Understanding Chile’s Law 16.744 on Occupational Accidents
General Information
Definition of Health
The WHO defines health as “a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.”
Serious Accident Circumstances
A serious accident is considered to have occurred under the following circumstances:
- Forced evacuation
- Immediate amputation or loss of a body part
- Need for resuscitation or rescue
- Falls from a height of over two meters
Law 16.744 Publication Date
Law 16.744 was published in the Official Gazette on February 1, 1968.
Principles of Law 16.744
The principles of Law 16.744 are solidarity, universality, integrity, and equality.
Individuals Protected by Law 16.744
The following individuals are protected by Law 16.744:
- All employees
- Union leaders
- Freelance workers
- Family workers and family microenterprises
- All students of fiscal or private institutions
- Public officials in the civil administration of the state, municipalities, and decentralized state institutions
Individuals Not Protected by Law 16.744
Members of the Armed Forces and Police are not protected by Law 16.744, as they have their own systems: CAPREDENA and DIPRECA.
Administration and Funding
Administration of Social Insurance
Social insurance against occupational accidents and diseases is administered by:
- Private Management:
- ACHS
- Mutual Security
- IST
- State Administration:
- INP
- Health Service
- Delegated Administration: Entities with over 2000 employees authorized by the Superintendency of Social Security can manage social insurance for their workers.
Funding of Law 16.744
Law 16.744 is funded by:
- Contribution Base: All companies pay 0.95% of each employee’s taxable remuneration.
- Additional Differentiated Contribution: Companies pay an additional contribution based on the activity and risks involved, ranging from 0 to 3.4%.
- Proceeds from fines applied by administrative agencies.
- Amounts recovered through the right to repeat under Articles 56 and 69 of Law 16.744.
Contingencies, Services, and Obligations
Contingencies Covered by Law 16.744
Law 16.744 covers occupational accidents, commuting accidents, and occupational diseases.
Services Provided by Law 16.744
Law 16.744 provides the following services:
- Medical Benefits: To cure or rehabilitate the worker, restoring their ability to work.
- Economic Benefits: For temporary disability, permanent disability, death, and survivor’s pension.
- Survivor’s Benefits: In the event of the death of a disabled person receiving a pension, the spouse, children, mother, and children of the insured’s family ancestors or descendants are entitled to this pension.
Obligations under Law 16.744
Obligations of the State:
- Supervision and control of prevention, health, and safety in all workplaces through the Health SEREMI.
- Specification of required health and safety measures in companies through health services and imposition of penalties for non-compliance.
- Supervision of medical facilities of other administrative bodies, the awarding of medical benefits, and prevention activities.
Obligations of Administrative Bodies:
- Delivery of all health benefits.
- Prescription of health and safety measures for companies. The SEREMI and the Department of Labor can require the implementation of these measures.
- Implementation of increases or reductions to the additional differentiated contribution.
Obligations of Companies:
- Inform workers about work-related risks, preventive measures, and correct work practices.
- Maintain up-to-date hygiene and safety regulations.
- Implement all hygiene and safety measures specified by law.
- Provide personal protective equipment (PPE) to workers free of charge.
- Maintain up-to-date accident statistics.
Obligations of Workers:
- Comply with the rules of procedure.
- Use PPE.
Supreme Decrees and Other Regulations
Supreme Decree No. 54
Regulates the establishment and operation of joint committees on health and safety.
Supreme Decree No. 594
Approves regulations on health and environmental conditions in the workplace.
Supreme Decree No. 40
Regulates the prevention of occupational hazards.
Joint Committee on Health and Safety (CPHYS)
Companies with more than 25 workers must establish a CPHYS, regardless of the business activity or payment of additional contributions.
Election of CPHYS Members
Worker representatives are elected by vote. The first three with the most votes are titulares (holders), and the next three are alternates.
Functions of CPHYS
The functions of CPHYS include:
- Advising and educating workers on the proper use of protective materials.
- Investigating the causes of accidents.
- Monitoring compliance with preventive measures.
- Promoting training activities.
- Determining if an accident occurred due to worker negligence.
Contract Act 20,123
Regulates how companies hire and subcontract their personnel.
Department of Prevention of Risks
Commercial, industrial, or mining companies with more than 100 employees must have a risk prevention department B.