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Scope of application

Guaranteed claims

The sums must be due in performance of the employment contract. In particular, AGS guarantees:

  • Remuneration and ancillary benefits (bonuses, gratuities, etc.)

    • Compensation resulting from the termination of employment contracts (notice period, compensation for paid

    • The sums must be due in performance of the employment contract. In particular, AGS guarantees:

    • Remuneration and ancillary benefits (bonuses, gratuities, etc.)

      • Compensation resulting from the termination of employment contracts (notice period, compensation for paid

      • Incentive and profit-sharing schemes

      • Ancillary support measures (job recognition costs, driving licence costs, removal and installation costs, etc.) resulting from employment protection plans (plans de sauvegarde de l’emploi – PSE)

      • Claims relating to the redundancy support agreement (contrat de sécurisation professionnelle – CSP) (employer’s contribution and cooling-off period)

        Article L.3253-6 and seq. of the French Labour Code 

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The principle of subsidiarity

  • AGS can only be asked to intervene according to the principle of subsidiary.

  • The judicial representative must first ensure that no other scheme (legal, contractual, insurance-based, etc.) enables the company to cover the debts owed to employees (e.g. paid leave guarantee fund, temporary workers’ fund, part-time employment financed by the State and Unédic, etc.).

  • Secondly, recourse to the guarantee is subject to verification that there are no or insufficient funds available in the company to cover the amount of unpaid wage claims.
  • The conditions for applying the subsidiarity criterion are reinforced in the case of safeguard proceedings.

     

Limits of the guarantee

The AGS guarantee is limited by law, which sets a general ceiling for all claims advanced combined (all forms of remuneration, redundancy payments, compensation in lieu of notice and paid leave, incentive and profit-sharing schemes, damages, etc.), determined based on the employee’s length of service on the day and in the year of the opening judgment.
 

COUNTRIES Ceiling Processing time Nature of guaranteed claims
France                       €94,200                   

1 to 5 days                                   

Remuneration of all kind, redundancy pay, compensation in lieu of notice and paid leave, incentive and profit-sharing schemes, damages, measures to accompany employment protection plans

Spain €33,882

3 months

Wages, redundancy pay, damages for unfair dismissal
Belgium €30,500

3 months

Wages and paid leave, transitional indemnity, closure indemnity and business complement
Germany €21,150

3 months

Wages
Italy €3,599

2 months

Wages, redundancy pay (excluding compensation in lieu of notice and paid leave)

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