Termination Letter Chile (Carta de Despido)

Termination Letter Chile (Carta de Despido) is a mandatory written communication governed by the Código del Trabajo de Chile (CT) Articles 159 through 171, by which an employer (empleador) formally notifies a worker (trabajador) of the termination of the individual employment contract (contrato individual de trabajo), specifying the legal grounds (causal de terminación), the factual basis supporting those grounds, and the effective date of termination. Article 162 of the Código del Trabajo establishes that the employer must deliver the carta de despido personally to the worker or send it by registered mail (carta certificada) to the worker's last known domicile, with a copy sent simultaneously to the Inspección del Trabajo of the corresponding jurisdiction within three business days of the separation date.

The Dirección del Trabajo (DT) — the Chilean government agency under the Ministerio del Trabajo y Previsión Social responsible for enforcing labour legislation — supervises compliance with the termination notification requirements and processes worker complaints (denuncias laborales) regarding irregular dismissals. The DT's Inspección del Trabajo in each región maintains records of all cartas de despido received and provides free mediation services (mediación laboral) when workers challenge their dismissal.

Article 159 of the Código del Trabajo enumerates the mutual causes of contract termination (causales de terminación del contrato) that do not generate severance liability: mutual agreement of the parties (mutuo acuerdo — numeral 1), resignation of the worker (renuncia del trabajador — numeral 2), death of the worker (muerte del trabajador — numeral 3), expiration of a fixed-term contract (vencimiento del plazo convenido — numeral 4), conclusion of the specific work contracted (conclusión del trabajo o servicio — numeral 5), and force majeure (caso fortuito o fuerza mayor — numeral 6).

Article 160 establishes the grounds for termination without severance (despido sin indemnización) due to worker misconduct (causales de caducidad): serious lack of probity in the performance of duties (falta de probidad — numeral 1); harassment (acoso laboral or acoso sexual — numeral 1 bis, introduced by Ley N° 20.005); physical violence, threats, or injuries (vías de hecho, injurias o conducta inmoral grave — numeral 1); unjustified absence from work for two consecutive days or three days in a month (inasistencias injustificadas — numeral 3); abandonment of work (abandono del trabajo — numeral 4); reckless acts affecting workplace safety (actos, omisiones o imprudencias temerarias — numeral 5); material damage to property (perjuicio material causado intencionalmente — numeral 6); and serious breach of contract obligations (incumplimiento grave de las obligaciones — numeral 7).

Article 161 provides for termination by employer initiative for business needs (necesidades de la empresa, establecimiento o servicio) — including rationalization, modernization, production downturns, and market changes — and for the specific case of desahucio (employer-initiated termination without stated cause) available only for workers in positions of exclusive trust (cargos de exclusiva confianza) such as gerentes, subgerentes, and apoderados, or domestic workers (trabajadores de casa particular) regulated by CT Articles 146 through 152. Termination under Article 161 requires payment of severance (indemnización por años de servicio) equivalent to one month's salary per year of service, capped at eleven years (330 days) under CT Article 163, plus substitute notice indemnity (indemnización sustitutiva del aviso previo) equivalent to one month's salary if thirty days' advance notice was not provided.

The Juzgados de Letras del Trabajo — specialized labour courts established by Ley N° 20.087 — hear claims for unjust dismissal (despido injustificado) under CT Article 168, wrongful termination (despido indebido), and the special action for labour rights violation (tutela laboral) under CT Article 489. Workers must file their judicial claim within sixty business days (sesenta días hábiles) from the separation date under CT Article 168, with a mandatory prior mediation stage before the Dirección del Trabajo under CT Article 486.

A Termination Letter Chile is required by the Código del Trabajo Article 162 whenever an employer terminates an individual employment contract, regardless of the legal grounds invoked — the carta de despido is a mandatory procedural requirement whose omission or deficiency can result in the dismissal being declared unjustified (despido injustificado) by the Juzgado de Letras del Trabajo, triggering additional severance surcharges under CT Article 168.

Employers dismissing workers for business needs (necesidades de la empresa) under CT Article 161 must deliver the carta de despido at least thirty calendar days before the effective termination date — or pay the indemnización sustitutiva del aviso previo equivalent to one month's last remuneration. Large Chilean employers — including Falabella, LATAM Airlines, Cencosud, CMPC, SQM, Codelco, BHP Escondida, and BancoEstado — maintain standardized carta de despido templates reviewed by their departamentos de recursos humanos and legal counsel to ensure compliance with DT requirements.

Employers terminating workers for cause (causal de caducidad) under CT Article 160 — including serious misconduct, workplace harassment (acoso laboral under Ley N° 20.607), sexual harassment (acoso sexual under Ley N° 20.005), unjustified absences, or material damage — must specify the precise factual circumstances constituting the invoked ground in the carta de despido. The Corte Suprema de Chile has consistently held that insufficiently detailed cartas de despido — failing to describe specific acts, dates, and circumstances — render the dismissal unjustified regardless of the employer's actual reasons.

Human resources departments conducting collective layoffs (despidos colectivos) during corporate restructuring, facility closures, or economic downturns must prepare individual cartas de despido for each affected worker, as Chilean labour law does not recognize collective termination procedures — each dismissal is processed individually before the Inspección del Trabajo. The Superintendencia de Seguridad Social (SUSESO) administers the unemployment insurance system (Seguro de Cesantía) under Ley N° 19.728, funded through joint employer-worker contributions to the Administradora de Fondos de Cesantía (AFC Chile), and workers need the carta de despido to access unemployment benefits.

