On 19 March, Budget Minister Ignacio Briones announced a massive $12 billion ‘Economic Emergency’ plan, the equivalent of 4.7% of domestic GDP in a bid to protect and safeguard Chile’s economy. Included in these measures are two draft laws aimed at supporting domestic businesses and employees during the Covid-19 crisis, with a provision for partial unemployment being a notable element. The Labor authorities also recalled and clarified certain aspects of the labor legislation that will be applying during the Covid-19 crisis period.
Salary levels guaranteed. The ‘Covid-19’ draft legislation to ‘safeguard incomes’ seeks to guarantee the salaries of those, who, due to the health crisis, have to stay home and are unable to continue via teleworking. Salary payment protection is possible if there is an employer-employee agreement and when the health authorities make this decision. Employees will be compensated from the unemployment insurance fund (Seguro de Cesantía), although the exact amounts still have not been detailed by the government.
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