Seguro de Cesantía and moving back to the US

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e-bum
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Seguro de Cesantía and moving back to the US

Post by e-bum » Thu Jun 06, 2013 4:21 pm

My quest to gather information my company should know, but doesn't, continues.

My question has to do with returning to the US in November, when my agreed-upon work period with my company expires (even though my contract is technically indefinido).

So my question is if I am eligible to cash in on the seguro de cesantía that is withheld from my liquidación every month at the end of my time here? Does anyone know the process involved with this? What kind of documentation must I provide to prove that I will be without work, since my contract doesn't necessarily state an end date?

Another question... what is the Chilean equivalent to a W-2 form? I'm trying to plan ahead for what to put next year when filing my taxes in the US. (planning ahead???!!! Dramatic concept here, I know.)


Thank you all.

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zer0nz
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Re: Seguro de Cesantía and moving back to the US

Post by zer0nz » Thu Jun 06, 2013 4:42 pm

from what i understand yes you get it back, same way as any unemployed person does, it takes 10 days to process.. no idea the process, google it

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snobrd4life
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Re: Seguro de Cesantía and moving back to the US

Post by snobrd4life » Thu Jun 06, 2013 4:49 pm

Try looking up AFC seguro de cesantia for better instructions. I'll share the experience that I have...

My wife just went through the process. You'll have to go to the AFC office to make the claim. They will ask for your finiquito and certificado de cotizaciones previsionales. They give out payments in installments so that you ideally wouldn't be milking the system for a one-time payout and then starting another job right after. You can claim a few monthly payments in any Servipag in person as long as you are still actually in Chile (which might be hard for you since you will be leaving promptly at the end of your contract).
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e-bum
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Re: Seguro de Cesantía and moving back to the US

Post by e-bum » Thu Jun 06, 2013 5:07 pm

It does look like this is covered pretty well here:
http://www.servicioweb.cl/seguro_cesantia.htm

However, I'm trying to understand this part, as it would apply to me:
Si su contrato de trabajo terminó por renuncia voluntaria o mutuo acuerdo, tiene derecho a obtener un pago de cesantía por cada 12 meses cotizados al seguro, con un máximo de 5 pagos. Las cuotas se financian sólo con los dineros de su cuenta individual. Pero para ello, debe estar cesante, acreditar que el contrato de trabajo que terminó era a plazo indefinido y tener 12 cotizaciones o más al seguro de cesantía, continuas o discontinuas.

If I understand correctly, you must have contributed at least 12 months of unemployment to be able to cash in on the total amount you contributed during those 12 months and this will be paid in 5 payments? Or is it that you can only cash up to 5 months-worth of the contributions, as long as you have been contributing at least 12 months?

Either way, I won't have been working for 12 months and I'm still on a contrato indefinido.... So where does that put me? It seems it may be in my best interest to have an amendment to my contract that turns it into a fixed-length contract, so that I can "retirar en un solo giro todo el dinero acumulado en su cuentan individual" as mentioned on the site for contratos a plazo fijo.

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snobrd4life
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Re: Seguro de Cesantía and moving back to the US

Post by snobrd4life » Thu Jun 06, 2013 5:29 pm

I'm assuming that the number of payments depends on the number of 12 month periods that you actively contributed to the fund since my wife was only eligible for 2. So I would say you are probably not going to get anything. Or I could be horribly wrong...
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e-bum
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Re: Seguro de Cesantía and moving back to the US

Post by e-bum » Thu Jun 06, 2013 5:33 pm

snobrd4life wrote:I'm assuming that the number of payments depends on the number of 12 month periods that you actively contributed to the fund since my wife was only eligible for 2. So I would say you are probably not going to get anything. Or I could be horribly wrong...
I am going to hope that you are. Although now that I re-read it, it does seem to mean exactly that.

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Re: Seguro de Cesantía and moving back to the US

Post by HybridAmbassador » Fri Jun 07, 2013 4:39 pm

Found additional info on "how to collect on cesantia. Initially on google then hit translate button and it gave me this below.

Posted on December 2, 2010 by TrabajoyMujer.cl Group .

