Dismissal for Cause Letter Art. 160 Chile (Despido Disciplinario)

Dismissal for Cause Letter Art. 160 Chile (Carta de Despido por Causal de Caducidad) is the mandatory written notification governed by Articles 160 and 162 of the Código del Trabajo de Chile (CT) by which an employer (empleador) dismisses a worker (trabajador) for serious misconduct (causales de caducidad) that renders the continuation of the employment relationship impossible, without the obligation to pay indemnización por años de servicio. Article 160 enumerates seven causales de caducidad: No. 1 (falta de probidad grave en el desempeño de sus funciones — serious dishonesty, embezzlement, or breach of fiduciary duty); No. 1 bis (acoso sexual under Ley N° 20.005 and acoso laboral under Ley N° 20.607, introduced to CT Article 160 by Law amendments); No. 2 (conductas de acoso sexual under Ley N° 20.005 — covered also under No. 1 bis); No. 3 (ausencias injustificadas por dos días consecutivos o más, o tres días en el mes, o por ausencias repetidas en los días inmediatamente anteriores o posteriores a un festivo); No. 4 (abandono del trabajo — unilateral cessation of work duties without authorization); No. 5 (actos, omisiones o imprudencias temerarias que afecten la seguridad o el funcionamiento del establecimiento, la seguridad o la actividad de los trabajadores, o la salud de éstos); No. 6 (perjuicio material causado intencionalmente a las instalaciones, maquinarias, herramientas, útiles de trabajo, productos o mercaderías del empleador); and No. 7 (incumplimiento grave de las obligaciones que impone el contrato de trabajo).

The Dirección del Trabajo (DT) and the Corte Suprema de Chile have established stringent standards for CT Article 160 dismissals through decades of Sala Laboral jurisprudence and DT Dictámenes. The cardinal rule is that the carta de despido must describe the specific factual circumstances of the misconduct with sufficient precision that the worker can understand exactly what acts are being alleged — vague or generic descriptions such as 'serious breach of obligations' without specifying the dates, acts, and circumstances make the dismissal unjustified (despido injustificado) under CT Article 168, regardless of whether the misconduct actually occurred.

For acoso laboral (workplace harassment) under Ley N° 20.607, which amended CT Article 2 to define acoso laboral as 'any conduct that constitutes aggression or harassment exercised by the employer or by one or more workers against another worker or workers, by non-occasional acts, which seek to harm, intimidate, or create an adverse work environment,' the employer must first complete an internal investigation (investigación interna) under the Reglamento Interno de Orden, Higiene y Seguridad (RIOHS) required by CT Article 153 — or refer the investigation to the Inspección del Trabajo — before invoking the causal. The investigation must document findings, hear the accused worker's defence, and apply proportional sanctions.

For acoso sexual under Ley N° 20.005 (which introduced CT Article 211-A through 211-E defining acoso sexual and establishing investigation procedures), the employer must follow the mandatory protocol: investigate within 30 days, prepare a written report, notify the parties, and apply sanctions including possible dismissal. The Superintendencia de Seguridad Social (SUSESO) monitors compliance with harassment investigation obligations through its Departamento de Fiscalización.

The Juzgados de Letras del Trabajo, created by Ley N° 20.087, apply CT Article 168 surcharges of 80% to 100% on the standard severance when the employer invokes CT Article 160 but the court finds the alleged misconduct was not proven or was not sufficiently serious to constitute the specific causal — the highest penalty in Chilean labour law, reflecting judicial hostility to unfounded serious misconduct allegations against workers.

A Dismissal for Cause Letter Art. 160 Chile is required under Código del Trabajo Article 162 when an employer has documented evidence of serious misconduct by a worker and needs to terminate the employment without severance pay — but only when the conduct genuinely meets the high threshold established by CT Article 160 and the Corte Suprema jurisprudencia.

The carta de despido is needed when a worker has been caught committing falta de probidad (No. 1) — embezzling company funds, falsifying expense reports, misappropriating company assets, accepting bribes (cohecho) from suppliers or clients, or engaging in fraudulent conduct that breaches the fiduciary duties of the employment relationship. Retail companies like Falabella and Cencosud and financial institutions like Banco de Chile and BancoEstado with robust internal audit systems (auditoría interna) regularly invoke this causal when investigators document employee theft or fraud.

The dismissal letter is needed after completion of a mandatory acoso laboral (workplace harassment) or acoso sexual investigation — required by CT Article 153 RIOHS procedures — that concludes with a finding of serious, repeated harassment by the accused worker. Human resources departments at corporations including LATAM Airlines, Codelco, Entel, and Empresa Nacional de Petróleo (ENAP) are required by CT Article 211-B to investigate acoso sexual complaints within 30 days before any sanction can be applied.

