Payment of profits to workers
On March 24th, the payment of profits to workers began as recognition of their contributions to the annual results and net earnings of companies. This extra and mandatory money is executed once a year and also includes former employees of a company. But, until when is there a deadline to claim this benefit? We'll tell you the details in this note.
First you should know that not all companies deposit profits. Companies that generate third category income and have more than 20 employees are obligated to do so, as long as they have reported earnings after declaring their income tax.
Which companies do not deliver profits?
- Micro companies accredited in the National Register of Micro and Small Enterprises.
- Institutions of the public sector.
- Non-profit organizations.
- Cooperatives, community organizations, and civil societies.
- Private companies that had 20 or fewer employees in 2022.
Until when can I collect my profits?
According to Aymé Limaco, head of the labor area at Cuatrecasas, this payment can be made up to four years after the employment relationship has ended. To do this, former employees must explicitly request it from their previous employers.
Which workers can receive this benefit?
To enjoy this right, it is sufficient for the employee to have worked effectively for one day, and the beneficiaries can be indefinitely, fixed-term, or part-time employees, even if they work remotely, and it is mandatory for them to be on the payroll.
If I am a former employee, do I get paid profits?
According to lawyer Limaco, if you are a former employee and resigned before the date on which the profits are distributed, you are entitled to receive the amount that corresponds to you. However, there is a deadline to collect the bonus.
What happens if I don't claim my profits?
If you don't do it in the next four years, that payment expires and that money is added to the company's profits to be distributed among the other workers.