Legislation Operations in Chile: A Look Behind the Scenes

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As part of our ongoing series exploring the inner workings of legislation across various countries, we turn our attention to Chile, where we delve into the intricacies of compliance enforcement, data protection, and employee rights.

Compliance Enforcement

In Chile, compliance with sanctions-blocking legislation is enforced by local authorities through a combination of:

• Self-reporting: Companies are required to report any alleged violations of laws or regulations.
• Whistleblowing: Employees or external parties can report suspected misconduct to the relevant authorities.
• Media reports: News outlets may report on allegations of wrongdoing, leading to investigations and enforcement actions.

According to experts, allegations of misconduct often come to light through:

• Internal investigations
• Social media
• Whistleblowers

While there isn’t a specialist data protection agency, courts play a crucial role in enforcing data protection provisions.

Data Protection

Chile has a data protection regime governed by Law No. 19,628, which regulates the management and treatment of personal data and databases. However, the lack of regulation surrounding internal investigations creates uncertainty about:

• The limits of an employer’s rights and powers when conducting such investigations.
• The use of digital discovery tools, including emails.

This has led to concerns over the protection of employees’ personal data during internal investigations.

Employee Rights

When it comes to employee rights during internal investigations, Chilean labour case law emphasizes the importance of:

• Respecting due process guarantees
• Employees’ constitutional rights

While there is no explicit distinction between officers and directors for these purposes, companies must take appropriate measures to ensure that investigation proceedings respect employees’ rights. Employees implicated in misconduct may retain their primary labour rights, including continued salary payments.

Privileged Material

In Chile, there is no specific mechanism to protect privileged material during:

• Dawn raids
• Search warrants

Companies can only challenge the seizure of items by opposing the warrant or refusing compliance and later attempting to limit its scope in court.

Whistleblowing

Chile does not have a comprehensive whistleblowing framework. However, companies are required to establish an adequate channel for reporting improper conduct. While financial incentives for whistleblowers are rare, employees who report misconduct may enjoy legal protections under Chilean labour law.

Legislative Developments

The Chilean government has introduced various laws and regulations aimed at strengthening:

• Corporate governance
• Transparency

For instance, Law No. 20,393 requires companies to establish an effective compliance program, which includes a channel for reporting improper conduct.

Conclusion

As we continue our exploration of legislation operations in Chile, it becomes clear that while there are challenges and uncertainties, the country’s legal framework is gradually evolving to address concerns around data protection, employee rights, and corporate accountability. As the business landscape continues to shift, it will be essential for companies operating in Chile to stay abreast of these developments and adapt their compliance strategies accordingly.

Sources

• Law No. 19,628 (Chilean Data Protection Act)
• Law No. 20,393 (Compliance Program Regulation)
• Chilean Labour Code
• Expert interviews with legal professionals and business leaders in Chile