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Chile Court Tosses Theft Case Over 330x Payroll Error

The ruling classified the overpayment as unauthorised collection, blocking criminal prosecution.

Overview

  • In May 2022, an assistant received 165 million Chilean pesos—about 330 times his 500,000‑peso monthly wage—due to a payroll error.
  • After the company requested repayment, he resigned three days later without returning the funds, prompting a three‑year case.
  • In September, Santiago judges dismissed the theft charge by deeming the incident an “unauthorised collection,” removing the basis for criminal prosecution and potential jail time.
  • Consorcio Industrial de Alimentos de Chile says it will seek annulment of the ruling and pursue other legal avenues to recover the money.
  • The dispute now moves to appeals and possible civil recovery, with coverage also pointing to wider payroll control failures highlighted by comparable cases.