Chile’s labour reform under Law No. 21,561 enters a key implementation phase in 2026, with the reduction of the standard working week from 44 to 42 hours. This marks more than a change in working time; it reflects a broader shift in compliance expectations, increasing employer obligations around accurate time recording, payroll alignment, and regulatory reporting. For organisations operating in Chile, Time & Attendance (T&A) systems are becoming a critical component of compliance infrastructure, as the Labor Directorate places greater emphasis on digital traceability, system integrity, and audit readiness.
Law No. 21,561, introduced in April 2023, established a phased reduction of the working week from 45 to 40 hours over five years. Following the initial reduction to 44 hours in April 2024, the next mandatory milestone takes effect on 26 April 2026, reducing the statutory limit to 42 hours per week.
This change extends beyond contractual adjustment. It requires organisations to reassess how working time is recorded, monitored, and evidenced, with increasing reliance on digital systems capable of supporting regulatory inspection and compliance verification.
The 2026 reform introduces more structured working time controls, requiring organisations to review how scheduling, attendance, and compensation processes are managed in practice.
The Labor Directorate is increasing its expectations around electronic attendance systems, positioning them as a central pillar of labour compliance rather than an operational tool.
To meet regulatory requirements, systems must ensure:
Failure to meet these standards may result in financial penalties, corrective measures, and the potential loss of legal validity of attendance records in inspections or disputes.
As regulatory expectations increase, disconnected workforce systems present a growing compliance risk. Employers are expected to operate fully integrated environments where HR, payroll, and attendance data align in real time.
This requires:
Without this level of integration, organisations may face inconsistencies in reporting and increased exposure during regulatory inspections.
The 2026 milestone represents a shift towards continuous, system-driven labour compliance. Employers relying on manual processes or fragmented systems will face increasing operational pressure as inspection standards become more data-led and immediate.
Organisations should now assess whether their current infrastructure can:
For further detailed guidance on labour compliance, working time regulations and payroll obligations in Chile, visit our Chile Global Insights on the activpayroll website.
For further guidance on managing these updates and ensuring compliance with Chile’s 2026 working time reforms, please complete our Contact Us form and a member of our expert team will be happy to assist with your queries.