Small and medium enterprise (PYME) owners registered with SERCOTEC or CORFO who employ workers under fixed-term contracts (contratos a plazo fijo) or project-based contracts (contratos por obra o faena) must issue cartas de despido when the contract expires or the project concludes under CT Article 159 numerals 4 and 5, documenting the specific termination cause to prevent subsequent judicial challenges before the Juzgado de Letras del Trabajo.

A valid Termination Letter Chile under Código del Trabajo Article 162 must contain the following essential elements to constitute a legally compliant carta de despido that protects the employer from unjust dismissal claims and ensures the worker receives adequate notice of their rights:

Employer Identification: Full legal name or razón social of the employer (empresa or persona natural empleadora), RUT number (Rol Único Tributario issued by the Servicio de Impuestos Internos — SII), registered address (domicilio), and the name and title of the representative signing the letter (typically the gerente general, gerente de recursos humanos, or authorized representative with poder suficiente). For corporate employers, include the company type (SpA, SRL, S.A.) and the representative's authority under the company's escritura de constitución or special power of attorney.

Worker Identification: Full legal name, RUT number, position or job title (cargo), department or work location (lugar de prestación de servicios), and the date the employment relationship commenced (fecha de inicio de la relación laboral). The contract start date is essential for calculating severance (indemnización por años de servicio) under CT Article 163 — each complete year of service from the start date generates one month's indemnity.

Legal Grounds for Termination (Causal de Terminación): Express citation of the specific article, numeral, and paragraph of the Código del Trabajo under which the termination is effected. The carta must specify whether termination is based on: CT Article 159 (mutual causes — mutual agreement, resignation, contract expiration, work conclusion, force majeure); CT Article 160 (worker misconduct — falta de probidad, harassment, unjustified absences, abandonment, reckless acts, material damage, serious breach); or CT Article 161 (employer initiative — business needs or desahucio for positions of exclusive trust). The Dirección del Trabajo's Dictámenes (administrative rulings) and the Corte Suprema's jurisprudence require that the specific causal be precisely identified — citing merely "Article 160" without specifying the numeral is insufficient.

Factual Description (Hechos que Constituyen la Causal): A detailed narrative of the specific facts, acts, omissions, or circumstances that constitute the invoked termination ground. For CT Article 160 dismissals, describe: the date(s) of the conduct, the nature of the misconduct, any prior warnings (amonestaciones) issued, investigation findings (including any acoso laboral or acoso sexual investigation under the Reglamento Interno de Orden, Higiene y Seguridad — RIOHS required by CT Article 153), witness statements, and documentary evidence. The Corte Suprema has established that vague or generic factual descriptions invalidate the dismissal — the worker must be able to understand exactly what conduct motivated the termination.

Effective Date of Termination (Fecha de Término): The specific date on which the employment relationship ceases. For CT Article 161 terminations with advance notice, this date must be at least thirty calendar days after the carta de despido is delivered — or the employer must pay the indemnización sustitutiva del aviso previo. For CT Article 160 dismissals for cause, the termination takes effect immediately upon delivery of the carta.

Severance and Settlement Amounts (Indemnizaciones): Detailed calculation of all amounts owed to the worker upon termination: indemnización por años de servicio (one month per year of service, capped at eleven years under CT Article 163, calculated on the última remuneración mensual including sueldo base, gratificación, and other habitual payments under CT Article 172); indemnización sustitutiva del aviso previo (one month's salary if thirty days' notice not provided); proportional annual vacation (feriado proporcional under CT Article 73); proportional Christmas bonus (aguinaldo proporcional if contractually agreed); and any other pending payments. The total settlement amount (finiquito) must be ratified before the Inspección del Trabajo, a Notario Público, or the Secretario Municipal under CT Article 177.

Pension and Unemployment Insurance Status (Estado Previsional): Confirmation that the employer has paid all mandatory social security contributions (cotizaciones previsionales) up to the termination date — including AFP pension contributions (Administradora de Fondos de Pensiones — AFP Habitat, AFP Provida, AFP Capital, AFP Cuprum, AFP Modelo, or AFP Uno, regulated by the Superintendencia de Pensiones under Decreto Ley N° 3.500), health insurance contributions to FONASA or the worker's ISAPRE, and unemployment insurance contributions to the AFC Chile under Ley N° 19.728. CT Article 162 inciso 5 establishes the "Ley Bustos-Seguel" rule: if the employer has not paid all previsional contributions at the time of dismissal, the termination has no legal effect (nulidad del despido) and the employer must continue paying the worker's salary until all contributions are current.

Delivery and Filing Requirements: The carta de despido must be delivered personally to the worker (entrega personal) or sent by registered mail (carta certificada) to the worker's last known address, with a copy simultaneously filed at the Inspección del Trabajo of the corresponding jurisdiction, all within three business days of the separation date under CT Article 162. The employer must retain proof of delivery (acuse de recibo or certificado de correos) as evidence of compliance.

Forms-legal.com provides this Termination Letter Chile template as a reference for employers complying with Código del Trabajo termination notification requirements. Given the significant financial consequences of procedural deficiencies — including severance surcharges of 30% to 100% under CT Article 168 for unjustified dismissals — employers should consult with an abogado laboralista (labour lawyer) before issuing termination letters for complex cases. 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.