On June 05, 2014, entered into force the Regulation of the articles 121 and 122 of the Federal Labor Law, published in the Official Gazette of the Federation (?DOF?) regarding to the Chapter VIII ?Participation of the Workers in the Profits of Business? which establishes the possibility to raise objections to the Annual Declaration presented by the employer to the Secretary of Finance and Public Credit. This Regulation contains the guidelines and requirements to follow, which will be explained in the following Newsletter
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Purpose
This Regulation has the objective to regulate the procedure related to the objections raised by the workers to the Annual Declaration presented by the employer to the Secretary of Finance and Public Credit.
�Who has the possibility to raise objections?
The Union that holds the collective agreement, the Contract Law party or the majority of workers of the business have the right to raise objections regarding the Annual Declaration.
Likewise, these parties have the following rights:
-To receive a copy of the Annual Declaration presented by the employer to the Secretary of Finance and Public Credit.
-To review the Declaration attachments.
-To raise objections regarding to the Annual Declaration.
In order to accredit legal capacity from the majority of the workers, the Labor Authority shall make extraordinary inspections in order to verify the number of workers of the work place.
The workers shall have 30 days to raise their objections regarding to the Annual Declaration to the Secretary of Finance and Public Credit.
�When shall the distribution of profits be performed?
The distribution of profits shall be performed within the 60 natural days following the date that the annual taxes are paid, that is, the 31st of May of each year.
It is necessary to emphasize, that the claim for the distribution of profits does not extinguish by lapse of time, as the profits shall accumulate to the following year.
Liabilities of the Employers
The employer must deliver a copy of the Annual Declaration to the Union that holds the collective agreement or to the majority of workers in order to inform the financial situation that the employer holds.
Intersecretary Commission
The Regulation establishes the creation of the Intersecretary Commission for the Distribution of Profits among the Workers, which will have the following functions:
-To attend the workers claims.
-To establish the coordination measures among the labor and tax authorities.
-To approve the programs and activities of the Commision.
