Chilean Court Rules in Favour of Employee After Extraordinary Payroll Mistake
A Chilean distribution assistant has been permitted to retain a staggering £180,000 windfall after his employer accidentally paid him 330 times his normal salary in a remarkable payroll blunder. The Santiago court dismissed theft charges against the worker, concluding the case constituted unauthorised appropriation rather than criminal theft under Chilean law.
The Unfolding of an Extraordinary Financial Error
In May 2022, the employee of Consorcio Industrial de Alimentos (CIAL), a major Latin American processed foods group, discovered an astonishing deposit in his bank account. Instead of receiving his expected 500,000 Chilean pesos (approximately £440), he found 165,398,851 pesos – equivalent to around £180,000 – had been transferred by mistake.
Initially, the worker informed his employer about the error and promised to visit his bank to arrange repayment of the substantial overpayment. However, within days he became unreachable and failed to attend work. After 72 hours of absence, he submitted a formal resignation letter through his solicitor, effectively severing employment ties while retaining the unexpected fortune.
Three-Year Legal Battle Over Classification of Funds
The company responded swiftly by filing a criminal complaint for theft, arguing the employee had no legitimate claim to the mistakenly transferred funds. What followed was a protracted three-year legal dispute that reached the Santiago court system.
The worker's legal team maintained throughout proceedings that their client had committed no criminal offence. They emphasised that:
- The deposit occurred entirely due to company error
- The employee had not manipulated payment systems
- No deception, fraud or prior manoeuvring had taken place
- The transfer responsibility rested solely with the employer
Court's Groundbreaking Ruling on Unauthorised Appropriation
In September 2025, the Santiago court delivered its landmark decision, ruling in favour of the former employee. Judges determined the circumstances constituted unauthorised appropriation rather than theft – a crucial distinction under Chilean legislation.
The court's reasoning centred on several key factors:
- The payment error originated entirely from company systems without employee involvement
- No provable intention to appropriate funds could be established
- The worker had not forced or manipulated the payment mechanism
- Under Chilean law, unauthorised appropriation carries no criminal penalty
Had the court classified the incident as theft, the employee could have faced 540 days imprisonment, a permanent criminal record, and mandatory repayment of the full amount. Instead, the charges were dismissed entirely, allowing him to retain the life-changing sum.
Potential Civil Proceedings and Wider Implications
Despite the criminal case conclusion, the financial dispute may continue through alternative legal channels. CIAL has indicated it may pursue civil action to recover the substantial funds, with company representatives confirming plans to file an appeal for annulment to have the ruling reviewed.
Employment law experts highlight the importance of transparent communication when employees discover payroll errors. Spanish consultancy Legatik notes that under Spanish regulations, if employers fail to seek repayment within one year, employees are no longer legally obligated to return overpaid amounts – though Chilean law differs in this specific case.
This extraordinary case raises significant questions about financial responsibility, payroll system safeguards, and the legal distinctions between different types of financial appropriation. For now, the former CIAL employee remains free to utilise his unexpected fortune, while employers worldwide may reconsider their payment verification processes following this unprecedented ruling.
