The 40-Hour Law amends the Labor Code on several fronts, the most relevant being the reduction of the standard workweek from 45 to 40 hours, either as an average over periods of up to four weeks. This reduction will be applied gradually under the 1-2-2 schedule: in the first year the workweek drops to 44 hours, between the second and the end of the third year it goes down to 42 hours, and between the fourth and the end of the fifth year it reaches the definitive 40 hours. These are maximum deadlines, since any employer may voluntarily apply the 40‑hour workweek earlier.

Another significant change is the so‑called “Flex Time Band”, which benefits working mothers and fathers of children up to twelve years old, as well as those who have legal custody of them. They will be entitled to a two-hour window within which they may start their workday up to one hour earlier or later, which will also determine their finishing time. If both parents are workers, either of them—at the mother’s choice—may use this right.

Overtime rules also change under the new law: the parties may agree that overtime hours be compensated with additional vacation days, in addition to the current option of monetary payment. In this case, up to five business days of additional leave may be agreed per year. The calculation will follow the same surcharge applicable when overtime is paid in money; that is, each overtime hour corresponds to one and a half hours of compensated leave.

It is important to note that exceptional work schedules will continue to exist, and the 40‑Hour Law anticipates multiple effects to the original regulation. Workers may be compensated with annual leave corresponding to the hours exceeding the 40‑hour weekly limit that were actually worked, or compensated in money, depending on the agreement between the parties.

Additionally, a regulation issued by the Ministry of Labor will set the requirements and procedures for authorizing exceptional schedules. The Labor Directorate (DT) will have a 30‑day period to issue a decision on applications for exceptional systems.

Regarding this point, it should be noted that resolutions authorizing exceptional work and rest distribution systems under Article 38 of the Labor Code, issued before the effective date of the amendments established in the 40‑Hour Law, will remain valid until their expiration.

Finally, small businesses that implement the 40‑Hour Law reduction ahead of schedule will receive additional points in the evaluation of applications to programs and instruments offered by CORFO, SERCOTEC, and SENCE.