Chilean Severance Pay Calculation Form

Managing employee terminations in Chile requires strict compliance with the Chilean Labor Code (Código del Trabajo), including accurate calculation of severance pay (indemnización por años de servicio) and proper documentation for Superintendencia de Seguridad Social (SUSESO) and Dirección del Trabajo oversight.

This Chilean severance pay calculation and notification form helps Chilean employers, HR departments, and legal professionals accurately calculate termination benefits, document the cause of dismissal, and ensure compliance with Chilean labor regulations including Articles 160, 161, and 163 of the Labor Code.

What this form helps you do

Accurate severance calculations: The form automatically calculates severance entitlements based on years of service, monthly salary, and termination cause, factoring in the maximum 11-year cap and monthly salary limits according to Chilean law.

Legal compliance documentation: Capture all required information for termination notices including RUT (Rol Único Tributario) numbers, employment dates, termination cause classification (needs of the company, voluntary resignation, justified dismissal), and supporting documentation.

Regulatory alignment: Ensure your termination process meets Chilean Labor Code requirements, including proper notification periods (30 days or payment in lieu), calculation of proportional benefits (vacation, aguinaldo), and documentation for SII (Servicio de Impuestos Internos) tax withholding.

Audit trail: Create a complete record of severance calculations and approvals that satisfies labor inspectorate requirements and protects your organization in case of disputes with the Dirección del Trabajo.

Who should use this form

This template is designed for Chilean businesses, multinational companies with Chilean operations, HR managers, employment lawyers, payroll administrators, and labor relations specialists who need to process employee terminations in compliance with Chilean labor law.

Streamline your severance process with Paperform

Beyond simple data collection, this Paperform template provides calculation fields that automatically compute severance amounts based on Chilean formulas, conditional logic that adjusts required fields based on termination cause, and the ability to generate professional termination documentation.

Connect your severance form to Stepper to automate your entire termination workflow—trigger approval processes for HR directors and legal counsel, automatically generate settlement agreements and finiquito documents, update payroll systems with final payment calculations, and send notifications to finance teams for reserve allocation and payment processing.

For organizations requiring signatures on settlement agreements or finiquito documents, integrate Papersign to collect legally binding eSignatures from both employer and employee, creating a complete audit trail that satisfies Chilean labor authorities and protects your organization from future disputes.

With Paperform's SOC 2 Type II compliance and enterprise-grade security, you can trust that sensitive employee data and financial information remain protected throughout the termination process.