Working Hours Reduced to 42 Hours by 2026: Is Your Company Ready?
Starting April 26, 2026, the new phase of reduced working hours in Chile will take effect. The legal maximum will decrease from 44 to 42 hours per week.
This change is part of the gradual process to reach 40 hours by 2028. The reduction is automatic and does not allow for a reduction in pay.
What's going on?
The so-called "40-hour law" continues its phased implementation. From April 2026, all employment relationships governed by the Labor Code must adhere to the new 42-hour weekly limit.
It's not optional. It doesn't require a new law. And it doesn't allow for a salary reduction.
Key ideas
Effective date: April 26, 2026.
Who it applies to: workers under the Labor Code.
Salaries remain unchanged: the reduction in hours does not allow for a decrease in pay.
Mandatory contractual adjustments: contracts exceeding 42 hours must be modified.
Implementation method: ideally through an agreement between the employer and the employee (or union). If there is no agreement, the employer must adjust the working hours proportionally.
In addition, mothers, fathers and caregivers of children up to 12 years old retain the right to adapt their entry and exit times within certain limits.
Why does it matter?
It's not just about "two hours less". It involves reorganizing shifts, redistributing tasks, reviewing staffing levels, and analyzing labor costs.
Poor implementation can lead to internal conflicts, audits, and fines. It can also negatively impact productivity if not properly planned.
For many businesses, especially SMEs, this change requires foresight. Waiting until April 2026 is not enough. Planning must begin now.
To do?
Review current contracts and identify workdays that exceed 42 hours.
Evaluate the operational and financial impact, especially on shifts and overtime.
Define an adjustment strategy: individual agreement, collective bargaining, or proportional redistribution.
Reducing working hours is not just a legal change. It's a transformation in how work is organized. A timely review can prevent labor disputes and unnecessary costs.
