CL · Expiry & renewal tracking
Never let a fixed-term contract turn open-ended without your decision
A fixed-term employment contract in Chile may not last more than one year, or two for managers and holders of a professional or technical higher-education degree (Labour Code, Article 159 No. 4). It becomes open-ended on the second renewal or if the worker keeps working with the employer's knowledge after expiry.
In Chile an employment contract ends, among other grounds, when the agreed term expires. A fixed-term contract may not exceed one year; for managers or persons holding a professional or technical degree from a state or state-recognised higher education institution, it may not exceed two years (Labour Code, Article 159 No. 4). The term of the contract is one of the minimum terms the written contract must contain (Article 10 No. 6), and the contract must be put in writing within fifteen days of the worker joining, or within five days for contracts for a specific work or service or lasting less than thirty days (Article 9).
The contract becomes open-ended if the worker keeps working with the employer's knowledge after the term has expired, and also on the second renewal of a fixed-term contract. In addition, a worker is legally presumed to have been hired for an indefinite period if they have worked discontinuously under more than two fixed-term contracts for twelve months or more within a fifteen-month period counted from the first hiring (Article 159 No. 4).
If the contract ends on expiry of the term, the employer must notify the worker in writing, in person or by registered letter to the address stated in the contract, stating the ground and the facts on which it is based, within three working days after the separation, and send a copy to the Labour Inspectorate within the same period (Article 162). On termination the employer must report in writing the payment status of social security contributions; if they are not fully paid, the dismissal does not end the contract (Article 162).
At a glance
| Rule | Labour Code (DFL 1 of 2002), Article 159 No. 4 |
|---|---|
| Maximum length | One year (Article 159 No. 4) |
| Managers and graduates | Up to two years for managers and holders of a professional or technical degree from recognised higher education (Article 159 No. 4) |
| Becomes open-ended | If the worker keeps working with the employer's knowledge after expiry, or on the second renewal (Article 159 No. 4) |
| Presumption of open-ended contract | More than two fixed-term contracts with discontinuous work for 12 months or more within 15 months of the first hiring (Article 159 No. 4) |
| Written contract | Within 15 days of joining, or 5 days for contracts for a specific work or service or lasting under 30 days (Article 9) |
| Termination notice | In writing, within 3 working days of the separation, with a copy to the Labour Inspectorate (Article 162) |
| Contributions | Report their payment status on termination; without full payment the dismissal does not end the contract (Article 162) |
Under Article 159 No. 4, it is the second renewal that turns a fixed-term contract into an open-ended one; continuing to work after expiry has the same effect. A contract for a specific work or service is a separate ground (Article 159 No. 5).
Who is responsible?
The employer must put the contract and its term in writing (Labour Code, Articles 9 and 10), decide before expiry whether to end it, renew it or let it become open-ended (Article 159 No. 4), and notify the termination in writing to the worker and the Labour Inspectorate (Article 162). In practice the HR team keeps the expiry date of each contract.
If the deadline passes
If the worker keeps working with the employer's knowledge after the term has expired, the contract becomes open-ended by law (Labour Code, Article 159 No. 4). A late termination notice, or one without the contribution information, also has consequences: without full payment of contributions the dismissal does not end the contract and the employer must keep paying remuneration until it is validated (Article 162).
Count the renewals, not just the dates
Each fixed-term contract has its own expiry date, but the law also counts renewals: the second renewal makes it open-ended, and more than two fixed-term contracts over 12 months or more within 15 months create a presumption of an open-ended contract (Labour Code, Article 159 No. 4). Record the renewal number and the first hiring date in each contract's notes.
Tracking it with ExpirySuite
- Add each fixed-term contract and record the agreed end date as the expiry date; note the renewal number and the first hiring date in the notes.
- Email reminders arrive 60, 30, 14, 7 and 1 day before expiry and on the expiry day, leaving time to decide whether to end, renew or make the contract open-ended and to prepare the notice and contribution statement.
- The worker or line manager can upload the signed renewal annex or termination notice through a secure link that is valid for 14 days and needs no account.
- Assign a responsible person, such as the HR analyst; if the expiry date passes without action, managers get further reminders 3, 7 and 14 days later.
Frequently asked questions
- How long can a fixed-term contract last in Chile?
- Up to one year; for managers and holders of a professional or technical degree from a state or state-recognised higher education institution, up to two years (Labour Code, Article 159 No. 4).
- How many times can it be renewed?
- The second renewal of a fixed-term contract turns it into an open-ended contract (Article 159 No. 4).
- What if the worker keeps working after expiry?
- If they keep working with the employer's knowledge after the term has expired, the contract becomes open-ended (Article 159 No. 4).
- Must the end of the contract be notified?
- Yes. The employer gives written notice of termination on expiry within three working days after the separation, with a copy to the Labour Inspectorate, and reports the payment status of social security contributions (Article 162).
Sources
Last checked: Oct 11, 2026 · This page summarises official sources for general information and is not legal advice. Check the linked sources for current rules and fees.
Made for fixed-term employment contract (Chile)
A ready template for fixed-term employment contract (Chile) with sensible validity defaults, so you enter less and track more.
Reminders on time
Email alerts at 60, 30, 14, 7 and 1 day before each fixed-term employment contract (Chile) expires, plus overdue escalation to managers.
Assign an owner
Give each fixed-term employment contract (Chile) an owner and let employees update their own via a secure link — no login needed.