A CT Article 160 No. 3 dismissal letter is needed when a worker accumulates the specific absence threshold — two consecutive unjustified absences, or three unjustified absences in any calendar month, or repeated absences on days before or after official holidays (días festivos). Employers must document each absence, the absence notification sent to the worker, and the lack of a valid justification before invoking this causal.

The carta de despido is needed when an employer discovers abandonment of work (abandono del trabajo — CT Article 160 No. 4) — typically the abrupt unannounced departure from the workplace during working hours without authorization. This is distinct from voluntary resignation: abandonment occurs mid-workday, without notice, and often without the worker communicating a reason. Employers must document the departure time, attempts to contact the worker, and failure to receive any explanation before issuing the dismissal letter.

A CT Article 160 No. 7 (incumplimiento grave) dismissal is needed when a worker commits a serious, documented breach of a specific contractual obligation — such as persistent violation of the Reglamento Interno de Orden, Higiene y Seguridad (RIOHS) safety protocols, repeated failure to achieve minimum performance standards explicitly included in the employment contract, or unauthorized disclosure of confidential information governed by Ley N° 19.628 (data protection).

A valid Dismissal for Cause Letter Art. 160 Chile under Código del Trabajo Articles 160 and 162 must contain the following essential elements — failure to include any of them may render the dismissal unjustified with surcharges of 80–100% under CT Article 168:

Party Identification: Full legal name or razón social of the employer with RUT (SII), domicile, and authorizing representative. Full legal name, RUT, cédula de identidad, position (cargo), department, and domicile of the worker being dismissed.

Specific CT Article 160 Causal with Numeral: Express citation of CT Article 160 and the precise numeral and sub-paragraph invoked — No. 1 (falta de probidad), No. 1 bis (acoso laboral or sexual), No. 3 (unjustified absences), No. 4 (abandonment), No. 5 (reckless acts), No. 6 (intentional material damage), or No. 7 (grave breach of contract). The Corte Suprema has ruled that citing merely 'Article 160' without the numeral is insufficient — the worker must know exactly which causal is alleged.

Detailed Factual Description (Hechos que Constituyen la Causal): A precise, chronological narrative of the specific facts constituting the invoked causal — including dates of each incident, location, parties involved, witnessed by whom, and how the acts constitute the specific causal. For CT Article 160 No. 1 (falta de probidad): describe the specific acts of dishonesty, the amounts or assets involved, and the evidence. For No. 1 bis (acoso): summarize the investigation findings, the dates and nature of harassing acts, and the investigation process under RIOHS. For No. 3 (absences): list each absence date, the notification sent to the worker, and the absence of justification. For No. 7 (grave breach): identify the specific contractual obligation breached, prior warnings (amonestaciones) issued, and the persistent nature of the breach.

Prior Disciplinary History (Antecedentes Disciplinarios): For causales based on repeated conduct (No. 3 — absences, No. 7 — grave breach), document prior written warnings (amonestaciones escritas) issued under the RIOHS disciplinary procedure, any suspension (suspensión), and evidence that the worker was informed of the consequences of further misconduct. The Dirección del Trabajo requires that proportionality (principio de proporcionalidad) be observed before invoking a CT Article 160 causal.

Investigation Documentation for Harassment (Acoso): For CT Article 160 No. 1 bis dismissals, attach or reference the written investigation report (informe de investigación) prepared under CT Articles 211-A to 211-E or RIOHS protocol, the findings, the accused worker's written defence, and the date the investigation was formally concluded and communicated to the Inspección del Trabajo under CT Article 211-D.

Effective Termination Date: The specific date on which the dismissal takes effect — CT Article 160 dismissals are effective immediately upon delivery of the carta de despido, without any advance notice requirement or prior notice period.

Proportional Benefits and Finiquito: Acknowledgment that the dismissed worker, despite having no severance entitlement, retains the right to feriado proporcional (CT Article 73), gratificación proporcional (CT Articles 47–52), and outstanding remuneration. Request for finiquito ratification before a ministro de fe under CT Article 177.

Social Security Compliance (Ley Bustos-Seguel): Mandatory declaration under CT Article 162 inciso 5 that all AFP, FONASA/ISAPRE, AFC Chile (Ley N° 19.728), and Ley N° 16.744 accident insurance contributions are current. Non-compliance voids the dismissal regardless of the Art. 160 causal proven.

Delivery and DT Filing: Confirmation that the carta will be delivered personally or by registered mail (carta certificada) and a copy filed with the Inspección del Trabajo within three business days of separation under CT Article 162.

Forms-legal.com provides this Dismissal for Cause Letter Art. 160 Chile template as a reference. Given that failed CT Article 160 dismissals attract surcharges of 80–100% over standard severance under CT Article 168, employers must ensure the factual record fully supports the invoked causal before issuing this letter — consultation with an abogado laboralista is strongly recommended. Los usuarios de forms-legal.com pueden descargar este documento de forma gratuita en formato PDF o DOCX, completar los campos del formulario guiado y obtener un documento listo para firma.