Priego Brito & Guzmán Juárez Attorneys at Law

Profit sharing!

The concept of profit sharing between workers and employers is depicted, incorporating elements of fairness and labor rights.

Dear friends, with the purpose of asserting and specifying the right that each worker, collaborator, operator has to make his request for payment of his profit sharing, it should be taken into account that, although it is a labor right earned by the sector, and which the employer has the obligation to pay it, it is also true that like any legal process in this labor case, the following comments should be made for the purpose of first informing you how it is or what corresponds to said benefit and what is taken into consideration to make said payment, as well as the consequences and procedures to follow in case of not making said payment; The following comments should be made for the purpose of first informing you how this benefit corresponds and what is taken into consideration to make such payment, as well as the consequences and procedures to follow to obtain it in case of not making it. The comments will always be aimed at the transparency of the process and in which all parties involved in this case know their rights and obligations, since the duty of us as legal professionals is always to advise and mention the judicial and non-judicial procedural realities, which in each right and obligation they have.

Once mentioned the above dear readers, it is made known that the payment of the aforementioned benefit must be in accordance with the provisions of articles 117, 118, 119, 120, 122, 123, 124 and 125 and its other relative and applicable articles of the reformed Federal Labor Law multiple times, of course in recent years, of the above you will say yes but what do these articles say (number numbers how much I get); With patience we dawn, since it should be made known first that such payment will obey as follows. Article 123 reads as follows: “The distributable profit shall be divided into two equal parts; the first part shall be distributed equally to all workers, taking into consideration the number of days worked by each one in the year, regardless of the amount of wages. The second shall be distributed in proportion to the amount of wages earned for the work rendered during the year...”

The above is the obligation that each worker must have in the service of the company or source of work is a minimum requirement of days worked for the company, to be entitled to such payment, which added to the participation of each worker must have a correct integration of work commissions between the same number of workers with respect to the employers, in the same way, the sources of work are exempt from payment of this benefit, as long as they are newly created, that is to say, in the year that is paid or that corresponds to be paid, as long as the source of work has not been in service for one year, this is to cite only the first fraction of article 126 of the aforementioned labor law, since this article is aimed at making each sector involved in this benefit know that it is a labor administrative process that must be carried out so as not to fall into sanctions or omissions, given that they are acquired constitutional rights and that the benefit of “profit sharing” must be understood as a reciprocity that the “PATRONAL” sector makes to the workers of the profits obtained in the fiscal year that has passed, the important thing about this benefit is that both parties are aware that in order to reach this annual achievement, one depends on the other, since without the worker and the employer, this benefit would not exist, given that the figures mentioned here are the basis for the social law known as “LABOR LAW”..

From the above, it must always be taken into account that the capital sector (employer) must justify the reasons for non-payment of this benefit in accordance with the exceptions of the law of the matter, and otherwise, of course, there will be a penalty that will always be economic. Regardless of this, the social sector must never be affected, whether it is the worker or the capital, since the authorities must always maintain a balance for the improvement and continuity of the source of work and the labor sector, both of which are part of the economic life of the country.

So much for this week's comments, we'll see you next week...

MD. Alberto Iduarte Aguilar - Director of the Labor Area

Article written by:

MD. Alberto Iduarte Aguilar
Director of the labor area

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