Amparo actions are foreseen due to cap on profit sharing

Note published on May 4 in El Economista, in the Empresas [Companies] Section by María del Pilar Martínez.

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Companies must cover the payment of Employee Participation in Company Profits (PTU) this month, in the midst of tension in some sectors of the economy, such as mining, in which the income from this concept was capped as a consequence of the reform on subcontracting of two years ago.

Union leaders and workers agree that, while the reform sought to regulate subcontracting in the country, “it affected us and, for the second year in a row, it takes profits away from us despite the fact that these profits were generated, since they included a criterion that caps the payment of profits; therefore, we have already started the process of filing amparo actions so that the payment of the full amount is complied with”, said Carlos Pavón Campos, secretary general of the “Frente” Mining Union.

Likewise, Oscar de la Vega, founding partner of De la Vega y Martínez Rojas, said that this year the financial sector has made “interesting profits” that it must share with the workers given that, with the reorganization of operations that they made due to the reform on subcontracting, they assumed the entirety of the employment relationship, which carried several consequences, the payment of the PTU among them.

“The complicated thing is that today workers do not want the caps that were set at three months of salary, or the average of the last three years given that, according to the PTU commission 10% of the obtained taxable income must be granted but, while no pronouncement is made in this regard, companies may use the cap.” For his part Alejandro Salafranca, director of the Unit for Dignity in Labor of the Department of Labor, said that there will be operations focused on PTU after the payment due dates.

“During the summer, data is cross checked with the SAT [Tax Administration Service], and we see the cover pages of who paid and who didn’t, so as not to conduct random inspections, but to reach those that did not comply with their obligation directly and maximizing inspections”, Salafranca explained to El Economista.

In regard to the conflicts that could arise, Salafranca stated that “the law was not reformed to save on PTU” and he added that a 10% profit sharing will be maintained for 8 more years.