R uling against the cap on the amount payable as PTU

It was recently reported that Mexican mining union “Sindicato Nacional Minero Metalúrgico Frente” (the “Union”), obtained a favorable ruling in a constitutional (“amparo”) procedure against the cap on the amount payable as Employees’ Profit Sharing (“PTU”, as per its acronym in Spanish). Pursuant to such resolution, the PTU cap (which is equal to the greater of: (i) three months of the employee’s salary; or (ii) the average PTU received during the last three years, the “PTU Cap”), would not apply.

The Political Constitution of the United Mexican States provides that employees will receive as PTU an amount equivalent to the percentage determined by the National Commission for PTU, which currently is 10% of each company’s taxable income. However, the PTU Cap was introduced as part of the reform to the Mexican Federal Labor Law published in the Federal Official Gazette on April 23, 2021. The Union argued that the PTU Cap violates the constitutional provision.It is important to highlight that the resolution issued in favor of the Union:

  • Is not yet final and remains subject to appeal; and
  • If deemed final in due course, for now it could only be applied in favor of those plaintiffs who followed the corresponding constitutional (“amparo”) procedure, and not in favor of employees and/or unions of other companies.

For more information, please feel free to contact Francisco Peniche Beguerisse and/or Julio Álvarez Ortega at:

Tel: (52-55) 4748-0670