translated from Spanish: President Piñera signed bill improving employment protection law and cessation insurance

This day at the Palacio de La Moneda, the President of the Republic, Sebastián Piñera, signed the bill that improves the protection of employment and cessation insurance. The representative asserted that the current employment protection law through census insurance benefits 650,000 workers. In addition, he specified that “today we are going to send congress a bill that improves the law on protection of employment through cessation insurance in two ways first increases its coverage, allows more workers to benefit, and second improvements the benefits, in effect, this bill flexes many of the conditions or requirements for accessing the insurance that will allow more Chilean workers compensation through cessation insurance during the time they don’t have a job.” Referring to benefits, he explained that “normally, cessation insurance compensates for the loss of income of people who are unemployed by handing them the first month equivalent to 70% of the lost salary and from there has a declining evolution, this project strengthens those benefits by maintaining 70% compensation during the first month, but establishing a minimum of 55% compensation of the lost wage during the first 4 months of unemployment.” In addition, he noted that if the pandemic situation is extended “this initiative allows to increase the number of months in which unemployed Chilean workers receive through cessation insurance compensation of the wage they have ceased to receive”.

Original source in Spanish