International Business Articles
Written By: Adrián Salgado
Cacheaux Cavazos & Newton
Recently, the Second Chamber of the Supreme Court of Justice of the Nation (SCJN) resolved a contradiction by legal opinion resulting in legal opinion number 2a./J. 112/2013 (10a.) titled: Employee profit sharing. The amount set forth in Article 127, section III of the Federal Labor Law is only applicable to employers exclusively dedicated to activities indicated in such regulation." In this ruling, the Second Chamber of the SCJN held that the legislative intent upon creating such concept was that the maximum amount of one month's salary for employee profit sharing applies only to employers that obtain their income from the administration of assets and properties that generate rent, debt collection and interest, as long as such activities constitute the employer's sole source of income. Given the foregoing, for employers that carry out other types of business and/or activities in addition to those previously mentioned and such activities serve as a source of income, the general rule as to the one-month's salary as a maximum profit sharing payment amount does not apply. This ruling is pending publication in the Weekly Federal Court Reporter.