Unemployment insurance can be a great relief and a way out of the hard times that each worker faces losing his job.
This support is essential especially for employees who do not have or do not have compensation savings to cope with a layoff.
The law (No. 20,328) is effective from May 1, 2009, and applies to employees dependent age 18 and governed by the Labour Code, contracted date on or after October 2, 2002 and with 12 months of contributions to insurance.
Another good news is that this insurance covers workers only in monetary terms, but it also has health benefits, family allowance and reemployment support through the operation of a National Employment Exchange and fellowship training.
Moreover, the unemployed are entitled to make as many turns as the balance of the member's account allows monthly and decreasing, allowing face unemployment.
On the contribution rates of unemployment insurance:
- When it is a fixed term contract, for work or task the entire cost of the insurance is paid by the employer, who must contribute monthly 3% of the employee's taxable income, with 97.1 UF cap. Of which 2.8% is accumulated in the individual account of the employee and the remaining 0.2% admitted to distributing fund, called "Unemployment Solidarity Fund".
- When it comes to a contract for an indefinite term, however, the worker must provide monthly pocket 0.6% of your taxable compensation with 97.1 UF cap, while his employer contributes 2.4% of the same amount. The contribution from the company, only 1.6% is payable on the worker's individual account, and the remaining 0.8% admitted to distributing fund, called "Unemployment Solidarity Fund".
It should be noted that the contribution of 1.6% is deductible by the employer of the compensation to which the worker is entitled to a permanent contract when it fired "by business necessity."
Here we detail the'll need to collect your unemployment insurance:
- Valid identity card
- The settlement stating the term of the contract. You must be signed by employer and employee, should indicate what caused the end of the employment relationship. It must also be ratified by the worker to the labor inspector, notary, registrar or clerk concerned.
- Letter or notice of dismissal signed by the employer or labor inspector certification evidencing the contract term.
Once the Fund Administrator (AFC) accept the application shall state the place of payment thereof.
The fee may be in cash or check, through Servipag agencies, branches or ServiEstado State Bank.
Who is not eligible for this insurance?
• Workers in private homes
• Workers under contract learning
• Workers under 18 years of age
• Workers have the quality of pensioners, except for partial disability pensioners
• Freelance workers
• Workers governed by any other rule than the Labour Code
Source: Unemployment Fund Administrator of Chile
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PXYC
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Re: Seguro de Cesantía and moving back to the US

Post by PXYC » Sun Feb 02, 2020 12:40 pm

So.. let's ressuscitate this topic.

I have accepted a new job offer here in Chile, starting in April, and just discovered that I can't collect the "seguro cesantía" I have on my current company if I am not "cessante", which means unemployed - as this topic explains, and yeah I stupidily had always misinterpreted the word "cessante".

Well, assuming that if I get unemployed and without other job prospects I would probably think returning to my homecountry, am I correct to assume that I will never cash in from this seguro cesantía?
And if that's the case, can I just opt out of this seguro cesantía on my new contract starting in April?

Jamers41
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Re: Seguro de Cesantía and moving back to the US

Post by Jamers41 » Sun Feb 02, 2020 4:26 pm

PXYC wrote:
Sun Feb 02, 2020 12:40 pm
So.. let's ressuscitate this topic.

I have accepted a new job offer here in Chile, starting in April, and just discovered that I can't collect the "seguro cesantía" I have on my current company if I am not "cessante", which means unemployed - as this topic explains, and yeah I stupidily had always misinterpreted the word "cessante".

Well, assuming that if I get unemployed and without other job prospects I would probably think returning to my homecountry, am I correct to assume that I will never cash in from this seguro cesantía?
And if that's the case, can I just opt out of this seguro cesantía on my new contract starting in April?
If you become unemployed, you should immediately go to an AFC office and show them the finiquito that proves that. The finiquito must cite the legal reason for terminating the contract. Then they will explain your options to you. By options, I mean that legal reason will determine whether you can only pull $$$ out of your individual account (the one that's in your name just like with AFP pension funds), or if you can access "solidarity" funds. In general, if the reason the contract (and job) ended has anything to do with the worker's will (voluntary resignation, or mutual agreement normally), then there's only a right to money in your own account. When you are "involuntarily" unemployed, such as getting let go for "business needs", force majeure, the business goes bankrupt, etc. then you can choose the "solidarity" fund option that gives you some money beyond whatever is in your personal account.

Now, in that situation, I would go and give them notice that I'm unemployed, and then make decisions about when to leave the country if I choose to do that. The AFC will tell you when the payments are scheduled to be available for you (make sure the account info provided is 100% correct to avoid delays), and they don't really have any reason to know about you planning to leave Chile, and I wouldn't tell them that (they probably wouldn't care either way). Unemployment "benefits", if we call them that, are pretty front loaded here, so let's say there's enough $$$ in your individual account to cover 4 monthly payments, the first payment they make to you will be the largest, and then they get progressively smaller, in order to provide an incentive for the unemployed person to search for a new job. So if you leave after getting a payment or two, you will have pulled the majority of the funds from the account. From my experience, usually when you show the AFC that you're unemployed, the first payment they make to you takes a bit over a month, but I think it depends on the exact date of the month they receive and process your request.

I'm not sure what you mean about being not "cesante", if you are currently employed, then yeah they won't let you touch the money. Normally at a new job (such as what you say you'll have in April) they might ask to see your previous finiquito showing that you're not employed on a contract for anybody else, so you should have that ready in April regardless of exactly how (or for what official reason) you leave or left the previous job.

Someone here can correct me, but I have never heard of being able to legally opt out of the obligation to pay into the cesantía funds while working.

I hope this helps!

PXYC
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Re: Seguro de Cesantía and moving back to the US

Post by PXYC » Sun Feb 02, 2020 9:30 pm

Thanks Jamers41 🙌

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