1.  Is there a law on whistleblowing in your country?
  2. Does local law require private entities to establish a whistleblowing system? (If so, which private entities?)
  3. What legal risks does an entity face for not establishing a reporting channel?
  4. Are there any mandatory requirements for establishing a reporting channel under local labour law?
  5. Does local law require employee involvement when establishing a whistleblowing system?
  6. Does local law prohibit employees from disclosing irregularities/misconduct externally, e.g. to the public?
  7. Is there legal whistleblower protection aimed at preventing discrimination against or dismissal of a whistleblower (as employee) under local labour law?
  8. Are there any mandatory requirements and/or accompanying measures under local data protection law?
  9. Does local law prohibit a group of entities from different jurisdictions from setting up a joint whistleblowing system?

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Chile
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1. Is there a law on whistleblowing in your country?

There is no specific law on whistleblowing. However, there are some regulations that establish protocols for filing complaints regarding unlawful or immoral activities in a company.

  1. Law No. 20,393 of December 2009 establishes the corporate criminal liability for certain crimes, including bribery of Chilean and foreign public officials, money laundering and terrorism financing. This law establishes a crime prevention system for legal entities which includes internal reporting channels that must be implemented within the Company.
  2. From a labour point of view, Decree Law No. 2 of 1976 states that any person may report to the Labour Board any labour-related irregularity that it is observed in a Company. Additionally, the Labour Code indicates that internal reporting channels on employment matters such as sexual harassment and mobbing, must be contained in the internal regulations on order, hygiene, and safety.

2. Does local law require private entities to establish a whistleblowing system? (If so, which private entities?)

Although there is no obligation, Law 20,393 exempts companies from criminal responsibility if they establish an internal crime prevention system.

From an employment point of view, all private entities that have more than 10 employees must have internal regulations on order, hygiene and safety, that establish the internal reporting channels. 

Law No. 20,393 establishes that companies will be criminally liable if they do not comply with the prevention system established by law. Sanctions may be:

  • Dissolution of the legal entity.
  • Permanent or temporary prohibition from entering into acts and contracts with State agencies.
  • Permanent or temporary loss of fiscal benefits, or absolute prohibition from receiving them for a specified period.
  • Fine ranging from 200 to 20,000 “Monthly Tax Units”.
  • Seizure of the unlawfully acquired assets.
  • Publication of the condemnatory judgement.
  • The deposit of a sum equivalent to the investment made in an account held by the treasury (if the crime involves making an investment that exceeds the legal entity’s income).

As a result of employment law obligations, companies risk fines from the Labour Board that can be from 5 to 60 “Monthly Tax Units”, depending on the size of the company.

4. Are there any mandatory requirements for establishing a reporting channel under local labour law?

Internal reporting channels must be indicated in the company’s internal order, hygiene, and safety regulations, which – to become enforceable – must be published during a 30-day term within the company, and then registered at the Labour Board and the Ministry of Health. 

5. Does local law require employee involvement when establishing a whistleblowing system?

During the 30-day term of the publication of the internal order, hygiene and safety regulations of the company, employees can complain to the Labour Board if in their opinion its content (including the whistleblowing system) does not comply with the law. The Labour Board will analyze the situation and decide if amendments should be made.

6. Does local law prohibit employees from disclosing irregularities/misconduct externally, e.g. to the public?

No. Employees can choose to disclose the irregularities/misconduct to the Labour Board or the Courts.

Retaliation against employees due to or as a result of the reporting of irregularities to the Labour Board or the Courts, is considered by our legislation as a violation of the fundamental rights of employees, who may file claims with the labour courts through a special procedure called ‘Procedimiento de Tutela’ (Protection Procedure). If the retaliation took the form of the discharge of the employee and the judge decides it was so, the discharge is considered unfair and, in addition to compensation for lack of prior notice and severance payment with the surcharges that the law considers according to the cause of discharge, the employee is entitled to additional compensation awarded by the Court equivalent to no less than six and no more than eleven monthly salary payments. Additionally, the company will not be able to enter into acts and contracts with State agencies for 2 years.

8. Are there any mandatory requirements and/or accompanying measures under local data protection law?

Article 154 of the Labour Code establishes that the company must keep confidential all information and private data about an employee to which it has access under the employment contract.  The company risks fines of up to 60 Monthly Tax Units for unauthorized disclosure. 

9. Does local law prohibit a group of entities from different jurisdictions from setting up a joint whistleblowing system?

No.