The law adopted by the Chilean lawmakers puts an end to the “multi-RUT” practice: making several branches of the same company look like different employers in the administration’s eyes. For a long time, unions had been asking that this maneuver be removed as it reduced their bargaining ability and allowed employers to elude their social security obligations.
Multi-RUT, a practice that has been disputed for a long time. On Tuesday, June 17, an overwhelming majority of Chilean MPs approved the reform introducing a new statutory definition of the concepts of company and employer. The purpose of this bill, known as the “multi-RUT Act,” is to get rid of the multiplication of the employer figure in a single company. Indeed, businesses can register each of their branches under different registers, i.e. with different RUTs (“Rol único tributario” – corp
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