As of April 2026, the standard workweek in Chile was reduced from 44 to 42 hours, as part of the phased schedule established by Law No. 21,561. The process began in 2024 with a reduction to 44 hours and is set to reach 40 hours per week by 2028.

At first glance, the change may seem like a simple adjustment: reducing weekly hours and adjusting schedules. In practice, however, implementing it properly requires a broader perspective.

It’s not just a matter of leaving a few days early or rescheduling shifts. It’s about reviewing how the company manages attendance, contracts, overtime, workloads, compensation, employment records, and internal controls.

The risk of looking at the reduction solely in terms of working hours

When reduced working hours are viewed solely as a change in schedule, risks may arise that are not always identified during the initial planning phase.

One of the first critical issues is time and attendance tracking. If a company lacks reliable information on workdays, late arrivals, overtime, time off, and shifts, any schedule adjustments are prone to errors.

Attendance tracking is no longer a minor administrative task; it has become a key tool for demonstrating compliance, accurately calculating compensation, and anticipating potential issues.

Compensation: Where Errors Often Go Unnoticed Until It's Too Late

Reduced working hours may affect overtime, surcharges, attendance bonuses, shifts, absenteeism, and monthly variables.

In addition, the Labor Directorate notes that a reduction in working hours must not result in a decrease in pay.

Therefore, if the systems, calculation rules, or review processes are not properly configured, errors may arise later on: in payroll processing, in social security contributions, in an employee’s claim, or during an employment audit.

Employment documentation: contracts, addenda, and internal policies

Another important point concerns documentation. Changes to the work schedule must be consistent with employment contracts, addenda, internal regulations, attendance policies, and approval workflows.

The Labor Directorate has stated that the implementation of reduced working hours must be carried out by mutual agreement between the parties, or through labor unions where applicable; in the absence of an agreement, the employer must adjust the workweek by reducing the number of working hours proportionally across the various workdays.

This makes it particularly important to ensure that agreements are properly documented, to verify the consistency of the documentation, and to ensure that the adjustment is not treated merely as an operational instruction.

Business continuity and workload

Reducing working hours without adjusting workloads can end up shifting the burden onto teams, leading to more overtime, a backlog of tasks, or a decline in service levels.

In that scenario, the company may formally comply with the new schedule, but that does not necessarily address the actual impact on operations.

The question, therefore, is not merely whether the company reduced its workweek to 42 hours. The question is whether it has the appropriate processes in place to sustain that change without causing errors, rework, or unforeseen issues.

What companies should review

Before the next payroll cycle, it’s a good idea to ask yourself a few simple questions:

Does the company have a clear understanding of how the reduced workweek was implemented in each department?

Are contracts, annexes, and internal policies aligned with the new reality?

Does the attendance system properly track workdays, back pay, and overtime?

Were the rules for calculating compensation revised after the adjustment?

Is business continuity ensured if the person responsible for the process is unavailable?

If any of these answers are unclear, the challenge probably isn't just in the workflow. It lies in the level of process control.

An opportunity to streamline human resources management

The 40-Hour Workweek Law should not be viewed merely as a legal obligation. When properly managed, it can serve as an opportunity to streamline processes, strengthen controls, and improve the way companies manage their workforce operations.

At Wiseplan, we help organizations review, streamline, and outsource critical HR processes, integrating compensation, labor compliance, attendance tracking, documentation, and operational support.

Reduced working hours do not end simply by adjusting the schedule. They end when the company can demonstrate that its processes, records, contracts, and compensation are properly aligned.

Learn more about our payroll outsourcing and labor law consulting solutions at Wiseplan.