Chile Guarantees Employment Continuity When Casino Operators Change
Chile.- 8 October 2026 | www.zonadeazar.com Chile’s Labour Directorate has ruled that a change in the company operating a casino does not require workers to be dismissed or new employment contracts to be signed.
The decision reinforces the employment continuity principle contained in Article 4 of the Labour Code and ensures existing rights and obligations remain in force under the new employer.
Ordinance No. 449
The position is set out in Ordinance No. 449, issued on 24 September 2026 by the Labour Directorate’s Legal Department.
The document followed a request for clarification from Casino de Juegos del Mar, a company owned by Corporación Meier.
Operator Change Does Not Terminate Employment
The authority determined that a total or partial change in the ownership, possession or control of a company does not constitute grounds for terminating employment relationships.
Workers therefore should not be dismissed by the outgoing operator and subsequently rehired by the successful new operator.
Existing Contracts Remain Valid
Individual employment contracts continue to have full effect under the new employer.
The same protection applies to collective agreements already in force, whose conditions must remain valid following the change of operator.
No Need for New Contracts
The Labour Directorate said employment continuity takes effect automatically under the law.
As a result, there is no requirement to:
- Sign new employment contracts.
- Amend existing contracts.
- Execute a separate agreement between operators to create employment continuity.
Contracts May Be Updated
Although it is not mandatory, the parties may agree to update individual contracts.
This can be used to formally record the change of employer and each worker’s existing length of service.
Seniority Is Preserved
Continuity means an employee’s length of service does not restart when a new operator takes control.
Rights linked to the previous employment relationship continue under the company taking over the casino operation.
Casino de Juegos del Mar Request
Casino de Juegos del Mar sought clarification over how the principle should operate during a concessionaire change.
Among its questions was whether the outgoing and incoming operators needed to sign a specific document formalising employment continuity.
The Labour Directorate said they do not.
Cost of Employee Seniority
The company also asked whether accumulated employee seniority should be treated as a cost for bidders seeking a casino operating concession.
The Labour Directorate declined to rule on the issue.
It said the matter falls outside its statutory interpretative powers.
No Dismissal and Rehiring Process
The ruling expressly rejects a structure in which the outgoing company terminates employees before the incoming operator hires them again.
Continuity applies directly by operation of law when the conditions established in the Labour Code are met.
Collective Agreements Protected
The decision also has implications for unions and collective bargaining arrangements.
Benefits, obligations and rights created under existing collective instruments continue despite the change in operating company.
Impact on Future Concessions
The ruling provides greater certainty for future casino concession or licence processes in Chile.
Incoming operators will need to recognise that a change in the company controlling the property does not erase existing employment obligations connected with the business.
Next Steps or Impact
Ordinance No. 449 strengthens an interpretation designed to prevent operator changes from artificially interrupting employment relationships.
For workers, it preserves contracts, seniority and acquired rights.
For companies participating in casino concession processes, it means employment continuity must be considered from the outset when assessing the obligations attached to taking over an existing operation.
Editó: @fonta
