An employee who has ceased to provide services before the end of the financial year concerned is responsible for receiving as legal satisfaction an amount proportional to the time served in accordance with Article 52 of the TC, in the maximum legal amounts, also proportional. Article 50 of the Labour Code stipulates that legal satisfaction is a bonus with a maximum limit of 4.75 monthly minimum income (IMM). In other words, whether or not the calculation takes precedence over the minimum income of more than 4.75 with the calculation at the end of the previous year, the satisfaction period to be cancelled is calculated with a limit of 4.75. If the calculation is lower, it corresponds to 25% of the calculation. It is very important to remember that legal satisfaction is subject to a condition precedent that states that satisfaction can only be provided if the company makes a profit. According to Chapter 5 of the Labour Code, legal satisfaction works if neither party has previously agreed on a type of tip, and in this case the amount is less than the amount to be paid in the gratuity. 2) Unsecured conventional gratuity: This is the one in which it is agreed that only contractually stipulated tips will be paid if the company makes liquid profits in the relevant financial year. Since the limit is 4.75, it will be checked if the amount received is in the legal amount, with the minimum wage for January 2022 for workers aged 18 to 65 being $350,000. For this, 350,000 US dollars * 4.75 are multiplied, thus receiving 1,662,500 US dollars, which represents the annual amount of satisfaction. How legal tips are calculated is independent in each company.
In this sense, the company will decide on one or the other methodology according to the working agreement it has with its employees, the income that the company receives, among other things, always taking into account the legal provisions. The Internal Revenue Service expressed itself in its office No. 1757 of 04.10.2010 with the words: “Taxpayers of Article 42 No. 2 of the LIR may choose to declare their actual income, in which case they are not required, in accordance with the provisions of Article 68 of the same legal text, to keep complete accounts, but only a book of notes and expenses in which an annual summary of notes and expenses is made. The next step is to multiply the annual salary of each employee by the factor received in the previous department in order to obtain the amount that corresponds to the legal satisfaction of the employee. This is the one provided for in individual or collective employment contracts. This document specifies the method of payment, the amount and all other conditions related to satisfaction. For example, corporations and foundations that operate subsidized educational institutions and individuals are not required to pay legal fees because they are not profit-making. These are tips that are reflected in employee compensation and are based on the profits made by the employer in the current fiscal year.
In order for legal satisfaction to be enforceable, compliance with the requirements set out below is required: it should be noted that if the salary increases, legal satisfaction also caps In order to proceed with the issuance of legal satisfaction, the following requirements must be met: It is also important to note that this obligation is annual, so the monthly payment of these tips is not mandatory. If they are paid annually, this must be done no later than April after the end of the fiscal year. As mentioned above, businesses are required by law to pay tips if they meet the three requirements above. But what about the new tax regimes and simplified accounting? The obligation to resolve differences in compensation of employees resulting from the adjustment of the minimum monthly income applies in the event that the employer has decided to pay the legal tips of its employees in accordance with the calculation method specified in article 50 of the Labour Code. This was indicated by the Directorate of Labour in its opinion No. 3071/30 of 13.11.2020, No. 1682/18 of 10.04.2012 and No. 5401/370 of 26.12.2000, which establishes the resettlement procedure. To calculate legal satisfaction, we first leave you the description of the concept and its requirements to understand the process. `In accordance with the provisions of Article 56(1) of D.L.
No. 2 200 of 1978 must be deducted by 10% of the profit determined by the Internal Revenue Service, 10% for interest on the employer`s equity. It follows from such a provision that interest is a direct function of the undertaking`s capital and must therefore be calculated on the basis of that own capital.
