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Advance payments

Effective application of the AGS guarantee is subject to the instigation of protection proceedings, receivership proceedings or legal settlement and the absence of the employer’s available funds to pay employees the claims resulting from the employment contract.

The key entitlements granted by the law

  • Remuneration of all kinds due to employees and apprentices ;
  • Compensation payable as a result of contract of employment termination ;
  • Profit-sharing and employee bonus schemes, where the sums due are payable ;
  • The provisions of welfare schemes where these are granted by law or under agreements.

The advance request process

When proceedings for protection, receivership or liquidation are commenced, the debtor’s creditors must declare their claims. Employees are exempted from this procedure. The judicial representative appointed at the outset of the receivership process checks employees’claims and lists the amounts due in a statement of claims, which is then forwarded to the official receiver for approval.
Where the company does not have the funds required, the judicial representative requests engagement of the wage guarantee scheme by submitting the statements previously prepared and forwarded to the AGS Management and Study Center (CGEA). It is then the responsibility of the judicial representative to pay these sums immediately to the employees concerned.
If the judicial representative has completed his/her involvement, the clerk of the court or the court officer responsible submits an additional report to the CGEA, and acts as intermediary for the employees concerned.

The maximum limits of the AGS guarantee

Articles L. 3253-17 and D. 3253-5 of the French Employment Code establish the principle of a maximum limit on the sums advanced by the AGS.
Where a 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.
In 2018, the maximum limit of the AGS guarantee, including all sums claimed, is 79,464 euros.