IMPACT – MEDIUM
What is the change? Workers at Chile’s Internal Revenue Service and Registrar’s Offices have gone on strike. The work stoppages are likely to delay the issuance of provisional national identification numbers (RUTs) and Chilean ID cards.
What does the change mean? Until the strikes are resolved, foreign employees will be unable to obtain provisional RUTs (which are issued by the Internal Revenue Service) or Chilean ID cards (issued by the Registrar’s Office). This will hinder employers’ ability to enroll foreign employees on their payrolls.
Background: Foreign nationals require provisional RUTs or Chilean IDs not only for employment purposes, but also for services such as opening bank accounts and obtaining mobile phones. Those who are delayed in receiving a Chilean ID should be able to continue using provisional RUTs until they receive their ID. Those awaiting provisional RUTs will likely have wait for the strike to end before they are able to obtain them.
BAL Analysis: The strike may delay start dates for foreign employees. BAL will continue to monitor events in Chile and provide updates as needed.
This alert has been provided by the BAL Global Practice group and our network provider located in Chile. For additional information, please contact your BAL attorney.
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