Chilean courts rule on labor damages and mental health

Recent judicial rulings in Chile have reinforced the distinction between economic compensation for job termination and reparations for psychological damage caused by workplace issues.

The Santiago Court of Appeals ruled in a case involving Enel Generación Chile S.A. that legal indemnities resulting from a constructive dismissal (autodespido) do not substitute for compensation for moral damage. The court found that the worker suffered from an adaptive disorder, acute stress, and post-traumatic stress due to workplace harassment, and ordered the defendants to pay for the damage to his mental health.

In a separate case, the Empresa Nacional del Petróleo (Enap) Magallanes was ordered to pay approximately 82 million pesos to a worker. The employee had been dismissed for crossing the border into Argentina to purchase fuel while on medical leave for depressive disorders. The judge noted that the company failed to consider less severe disciplinary alternatives, such as a written warning, which had been previously discussed in union agreements.