Employment
1939 Ley General del Trabajo with strong reinstatement rights
The Ley General del Trabajo of 1939 remains the core statute, supplemented by decrees. Dismissal is permitted only on listed grounds, and a worker dismissed without cause may obtain administrative reinstatement through the Ministerio de Trabajo. Employers owe an aguinaldo (13th salary) and, in years when GDP growth exceeds 4.5 percent, a second aguinaldo by decree.
Key rules
- Jurisdiction — National, enforced by the Ministerio de Trabajo and labour courts
- Deadline — Aguinaldo: paid by 20 December
- Deadline — Annual leave: 15 working days after one year, rising with seniority
- Deadline — Reinstatement claim: filed with the labour ministry within three months
Governing law
- Ley General del Trabajo1939
- Decreto Supremo 286992006
- Decreto Supremo 1802segundo aguinaldo
In practice
Administrative reinstatement is the distinctive feature: the labour ministry can order a worker returned to their post with back pay, and the order is enforceable without a court judgment, which makes dismissal materially harder than in neighbouring systems. The second aguinaldo is triggered by an economic-growth threshold measured over a four-quarter period, so whether it is owed varies year to year.