Distribution is he process and result of distributing (The action that consists of the distribution of something in different places or that implies its division into different pieces or fragments). The utility, meanwhile, is the gain or the benefit that can be obtained from something.
The concept of profit sharing It refers to the profit sharing who achieved a business or that produced a certain operation or activity. In several countries, profit sharing is an obligation for companies that meet certain legal criteria.
In this sense, profit sharing consists of a pay that the company performs with its employees according to the Profits obtained in the market. In other words: a certain percentage of these profits is shared between the workers.
The tax returns of companies determine whether or not they are obliged to share profits. The amount to be distributed, on the other hand, also arises from these statements, since it depends on the profits achieved and recognized by the firm.
In addition to all the above, analyzing the different regulations and international laws in this regard, these other data of interest about the distribution of profits are determined:
-The amount of money to be distributed can be divided in a different way, although the usual thing is to do it in two: one that will be distributed among the workers according to the days that they have performed their functions throughout the year and another that will be granted proportionally to income level.
-Employees who have worked a minimum of sixty days a year are those who have to be included in the distribution of profits.
-In Mexico it is established that both newly created companies and those with less capital than that set by the Ministry of Labor for that purpose or public institutions that are decentralized and carry out work are not obliged to undertake the aforementioned distribution. welfare, cultural or social.
-In the aforementioned country it is also determined that temporary workers who have been less than sixty days, domestic workers, partners and shareholders of companies and technical professionals who provide their services in the company in question but are not part of your staff.
-It is important that the workers’ representatives are up-to-date with the entity’s annual tax declaration, where they can discover if it obtained profits, and that they appropriately inform the employees so that they can know if there is to be a distribution of profits.
The distribution mode is associated with the salary of the worker and the number of days worked during the period in question. The company must present the workers with a copy of their tax return so that everyone can know what amounts are involved in the distribution of profits.
Then a commission formed by representatives of the company and workers to establish the participation of each employee in profits. In the event that no agreement is reached, the Condition, through certain labor authorities, must intervene to mediate.