Extranet
Your situation
Is your company established in a Member State of the European Union or the European Economic Area (EEA) and do you employ one or more employees whose normal work is based in France?
Countries concerned
The 27 Member States of the European Union as of 1 January 2025 are Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden, while the European Economic Area comprises the same countries plus Iceland, Liechtenstein and Norway.
As of 1 January 2021, the United Kingdom is no longer a member of the European Union and the EEA.
Benefit from the wage guarantee scheme
If insolvency proceedings are opened in your country of origin, even if no insolvency proceedings have been opened in France, your employees in France can benefit from the wage guarantee scheme (AGS), subject to certain conditions.
Our company has an international presence
What are the conditions?
1. The employee usually works or worked in France
2. Your enterprise is a foreign company based in the EU or EEA.
3. Insolvency proceedings have been duly opened
- In your country of origin
- In accordance with local law.
Why?
Because even if your enterprise is based abroad, the fact that all or part of your activity is carried out in France justifies the application of French law and therefore the intervention of AGS to guarantee the payment of wage claims (
Article L.3253-18-1 of the French Labour Code).
What should you do if you are affected?
AGS supports you
- Immediately contact the representative of the foreign insolvency proceedings appointed at the opening of the insolvency proceedings, who alone is authorised to refer any request for intervention to AGS.
- If the proceedings are closed, the employee may submit their claim directly to AGS on the basis of Article L.3253-18-8.
- Feel free to consult the “Intervention of AGS in foreign insolvency proceedings” page in the Experts & Partners section to find out how to proceed.
