Note published on March 22 in El Pulso Laboral, Mundo Laboral y RR.HH. [Labor World and HR] Section by Arturo Rivero.
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The decision that the amount of profit sharing have an upper limit of three months of the worker’s salary, or the average of profit sharing received in the last three years does not solve the structural problem represented by the high percentage set for profit sharing, warns D&M De la Vega & Martínez Rojas, a labor law Firm.
It declares that small and medium companies cannot pay profits on the basis of three months of salary forced on them by the percentage of 10 percent which, in turn, is anti-competitive for large companies.
“A situation that has given rise, in great part, to personnel subcontracting, a practice that, being prohibited according to the reform bill proposed by the Executive Power, will further worsen the already severe economic crisis that the country is going through and, thus, unemployment”, states the labor lawyers’ Firm.
What should be solved, it says, is the underlying problem, calling the National Commission again in order to revise the percentage of participation in terms of Article 123 of the Constitution, in its Section IX, paragraphs b and c, which establishes:
“The Commission will conduct the necessary and appropriate studies to acquire knowledge of the general conditions of the national economy. It will also take into consideration the need to promote the national development of the Country, the reasonable interest that capital should receive and the necessary reinvestment of capital.”
“The same Commission may review the defined percentage when there are studies and research that justify this.”
Additionally, the labor lawyers’ Firm states that the National Commission must set the percentage in accordance with the provisions of Article 118 of the Federal Labor Law.
“In order to determine the percentage that the previous article refers to, the National Commission will conduct research and perform the necessary and appropriate studies to acquire knowledge of the general conditions of the national economy and will take into consideration the need to promote the industrial development of the country, the right of capital to obtain a reasonable interest and the necessary reinvestment of capital.”
