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Benefits of the Employment Protection Law and Law that makes the requirements for access to Unemployment Insurance more flexible are extended

June 4, 2021

On June 2nd, 2021, Decree No.930 of the Ministry of Finance (hereinafter, the “Decree”) was published in the Official Gazette, which extends the enforcement of the benefits established in title I of Law No.21,227 (“Employment Protection Act”) and in Law No.21,263 (that temporarily amends the requirements to access and increases the amounts of the benefits of the unemployment insurance), granting new provisions with charge to the unemployment mutual aid fund.

The Decree sets forth the following main measures:

  1. It extends until September 6th, 2021, the enforcement of the benefits established in title I of the Employment Protection Act, which authorizes access to the benefits of the unemployment insurance to employees whose employment contracts have been suspended by order of authority or due to a temporary suspension agreement executed with the employer.
  2. Additionally, the Decree grants up to an eighteenth withdrawal paid with charge to the unemployment mutual aid fund of Law No.19,728, for those employees whose employment contracts are suspended by order of authority and who have depleted their right to withdrawals with charge to such fund.

    For these purposes, as of the sixth withdrawal, it sets a 45% of the remuneration as the average percentage over which the amount of such withdrawals shall be calculated, fixing a value of CLP436.547 (USD605 approx.) as the highest amount of this provision and a value of CLP234,000 (USD325 approx.) as the lowest amount.

  3. It extends up to September 6th, 2021, the enforcement of the benefits and entitlements of Law No.21,263, which temporarily amends the requirements to access the unemployment insurance and increases, during its validity, the amounts of the benefits of the unemployment insurance.