Employment

Transfers

What is the legal framework for individual transfers? What restrictions can be placed on individuals moving between clubs?

The following statutory regulations only apply to professional football clubs. The first employment agreement term of an individual must range between one season and five years. Each renewal may be agreed for at least one season.

Training compensation shall be paid to a player’s training club or clubs when a player signs his or her first employment agreement as a professional.

Performance incentives must be paid within 90 days of the termination of the season where the incentive was accomplished.

Transfer may imply termination of employment. If it does, the individual must obtain compensation in lieu of the agreed term. If not, the assignor club has subsidiary liability if the assignee club fails to pay employment compensation.

Clubs are required to inform the Chilean football supervisory authority of the up-to-date employment and social security compliance status. Failure to do so authorises the individuals to request from the authority the withholding of any amount due to the club, whether it is paid to the individuals or otherwise.

Disciplinary action cannot be taken in situations that are not related to employment.

Disciplinary action cannot include vacation or time off reduction, or training exclusion.

Ending contractual obligations

Can individuals buy their way out of their contractual obligations to professional sports clubs?

In professional football, yes. However, it is not customary.

Welfare obligations

What are the key athlete welfare obligations for employers?

In professional football, no special obligations apply. Duty of care and protection of health and safety obligations apply.

Young athletes

Are there restrictions on the employment and transfer of young athletes?

Not at a local level; however, in professional football FIFA’s international restrictions are applicable in relation to the transfer of young football players.

What are the key child protection rules and safeguarding considerations?

For professional football, they are the same as those set forth in FIFA’s regulations.

Club and country representation

What employment relationship issues arise when athletes represent both club and country?

Professional football clubs are required to accept calls made by the national football team. The player, however, is not obliged to assist or concur with the call made by the national football team. If a football player is injured while representing the national football team, the costs, rehabilitation and remuneration of the football player will be funded by the insurance that the ANFP keeps for all the football players that represent the national football team. Finally, if the national football team is representing the country in international tournaments, such as the World Cup or the South American Cup, the international entity (FIFA or CONMEBOL) pays each club a determined amount for each player joining the national football team.

Selection and eligibility

How are selection and eligibility disputes dealt with by national bodies?

With regard to professional football, national employment courts have jurisdiction to resolve disputes in spite of any provision to the contrary. Employment matters have a public policy nature.

What are the key taxation issues for foreign athletes competing in your jurisdiction to be aware of?

Foreign athletes are subject to a withholding tax, with a tax rate of 20 per cent on services rendered in Chile. Athletes are deemed foreign if they do not have domicile or residence in Chile. That being the case, regular taxation is applicable; foreign athletes will be subject to a progressive tax with a tax rate of up to 35 per cent on the Chilean income.

Constituting domicile or residence will depend on many factors, such as the time spent in Chile and whether family members are living in the country.

Finally, it is important to take into account that during the first three years of domicile or residence in Chile, foreign athletes are subject to taxation exclusively on Chilean source income. Once this time has elapsed, taxation will be applicable on their worldwide income.