CUT Raises Alarm Over Supreme Court Ruling on Public Sector Contracts: «Conditions Created to Diminish the State»

The Supreme Court's ruling established that contracts in the public sector are "incompatible with any claim to stability," meaning they do not guarantee job security or convert temporary contracts into permanent appointments. Furthermore, regarding the principle of "legitimate expectation," the Court rejected its judicial application, citing that it "lacks normative endorsement" within the nation's legal framework.

The Citizen

23/10/2025 5:52pm

Original article: CUT ve «con alarma» fallo de la Suprema sobre contratas en el sector público: «Se generan las condiciones para reducir el Estado»

The CUT expressed concern regarding the recent ruling by the Supreme Court, which determined that contracts in the public sector are «incompatible with any claim to stability,» a shift deemed «significant» by El Mercurio as it «deals a blow» to the principle of «legitimate expectation» that previously allowed for the continued employment of public workers.

Specifically, the Third Chamber of the Supreme Court (case role N° 28.295-2025) upheld a ruling from the Talca Court of Appeals, which denied a protection request filed against the Municipality of Curicó by a contracted employee challenging a notice of non-renewal following their contract’s expiration.

This case prompted the Supreme Court’s ruling, which the CUT believes signifies a setback for labor rights and exacerbates the precariousness of public employment, impacting thousands of workers who, despite performing permanent duties, lack job security.

Silvia Silva, Vice President of Management and Finance at the CUT and President of Ajunji, stated to El Ciudadano, «From the CUT, we view this ruling with alarm, as it not only undermines the rights and guarantees of workers but also affects the citizenry itself. The troubling aspect is that it creates conditions for reducing the State, weakening citizen rights,» she emphasized.

The leader argued that «the CUT cannot accept a ruling of this magnitude that directly attacks public employment, and we urgently call on the Government and Parliament to expedite a profound reform of the public employment system that ends precariousness and establishes mechanisms to guarantee continuity and job stability for those performing permanent functions.»

«There can be no modernization of the State while forms of hiring that violate basic rights persist. It is unacceptable that the State maintains a workforce with 22.1% permanent positions, 55.6% contracts, 5.6% honoraria, and others at 16.7%. These unstable employment relations reproduce inequalities that deny the principle of decent work and internationally ratified conventions,» asserted Silvia Silva.

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