Court rules worker who resigned after being mistakenly paid 330 times his salary can keep the money

A court in Chile has ruled that a worker who resigned after receiving a massive salary overpayment is not required to return the money, bringing an unusual payroll dispute to a close—at least for now.

The case involves a distribution assistant employed by Consorcio Industrial de Alimentos (CIAL), a food production and distribution company operating across Latin America. In May 2022, the worker was expecting his regular monthly salary of about 500,000 Chilean pesos (roughly ₦900,000). Instead, due to a payroll error, his bank account was credited with more than 165 million pesos, equivalent to about ₦300 million.

Reports from Chilean business newspaper *Diario Financiero* indicate that the employee initially informed the company of the mistake and expressed willingness to return the excess funds. Shortly afterwards, however, he stopped reporting to work and could not be reached by the company. Three days later, he formally resigned through his lawyer.

CIAL responded by filing a criminal complaint, accusing the former employee of theft and insisting that he had no legal right to keep the money. The company argued that once the worker became aware of the error, retaining the funds amounted to a criminal act.

During the legal proceedings, the defence maintained that no theft had occurred. According to the worker’s lawyers, the payment was made entirely in error by the company, without any action, manipulation, or deception by the employee. They argued that simply receiving money transferred by an employer does not, on its own, constitute a crime under Chilean law.

After nearly three years in court, a Santiago court ruled in September 2025 in favour of the worker. The judges held that the case did not meet the legal definition of theft. Instead, they classified the incident as “unauthorised appropriation,” an act that is not punishable under Chile’s criminal law.

In its judgment, the court noted that the payroll mistake was solely the company’s responsibility, there was no evidence of fraudulent intent by the employee, and there was no proof that he took steps to cause or influence the payment. As a result, the criminal charges were dismissed, allowing the former employee to keep the money.

Legal analysts say the ruling highlights the importance of clear legal definitions in employment and financial disputes. Had the court found the worker guilty of theft, he could have faced a prison sentence, a criminal record, and an order to repay the funds.

CIAL has said the matter may not be fully resolved. The company is considering civil legal action to recover the money and has indicated it may seek a review of the ruling through an appeal.