one year of service with their employer. The leave must be taken as a continuous period or in agreed installments, and workers retain their full salary during this time. Employers cannot reduce wages or benefits during the paid time off period.

The regulation is governed by the Chilean Labour Code (Código del Trabajo), which establishes minimum standards for annual leave across all employment sectors. The right to 15 days of paid leave is a statutory entitlement that cannot be waived or reduced by individual employment contracts; any agreement offering less than this minimum is void.

Employers must grant paid time off within the calendar year it accrues, though the specific dates may be scheduled by mutual agreement between employer and employee. If an employee leaves employment before using all accrued leave, they are entitled to compensation for unused days at their regular daily rate. Conversely, if an employee takes leave before it has fully accrued, the employer may deduct the unearned portion from final wages only in limited circumstances.

Payroll teams must track accrual separately for each employee and ensure leave is properly documented and paid at the employee's ordinary wage rate, including any bonuses or commissions that form part of regular compensation. Failure to grant or properly compensate paid time off can result in significant penalties and claims for damages under Chilean labour law.