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[BUSINESS] · Chile, Spain · 2 sources

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Labor rights and unemployment benefits in Chile and Spain

In Chile, following an unemployment rate of 9.6% for the June-August quarter, three primary support mechanisms are available to workers: the Unemployment Insurance (Seguro de Cesantía), the Solidarity Unemployment Fund (Fondo de Cesantía Solidario), and the Unemployment Subsidy (Subsidio de Cesantía).

The Unemployment Insurance utilizes an individual account managed by the AFC. To access funds, workers must be unemployed, have held a contract governed by the Labor Code, and possess a Chilean national ID. Requirements for withdrawals vary by contract type, with indefinite contracts requiring 10 contributions and fixed-term contracts requiring five.

The Solidarity Unemployment Fund serves those with insufficient individual resources due to reasons such as company needs, bankruptcy, or contract expiration. Applicants must have 10 contributions paid to the fund within the previous 24 months. The Unemployment Subsidy is managed by the Social Security Institute or compensation funds.

In a separate legal context, labor attorney Juanma Lorente has highlighted a case involving a hairdresser dismissed after 16 years of service, occurring just days after she began medical leave. The company cited low professional performance as the reason for termination, raising legal questions regarding whether the dismissal constitutes an unfair or null dismissal due to potential discrimination related to her medical status.

Entities

AFC · Chile · Juanma Lorente · Spain