Government explores possible changes in compensation system for years of service



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December is the month committed by the government to enter the project of Modernization of Labor in Congress, which would contemplate rules to make working days more flexible and modify the measures implemented by the labor reform promoted by the administration of former President Michelle Bachelet.

For this initiative and others related to the modernization of services, the Ministry of Labor convened expert committees and the multi-union, which entered the final phase to later submit their reports of recommendations, before the bill enters the Congress.

In this context, the holder of the portfolio, Nicolás Monckeberg, stated that "it is very important that our labor market promotes employment opportunities.

Sometimes we have rules that leave workers anchored in jobs and discourage the search for new opportunities, as is the case of our contractual termination compensation system, which discourages the possibility of a new job opportunity because if I take I lose all the antiquity in the company. "

In this sense and before any change, the Secretary of State said that "we are evaluating, we do not solve because we want to make a phase of intense conversation at the work tables and based on all this we want to make a proposal for modernization."

Sources within the work confirm that they are analyzing various alternatives in this regard, including compensation for any event (resignation or resignation).

Less years?

Today in Chile, article 163 of the Labor Code regulates the payment for years of service that is granted to a worker hired at the time of dismissal.

"If the contract has been in force for a year or more and the employer terminates it in accordance with Article 161 (needs of the enterprise), it shall pay the employee's remuneration for years of service which the parties have individually or collectively agreed to," says the norm.

He adds that "the employer must pay the employee an indemnity equivalent to thirty days of the last monthly remuneration accumulated for each year of service and fraction of more than six months, continuously granted to said employer.This compensation will have a maximum limit of three hundred and thirty days of remuneration (11 years, ie 11 maximum salaries) ".

According to the economist and academic of the University of Los Andes, Cecília Cifuentes, one of the biggest distortions of labor legislation is the compensation system: "It is a policy that generates excessive rigidity in the labor market and also generates a perverse sense."

In this context, it says it should be at all events, but with a payment limit of 4 to 6 months, which is the average time it takes a person to find a job.

The director of the Center for Development Studies, Luis Eduardo Escobar, said that the revision of the regulation is also important, but together with the strengthening of unemployment insurance.

"You have to look at the set of problems in the labor market. We need to address the strengthening of unemployment insurance, considering what the compensation formula should be."

They offered 3,000 technological jobs

More than 3,000 jobs were offered at the Technology Employment Fair (FET 2018), inaugurated yesterday by the Minister of Labor, Nicolas Monckeberg.

"We can not stay in the past because it is unfair to let workers face these technological changes alone, so an important part of the ministry's dedication has to do with monitoring and supporting our workers for the new times," the official said.

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