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Congress passed the bill that extends and perfects the Employment Protection Law, while temporarily making access requirements more flexible and increasing the amount of benefits provided by unemployment insurance.
“This is excellent news for many workers who are collecting their Unemployment Insurance and thousands of others who, despite being unemployed, could not access this benefit. From now on they will be able to do so, receive better benefits and for longer. As a government we are very satisfied because we will be able to continue helping Chileans and their families in these difficult times ”, said the Minister of Labor, Maria José Zaldívar.
Meanwhile, the Undersecretary of Labor, Fernando Arab, added that “this new regulation comes at a very necessary moment for many families in our country who urgently require that their income not continue to decrease, also giving them the possibility of accessing additional money transfers during this period. period of suspension and significantly expanding the universe of potential beneficiaries ”.
In essence, the reform empowers the Executive to increase the validity of the Employment Protection Law by up to five months so that workers can opt for the suspension of their contract until February 2021, which originally ends in October.
Likewise, it increases the time to be able to request the reduction of the working day until July of next year, a period that could also be increased for another five months.
In addition, it makes more flexible and temporarily reduces the requirements for access to Unemployment Insurance, allowing many workers who are currently unemployed to opt for this system with only three continuous contributions prior to the end of their contract or 6 continuous or discontinuous monthly contributions in the last 12 months (as long as the last 2 have been continuous and with the same employer).
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It also raises the maximum number of transfers to seven without making a distinction between workers with an indefinite or fixed contract, or by work or task, as established by the original law; raises the amounts paid to 55% of the taxable salary in the third and fourth draft (with retroactive effect to August 1), and allows increasing the original percentages (30%) of the Unemployment Insurance for a sixth and seventh draft in the event of comply with certain parameters defined in a supreme decree, up to 45% of the average remuneration.
It is estimated that with the initiative some 2 million people will be able to access Unemployment Insurance and 3 million to apply for solidarity financing.
Meanwhile, the beneficiaries of the Employment Protection Law, which is projected could reach 1.2 million workers, will see their payments increased, which will also be able to receive them for a longer time.
The Employment Protection Law, in force since March, has already approved 730,493 requests for work suspension and another 44,557 requests for reduction of working hours.
In the case of private home workers, the reform reaffirmed that, for the purposes of calculating the Emergency Family Income (IFE), those who have suspended the effects of their work contracts under the Employment Protection Law are not found receiving income, and that the withdrawal of 4.11% of the compensation to all events of said workers will not be considered as income for the purposes of the IFE.
During the processing of the project, in addition, the government promised to send a new bill to include private home workers in Unemployment Insurance, a project that entered its processing on Wednesday, August 26 and that yesterday took a step in the Senate Labor Committee, after approving the idea of legislating.
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