๐Ÿ‡จ๐Ÿ‡ฑ Americas ยทOECD member

Chile

An ILO EPLex composite of 0.357 places Chile among moderate-protection jurisdictions on the 0-1 scale.

ILO EPLex OECD EPL
0.357 ILO EPLex composite (0โ€“1)
OECD EPL โ†’

Chile's statutory protection against unfair dismissal is moderate - an ILO EPLex composite of 0.357 on the 0โ€“1 scale, more flexible than 73% of the 95 rated countries. Data is compiled from 2 official sources (ILO EPLex, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.

Chile - the verdict

Chile's statutory protection against unfair dismissal is moderate - an ILO EPLex composite of 0.357 on the 0โ€“1 scale, more flexible than 73% of the 95 rated countries.

0.357
ILO EPLex composite (0โ€“1)
73rd
percentile, flexibility
2.34/6
OECD EPL strictness

Sources: ILO EPLex ยท OECD EPL. Higher = stronger statutory protection.

How we calculate this percentile

We sort every country with a published ILO EPLex composite score (95 in total) from lowest to highest. Chile's position in that sorted list gives its percentile: round((countries at or below its score รท 95) ร— 100). A higher percentile means stronger statutory dismissal protection relative to the full 95-country set, not a comparison to any single peer country.

Chile carries moderate employment protection scores across the 2 international datasets we track (Americas). The ILO EPLex composite (2018) stands at 0.357/1.0. The OECD EPL overall index is 2.34/6.0, ranking #34 of OECD-covered countries. Statutory notice rules apply across 7 tenure tiers.

What the Data Shows for Chile

Americas. Covered by 2/3 tracked datasets. As an OECD member, it is included in the OECD's long-running historical EPL series. The most recent ILO EPLex composite score is 0.357 out of 1.0 (2018), summarizing statutory termination rules into a single index. The OECD EPL overall strictness index is 2.34/6.0, where higher values indicate stricter rules on individual and collective dismissal.

Statutory notice periods in Chile scale with tenure across 7 tiers, reaching 1 month at 20 years of service. Severance pay can reach 11 months of salary at 20 years, while redundancy-specific pay is 11 months. The maximum probation period allowed by law is 25 months, defining how long employers can assess workers under reduced protection.

The EPLex redress/reinstatement sub-indicator is 0.375/1.0, reflecting how strong remedies are when a dismissal is ruled unlawful. Historically, Chile's OECD EPL score moved from 2.67 in 2008 to 2.34 in 2019, showing the direction of reform over time. 6 peer comparisons below.

How to read the three measurement scales

These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.

Data Sources

2

ILO / WB / OECD coverage

Region

Americas

Geographic grouping

Latest Year

2019

Most recent indicator update

Chile vs. every rated country

Where Chile's ILO EPLex composite sits among all 95 countries with a composite score.

Chile - ILO EPLex composite

Worker-protection strength against unfair dismissal (0โ€“1 scale)

0.36 Top 73% higher than 27% of 95 rated countries

0.00โ€“0.10: 0 rated countries (0%). Below this entry. 0.10โ€“0.20: 1 rated countries (1%). Below this entry. 0.20โ€“0.30: 8 rated countries (8%). Below this entry. 0.30โ€“0.40: 26 rated countries (27%). This entry sits in this band. 0.40โ€“0.50: 39 rated countries (41%). Above this entry. 0.50โ€“0.60: 15 rated countries (16%). Above this entry. 0.60โ€“0.70: 6 rated countries (6%). Above this entry. 0.70โ€“0.80: 0 rated countries (0%). Above this entry. 0.80โ€“0.90: 0 rated countries (0%). Above this entry. 0.90โ€“1.00: 0 rated countries (0%). Above this entry. Chile 0.00 1.00 EPLex composite score, bucketed by value

Each bar is a band; taller bars hold more rated countries. The dashed line + filled bar mark this entry. Hover or tap any bar for its full count, share, and where it sits relative to this entry.

Source ILO EPLex composite (0โ€“1 scale) ยท 2018

Chile EPLex composite 35.7%

Out of a 1.0 maximum. Higher = stronger statutory protection against dismissal.

ILO EPLex (2018)
0.357
out of 1.0 ยท Rank #70
B-READY 2025
-
No data available
OECD EPL
2.34
out of 6.0 ยท Rank #34

ILO EPLex

Termination Protection Breakdown (2018)

Prohibited Grounds for Dismissal
0.500
Probation Period
0.000
Procedural Requirements
0.500
Notice Periods
0.207
Severance Pay
0.207
Redundancy Pay
0.301
Redress / Reinstatement
0.375

Scale: 0 = no protection · 1 = maximum protection. Source: ILO EPLex 2018.

Max probation period: 25 months

Notice Periods by Tenure

Tenure Notice Period
6 months 1 month
9 months 1 month
2 years 1 month
4 years 1 month
5 years 1 month
10 years 1 month
20 years 1 month

Source: ILO EPLex ILO EPLex Notice period is the legally mandated advance notice before termination

Severance and Redundancy Pay by Tenure

Tenure Severance Redundancy
6 months 0 mo 0 mo
9 months 0 mo 0 mo
2 years 2 mo 2 mo
4 years 4 mo 4 mo
5 years 5 mo 5 mo
10 years 10 mo 10 mo
20 years 11 mo 11 mo

Values in salary-months. Source: ILO EPLex. Severance = individual dismissal. Redundancy = collective/economic dismissal.



OECD EPL

Historical Protection Score

Year Overall Score Visual
2008 2.67
2009 2.67
2010 2.67
2011 2.67
2012 2.67
2013 2.34
2014 2.34
2015 2.34
2016 2.34
2017 2.34
2018 2.34
2019 2.34

Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.

Frequently Asked Questions

What are the employment protections in Chile?

ILO EPLex termination protection composite score: 0.357/1.0 (2018); OECD EPL overall: 2.34/6.0; 7 notice period tiers defined by law; 7 severance/redundancy pay tiers. (2 sources.)

How does Chile compare to the OECD average?

OECD EPL 2.34/6.0 (above the ~2.3 average).

What notice period and severance pay does Chile require?

up to 1 month notice (20 years); severance up to 11 months (20 years).

What data sources cover Chile's employment laws?

2 sources: ILO EPLex; OECD EPL.

How strict are dismissal protections in Chile?

EPLex 2018: relatively flexible (0.357/1.0); max probation 25mo.

How does Chile handle labor disputes?

EPLex redress indicator 0.375/1.0.

What to do with this

Use Chile's scores as a comparison benchmark, not legal advice.

  • Chile sits below 73% of rated countries on statutory dismissal protection (ILO EPLex 0.357/1.0) - see exactly where it lands among all 95. View the rankings
  • The three indices measure different things on different scales, compare Chile side by side with another country before drawing a conclusion. Compare Chile
  • Read Chile against its regional peers, the Americas averages reveal the structural pattern. Americas overview

These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.

Related

Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.

Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.

PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.