Approved law enabling access to unemployment insurance benefits in exceptional circumstances

2 April, 2020

April 1st, 2020 / By Luis Parada and Iñaki Irisarri. The Congress approved on March 31 (at night), a bill to protect employee’s jobs. This bill is expected to be enacted immediately by the Government. This law authorizes the following regime: /a/ Automatic suspension of employment agreements: The law provides that, unless otherwise agreed by the parties, employment agreements will be automatically suspended in those territories where the authority has declared a cessation of activities, provided that the decision necessarily prevents or totally prohibits the provision of the worker’s services (not applicable to workers who can provide services at a distance, nor to those companies expressly exempted from activities cessation by the authority’s order). In this case the company will continue to be obliged to pay social security contributions (with the exception of insurance against accidents at work), based on 50% of the workers’ remuneration, and the worker will receive the benefits of unemployment insurance. Employees who have agreed the continuity of the employment agreement with payment of all or part of salary, do not qualify for this benefit. /b/ Conventional suspension of employment agreements: The Law authorizes to suspend the employment agreement by mutual consent between the company and each employee, after union consultation, if the company has been affected in its activity due to the crisis. This can be agreed at any time, except when the cessation of activities has been declared by order of the authority, at which point the conventional suspension is interrupted and the employees are entitled to receive the benefits of unemployment insurance, and the company will maintain the obligation to pay social security contributions in the manner indicated. /c/ Agreement on reduction of remuneration: Companies that are experiencing verifiable financial difficulties or that have been excluded from the cessation of operations by the authorities, are authorized to agree with their employees, after consultation with the trade unions, on a reduction in working hours and remuneration of up to 50%, and at the same time, the employees will be able to access unemployment insurance benefits for the balance of the reduced remuneration. These agreements may be extended for a maximum of 5 continuous months for employees with indefinite-term contracts, and 3 months for employees with fixed-term employment agreements or employment agreements for a defined task (d) The law prohibits the termination of employment contracts on the grounds of force majeure, arising from the Covid-19 crisis, and in respect of employees whose employment agreements are suspended by application of the law, they may be terminated only on the grounds of article 161 of the Labor Code. The law also allows any termination of an employment agreement that has taken place from 18 March until the day of application of the law, may be rescinded by mutual agreement between the parties. (e) The law provides for the criminal liability of companies that misuse these benefits. Entry into force of Law about Remote Work or Teleworking: On March 26, 2020, Law 21,220 which amends the Labor Code on matters about Remote Work, was published in the Official Gazette, so the aforementioned legal amendment comes into force on […]

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CMF authorizes corporations under its control to use electronic signature for board of directors meetings minutes

26 February, 2020

February 25, 2020 | By Matías Zegers and M. del Pilar Paredes On February 13, 2020, the Commission for the Financial Market (“CMF”) issued General Rule No. 434 (“NCG 434”) that authorizes corporations that are under its control, the use of electronic signature for the subscription of minutes of board of directors meetings. The NCG 434 permanently authorizes the use of electronic signature for the subscription of board of directors meeting minutes of corporations under its control, which, to date, according with the provisions of the final paragraph of Article 48 of Law No 18,046 on Corporations, was not allowed, and was optional for the CMF to do so. The CMF establishes in NCG 434 that the use of the electronic signature must be carried out through mechanisms that comply with the conditions set forth in Law No 19,799 on Electronic Documents, Electronic Signature and Certification Services of said Signature. Therefore, in accordance with the provisions of Article 2 letter f) of said Law, any electronic sound, symbol or process that allows the recipient of any electronic document to at least formally identify its author, will be sufficient. NCG 434 is clear, and in order to avoid doubts about the verification of the identity of the director who electronically signed the minutes, it expressly states that, in those cases in which no advanced electronic signature is used, the sounds, symbols or electronic processes that are employed for this purposes, must be previously agreed by the board. Additionally, states that the general manager, or who offices as secretary in the respective session, must record in the minutes the fact that said electronic signature corresponds to the director who appears subscribing it. Contacts We hope you find this information helpful: Matías Zegers Partner mzegers@dlapiper.cl * This report provides general information on certain legal or commercial matters in Chile, and not intended to analyze in detail the matters contained in it, not is it intended to provide a particular legal advice on them. It is suggested to the reader to look for legal assistance before making a decision regarding the matters contained in this report. This report may not be reproduced by any means or in any part, without the prior consent of DLA Piper BAZ | NLD SpA 2020.

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Procedure to approve a New Constitution in Chile

10 January, 2020

January 14, 2020. By: DLA Piper Chile On December 2019 Chilean Congress approved Law 21,200 (the “Law”) stating a procedure aimed to elaborate a new Constitution which would replace the current Constitution. Pursuant to such procedure, Chileans shall vote on April 26, 2020 either approving or rejecting the possibility of having a new Constitution. In such a referendum, Chileans shall also vote as to the type of assembly that would be responsible for the drafting of the new Constitution if the approval option won: a convention exclusively formed by citizens elected by the people or a convention formed half, by citizens elected and the other half also by certain members of the Congress (the “Convention”). If the option for the approval of a new Constitution wins, then Chileans shall elect the members of the Convention on October 25, 2020. Any matter to be discussed by the Convention shall require a 2/3 quorum of the Convention´s members for approval. The Convention shall have a maximum term of nine months (renewable once for additional three months) to propose the new Constitution text. The proposed text must respect the nature of the Republic of Chile, its democratic regime, the rule of law and international treaties ratified by Chile. Within 60 days from the delivery of the proposed text by the Convention, Chilean people shall vote either approving or rejecting it. If the people approve the new Constitution it shall be in effect once duly promulgated according to the Law. If the people reject it, the current Constitution shall continue in full force and effect. Contacts We hope you find this information helpful: comunicaciones@dlapiper.cl * This report provides general information on certain legal or commercial matters in Chile, and not intended to analyze in detail the matters contained in it, not is it intended to provide a particular legal advice on them. It is suggested to the reader to look for legal assistance before making a decision regarding the matters contained in this report. This report may not be reproduced by any means or in any part, without the prior consent of DLA Piper BAZ | NLD SpA 2020.

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