The Chilean government seeks to include in the public sector readjustment bill a norm requiring justification for dismissing contract workers, sparking debate as opposition labels it a 'tie-down law'. Nearly 70% of the 411,136 central administration workers are under this contract type, mostly professionals. The Finance Minister defends the measure as protection against arbitrariness.
The debate centers on a provision the Chilean government wants to add to the public sector readjustment bill to restrict future dismissals of officials right before the government change in March 2026. This initiative responds to a request from the public sector workers' table but has alarmed opposition parliamentarians and the team of president-elect José Antonio Kast, who call it a “tie-down law”.
From the Executive, Finance Minister Nicolás Grau defended the norm on ADN radio: “What the norm does is that, if a worker contracted in the public sector is dismissed, it must be justified. And the worker has the right to challenge that dismissal in the Comptroller's Office, and the Comptroller's Office will have to review the justification”. Grau dismissed “tie-down” accusations, arguing it aims to “avoid arbitrary dismissals” and not prevent them entirely, unlike what is currently resolved in justice courts.
This discussion is framed by the contractual reality of the public sector. According to the 2024 Human Resources Report, of the 411,136 officials in the central administration, 280,149 are on contract, equating to 68.1%. Of these, 163,660 (58.4%) are professionals, followed by technicians (61,776, 22.1%) and administrative staff (53,831, 19.2%). The Ministry of Science and Technology leads with 97% of its staff on contract, followed by Environment (96%) and Transport and Mining (95.7%).
Demographically, women predominate (179,566) over men (100,581), with two non-binary, and most in the 35-44 age group (99,360). The norm excludes trust advisors, who must resign with the new government, as Grau clarified on Infinita radio: “People in the cabinets (...) have to leave along with the ministers”.
Experts like economist Ingrid Jones from LyD propose a single contracting modality via public competition and merit, with evaluation and career paths. Juan Francisco Galli from Pivotes advocates for a new statute eliminating distinctions between permanent, contract, and honorary positions, urging public employment reform for the incoming government.
The norm specifies that non-renewal of contracts requires an administrative act founded on objective criteria, and officials with at least two years of service can challenge before the Comptroller's Office, unless they have already filed judicial actions.