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Santiago Court Rules Payroll Windfall Was Not Theft

The ruling classifies the 2022 overpayment as an unauthorised collection, shifting the dispute to non-criminal avenues for recovery.

Overview

  • An assistant at Dan Consorcio Industrial de Alimentos de Chile was mistakenly paid £127,000 in May 2022, roughly 300 times his usual £386 monthly wage.
  • The company accused the worker of theft after he reportedly promised to return the funds and resigned three days later.
  • The judge held the incident was an unauthorised collection, which blocks criminal prosecution.
  • The employee keeps the money for now as the employer says it will seek annulment of the judgment and pursue all legal options to recover the funds.
  • The case underscores payroll control failures and the legal distinction in Chile between theft and unauthorised collection.