Employers that require extra staffing on a short-term basis can hire team members through a temporary work agency. There are specific rules regulating the use and treatment of these workers in Chile.
How do temporary staffing agencies work in Chile?
In Chile, work through temporary employment agencies is regulated under Law No. 20.123 (2007), often referred to as the Subcontracting Law. This law governs labour provided via agencies or subcontractors, and establishes a triangular employment relationship between the worker, the agency or subcontractor, and the user company (principal).
Under this law, the agency formally employs the worker, but the worker is assigned to perform services for the principal company. The agency handles payroll and employment obligations, while the principal directs the workers’ day-to-day tasks.
Equal treatment for temporary agency workers in Chile
Law No. 20.123 requires user companies to ensure that agency workers receive working conditions equivalent to those of permanent employees performing the same role. This includes pay, benefits, working hours, leave entitlements, and safety conditions.
Other rights and protections for temporary agency workers in Chile
Temporary agency workers in Chile benefit from several legal protections under Law No. 20.123. If the agency fails to meet its labour or social security obligations, the user company may be held secondarily responsible. This concept, known as subsidiary liability, means that the principal company can be required to fulfil these obligations if the agency does not comply.
To help enforce this, user companies have the right to monitor the agency’s compliance. They can request documentation to verify that the agency is fulfilling its legal duties and may even withhold payment until the agency provides sufficient evidence.
Importantly, temporary agency workers are entitled to all the statutory protections granted to employees under Chilean labour law. This includes minimum wage, social security coverage, paid leave, and occupational health and safety protections. These rights apply regardless of whether the worker is employed directly or through an agency.