This scenario confirms a trend that organizations should not lose sight of, as proper preparation for a dismissal process begins long before the dismissal letter is delivered.
A recent study conducted by the Judicial Observatory analyzed more than 43,500 labor court rulings issued between 2015 and 2025 regarding claims of unjustified termination, confirming a reality that companies have been facing for several years: labor courts maintain a high standard for validating the legality of terminations, particularly when they are challenged by employees.
The figures are clear: 7 out of 10 claims for wrongful termination are upheld when the case reaches a judgment, while 57% of cases are resolved through conciliation or settlement, reflecting that, in many cases, the parties choose to reach an agreement before a judicial decision is issued.
One of the most relevant trends for companies relates to the grounds of “business necessity,” historically one of the most commonly used reasons for terminating an employment relationship.
According to the report, 83.4% of lawsuits challenging this ground are upheld by the courts.
Meanwhile, regarding disciplinary dismissals, the study also highlights a scenario that companies should take into account.
Although lawsuits based on disciplinary grounds have a lower success rate than those based on objective grounds, the report concludes that there is greater variability in the courts’ criteria when assessing the conduct attributed to the employee.
The analysis also shows that these differences do not depend solely on the grounds invoked; rather, there are significant variations between courts and even among judges, especially regarding disciplinary grounds, where the evaluation of the evidence plays a decisive role.
This scenario confirms a trend that organizations should not lose sight of, as proper preparation for a termination process begins long before the termination letter is delivered. This reinforces the importance of thoroughly preparing the decision, ensuring there is sufficient evidence to support the grounds invoked and that the letter clearly, precisely, and consistently reflects the facts underlying it.
These are decisive factors for companies to minimize risks and better handle a potential labor lawsuit.
For more information on these issues, please contact our Labor Group:
Jorge Arredondo | Partner | jarredondo@az.cl
Jocelyn Aros | Director Labor Group | jaros@az.cl
Felipe Neira | Senior Associate | fneira@az.cl
Palmira Valdivia | Associate | pvaldivia@az.cl
Manuel Sepúlveda | Associate | msepulveda@az.cl
Catalina Díaz | Associate | cdiazp@az.cl
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