.webp){kind=small}
How to hire remote employees in
Found some great remote talent in Chile, but slightly more confused about how to hire that talent? Well, you’ve got two options: Hiring talent as employees, or hiring talent as contractors. Here are the big differences between the two.
If you want to successfully hire in
Chile
, you have two options:
Laws about hiring contractors are significantly more simple in
Chile
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Chile
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Chile
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Chile
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Chile
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Chile than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Chile.
PTO is calculated by the:
There are 16 public holidays in Chile.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
In Chile, employees are entitled to sick leave if they can provide a medical certificate within 2 days from the beginning of the leave. The employer must then forward the certificate to the health insurance within 3 days.
In Chile, the woman is entitled to 30 weeks of paid maternity leave, divided by 6 weeks before the birth and 24 weeks after, and is paid by health insurance.
During the pregnancy, the woman is not required to participate in activities that would endanger her health (i.e. heavy lifting). If this is a requirement of the job, the employer must reassign her to a different position during her pregnancy without pay reduction.
Fathers are entitled to 5 days of paid paternity leave.
After the 7th week of birth, the mother can opt to transfer some or all of her maternity leave to the father.
Female employees are entitled to 10 days of parental leave for a child under the age of 18. While the employee is entitled to be paid, they must make up the time taken off at a later date.
None.
None.
If a member of the employee’s immediate family passes away, the employee is entitled to 3 days of paid leave.
In order to terminate an employee, the cause must first be decided. By law, the following reasons are valid reasons for termination:
The employer must prepare a letter for the employee stating the cause for termination as well as the effective date and it must be signed in person by the employee or sent by certified mail to their home address. In addition, the same letter must be filed with the Chilean Labor Ministry. It is common that the employee to be notified on the last day of work.
After the termination letter is given, the employer must prepare a severance agreement which must include the cause for termination as well as the amount that will be paid out to the employee. The severance agreement must be signed within 10 days of the termination.
In the case of a mutual agreement, both parties must sign a document acknowledging that both parties have agreed that the employment contract is terminated. A severance agreement must also be signed within the first 1-2 weeks following the termination date.
The notice period in Chile is:
The notice period is 1 month by law. It is common that the notice period is waived and payment is made in lieu.
The Severance Pay in Chile depends:
If the employee has completed at least 1 year of employment, they are entitled to severance pay. For every year of service up to 11 years, the employee is entitled to 1 month’s salary. In addition, after one year of employment, the employee accumulates an additional month of severance pay if they have worked for at least half of the following year.
Probation period is 12 months.
A full workweek in Chile is 45 hours. The employer has the right to extend the day by no more than 2 hours a day, or 10 hours a week.
Overtime is paid at a rate of 150% of the regular pay.
.png)
Book a demo to get started.
