Outsourcing in Chile is allowed but is subject to many regulations. The Chilean law for contractors and subcontractors, that amended the Labor Code, sets forth a number of principles to secure the contractors and subcontractors employee’s rights.
The law prescribes that a regulation will lay down all the specific requirements that the owner of the site should fulfil.
The contractor and subcontractor law stipulates that the owner of the site shall be responsible for the safety of the contractor’s employees.
The law provides that the contractor’s employee has the right to sue either his own employer or the owner of the site or both at his own choice for unpaid salary and holidays as well as compensation for dismissal. The law specifies that to avoid joint and other liabilities, the owner of the site shall ask the contractor for a form, given by the Labor Direction, that states that all legal obligations related to its employees are paid.