• Home >
  • Frequently asked questions

Frequently asked questions

You ask questions about the intervention of the AGS?
Begin by checking the answers to questions most frequently asked questions.

PRE-REQUIREMENTS FOR AGS INTERVENTION

Does the AGS intervene when the company is in difficulty, can no longer pay its employees and cannot dismiss because the staff have been with the company for a long time and the dismissal costs are too high?

The AGS may intervene to guarantee wage claims provided that the employer has already initiated protection, receivership or liquidation proceedings.

GUARANTEED CLAIMS

Does the AGS guarantee the wages unpaid prior to the declaration of the company’s liquidation?

Pursuant to the provisions of article L 3253-8 1° of the French Labour Code, the AGS guarantees the sums due to employees on the date of the initial judgment in the receivership or liquidation proceedings.
 
Article L 3253-8 2° stipulates that the AGS’s guarantee covers redundancy compensations, such as the compensation for paid holidays, when the termination occurs during the guarantee period.

DELAYS OF INTERVENTION

Under what conditions are the different claims paid (Notice, paid vacation, dismissal compensation)?

Pursuant to the provisions of article L 3253-15 of the French Labour Code, the AGS proceeds to the payment of guaranteed claims, within 5 days of receipt of requests for advances sent by the judicial representative.
 
It takes about 1 month between the date of the receivership judgement and the actual payment of the wage. 
 
Only the redundancy compensation is paid on the due date (after the notice period where it is worked or not.

LIMITS OF THE GUARANTEE

Is there a limit to the claims guaranteed by AGS?

The guaranteed claims are capped at a ceiling, adjusted each year (article L 3253-17 and D 3253-5 of the French Labour Code.

This ceiling changes according to the seniority of the employment contract on the day of the initial judgement for the judicial proceedings (receivership, liquidation, protection).

Ceiling 4 is applicable if the employment contract was signed less than six months before the initial judgment. The maximum amount is fixed at €54,032 for 2019.

Ceiling 5 is applicable if the employment contract was signed at least six months but less than two years before the initial judgment. The maximum amount is fixed at €67,540 for 2019.

Ceiling 6 is applicable if the employment contract was signed at least two years before the initial judgement. The maximum amount is set at €81,048 for 2019.

If the contract was terminated prior to the date of the initial judgment, the applicable maximum limit is set to reflect the period covered by the contract.

For wage claims stemming from receiverships initiated prior to 29 July 2003, the guarantee for claims outstanding for an employee is limited, for all the employees claims to:

13 times the monthly ceiling of the contributions of the unemployment insurance scheme when all the claims result from legislative, regulatory provisions or are granted by an agreement and occurred prior to the 29 July 2003 decree;

4 times that same monthly ceiling in all other cases, especially when the claims stem from receivership proceedings initiated prior to 29 July 2003.