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Since its creation, AGS (Association pour la Gestion du Régime de Garantie des Créances Salariales) has played a key role in supporting companies in difficulty and their employees during insolvency proceedings. AGS fulfils a mission of general interest by paying wages and severance pay, in the form of advances of wage claims, when the employer is unable to honour these payments.
As a key player in the business failure ecosystem, AGS continues to evolve to meet the needs of employees and businesses in difficulty.
Who we are
Our history
Creation of the AGS
The AGS was created in early 1974, following the law of 27 December 1973.
It was founded by three employers’ organisations:
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the CNPF (now MEDEF)
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the CGPME
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the CNMMCA
Context of creation
The bankruptcy of LIP revealed the lack of protection for employees in the event of their employer’s failure.
This event triggered awareness and led to the creation of the AGS scheme.
An employers’ initiative
François Ceyrac, President of the CNPF in 1973, played a decisive role.
He proposed the establishment of a scheme dedicated to protecting employees in the event of company bankruptcies.
Operational management
From the outset, the AGS entrusted the operational management of the scheme to Unédic, under a management mandate that is still in force.
Expansion of the scheme
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1985: addition of termination indemnities and extension to overseas departments (DOM)
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1987: financing of training related to economic redundancies
Current organisation
Since 1996, technical and financial management has been ensured by the AGS Delegation.
In 2024, teams were transferred to the AGS, which now directly manages the operational aspects of the scheme.
Today, the AGS comprises:
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1 national headquarters in Paris
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15 centres across the overseas territories (DROM
L’AGS, 50 ans de solidarité et d’engagement
Une histoire au service des salariés et des entreprises
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Financing of AGS
Employer contributions
These contributions are paid to AGS via URSSAF and calculated on the company’s payroll, up to a ceiling. Since 1 January 2025, the rate has been 0.25%, payable solely by the employer. The calculation basis matches that of unemployment insurance and is capped at four times the Social Security ceiling
Recoveries
The second source of funding comes from recoveries when a company regains the ability to repay its debts. It must then reimburse the cash advance provided by AGS. When a company is liquidated, the sale of assets also enables AGS to recover funds, as it holds super-preferential creditor status.
Principle of subsidiarity
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Intervention of AGS
AGS intervenes according to a principle known as subsidiarity, which means that AGS can only intervene to guarantee wages after verifying whether or not the company has the necessary funds to pay the wages owed to employees itself. The level of AGS cover depends on the company’s situation, i.e. the type of legal proceedings in progress (judicial safeguard, reorganisation or liquidation).
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In the case of safeguard proceedings
In the case of safeguard proceedings, AGS only guarantees severance pay for employees made redundant for economic reasons during the observation period or during the month following the adoption of the safeguard plan.
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In the event of judicial reorganisation or liquidation
In the event of judicial reorganisation or liquidation, AGS guarantees wages, bonuses and severance pay due on the date of the opening judgment. It also covers severance pay for employees whose employment contract is terminated after this date, provided that the termination is decided by the employer or the authorities in charge of the legal proceedings. If the insolvency proceedings are converted into liquidation proceedings, AGS will pay the wages due during the observation period, up to a limit of 45 days’ wages, in terms of both amount and duration.
Implementation of the guarantee
When insolvency proceedings are opened (judicial safeguard, reorganisation or liquidation), the commercial (or judicial) court appoints a judicial representative. This person is the employee’s main contact throughout the procedure. They are responsible for drawing up an inventory of the company’s employee claims within 30 days and other claims within three months, from the date on which the insolvency proceedings are opened.
If employee claims remain unpaid and the company no longer has the funds available to settle them, the judicial representative will apply to AGS for an advance of funds.
After analysing the situation, AGS will make the advance payments to the judicial representative, who will then pay the sums directly to the employees.
