Exploring Chile's transition from a 45 to a 40-hour work week, with insights on the impact this has on work-life balance, happiness, and productivity. Hear from workers and businesses in Chile about the positive and negative implications of this gradual reduction in working hours.
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Quick takeaways
Chile is implementing a gradual reduction from a 45-hour work week to a 40-hour week by 2028 for improved work-life balance and productivity.
Businesses are facing challenges in adjusting to new working hour regulations, with small businesses considering hiring part-time workers and monitoring economic impacts.
Deep dives
Chile's Transition to a 40-Hour Work Week
Chilean politicians approved a law requiring businesses to cut their work hours gradually from a 45-hour week to a 40-hour week by 2028, aiming to improve work-life balance and productivity. Companies have flexibility in reducing hours annually, with a deadline to reach 44 hours by April. Small businesses like Pastelier de Villa face challenges as they adjust to new working hour regulations, considering hiring part-time workers and potential impact on pricing.
Implementing the 40-Hour Week Law
Businesses, including Volkul, proactively transitioned to a 40-hour week before the law's mandate, citing safety concerns during social unrest as a reason for the change. Cindy Nunez, an employee, appreciates the improved work-life balance, spending more time with family without a pay cut. Advice from experienced businesses emphasizes gradual changes, monitoring economic impacts, and experimenting with different work patterns.
Navigating Changes for Business Compliance
Adapting to the new law involves adjusting payroll systems, tracking working hours, and ensuring compliance. Companies will need to institute new processes to manage extra hours effectively, considering potential budget impacts from additional payments. Time and attendance systems offer monitoring capabilities, but challenges remain in maintaining productivity and economic stability during the transition.
We look at the implications as the Latin American country gradually reduces from 45 hours.
In April 2023 politicians approved a law in congress saying that businesses need to move towards cutting their hours to help get a better work life balance for employees.
This reduction is happening gradually, and the working week is getting shorter by at least one hour per year, over a maximum of five years.
We speak to workers and businesses in Chile about the impact - good and bad - that this is having.
Presenter: Jane Chambers
Technical production: Matthew Dempsey
(Image: A group of workers on lunchbreak in Santiago. Credit: Getty Images)
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