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Sanctions and Fines for Hiring Foreign Workers

Sanctions and Fines for Hiring Foreign Workers

Sanctions and Fines for Hiring Foreign Workers

Law No. 21.325 on Migration and Foreign Residency establishes significant penalties for workers and employers who fail to comply with migration and labor regulations in Chile.

Key Points of Law No. 21.325:

  1. Labor Rights:
    Chile does not distinguish between national and foreign workers, granting the same labor rights to all.

  2. Employer Obligations:
    Employers must verify that foreign workers have valid permits to engage in paid activities.

Sanctions for Foreign Workers:

  • Fines: 0.5 to 5 UTM for engaging in paid activities without authorization.
  • Reincidence: Deportation from the country (Art. 127).
  • Exception: Foreigners who report their employers for labor or migration violations to SERMIG, the Labor Directorate, or other authorities will not be penalized.

Sanctions for Employers:
Fines vary depending on the company size and are applied per foreign worker hired without proper authorization:

Company TypeNumber of WorkersFine (UTM)
Microenterprise1 to 91 to 20
Small Enterprise10 to 4910 to 40
Medium Enterprise50 to 19930 to 100
Large Enterprise200 or more60 to 200

In case of recurrence within a 2-year period, the maximum fine for the corresponding range will be applied.

Recommendations for Employers:

  • Hire only foreign workers with valid residency or work permits.
  • Verify all documentation and permits before hiring.
  • Consider requesting special permits for foreigners with transitory residency (tourism).

Compliance with these regulations not only avoids sanctions but also strengthens corporate responsibility.

 

Sources:

  • National Migration Service
  • Labor Code

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