New Law in Chile Promotes Student Employment

Statistics show that the unemployment rate among young Chileans is higher than average among Organisation for Economic Co-operation and Development (OECD) countries, and many students cite the challenge of finding time to study while undertaking employment.

Therefore, on September 1, 2019, a new law took effect aimed at young people who wish to work while they are students. Specifically, it applies to regular students between 18 and 24 years of age or students in the process of qualification in a recognized university, in a professional or technical higher education institution, or in entities executing study-leveling programs.

The objective of the law is to encourage employers to hire students and increase their rate of formal employment by incorporating into the Chilean Labor Code rules that help make receiving an education compatible with employment, such as making working hours more flexible; allowing students to access tax credits, subsidies, or other benefits aimed at financing their studies; and preserving the quality of family allowance, among other benefits.

The new law has been widely welcomed, as it seeks to give greater protection and formality in labor relations to students. Supporters of the change argue that it can be expected to benefit students from an economic point of view, in addition to helping them develop values such as respect, teamwork, order, and discipline while at the same time gaining experience. It is hoped that this measure will help Chile’s unemployment statistics.

Written by Ignacio García and Soledad Cuevas Guzman of Porzio Rios Garcia and Roger James of Ogletree Deakins

© 2019 Porzio Rios Garcia and Ogletree, Deakins, Nash, Smoak & Stewart, P.C.