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Balance is ensured by the permanent adequacy between the level of advance payments, recoveries and contributions.

A guarantee based on making advances for subsequent repayment

The principle of reimbursement is contained in Article L -3253-16 of the French Labour Code. Having made advances against the claims of employees, AGS becomes a claimant of the defaulting company.
The methods used to recover paid claims from the company differ, depending on their priority and the stage reached in the receivership process.
The wage guarantee scheme is, however, a special claimant, since it benefits from the same legal privileges as those granted to employees. The wage guarantee scheme is therefore legally substituted for the privileged claims of employees.

The types of claim against which the AGS may advance payments

Special privilege claims – article L.3253-16-2° of the French Labour Code. These claims are legally substituted for the rights of employees and must be paid as a priority.

Claims under article L. 622-17 of the French Commercial Code and post-protection plan claims in case of protection proceedings
Claims due for redundancy payment following dismissals for economic reasons announced during the protection proceedings or within one month after the termination of the protection plan.

Claims due under article L. 622-17 and L. 641-13 of the French Commercial Code
Amounts due during the observation period in the context of receivership, and wages up to a maximum limit of one and a half months of employment where there has been conversion to a judicial liquidation.
The wage guarantee scheme has a prior claim for payment. These claims must be reimbursed
before other claims after the prior reimbursements of special privilege claims.

Privileged claims – articles 2331-4° and 2375-2° of the Civil Code. Claims guaranteed by means of a general claim on the fixed and moveable assets of the individual or legal entity are paid either in accordance with the plan or, in the case of judicial liquidation, in accordance with the ranking of privileged claims in respect of the asset sold.

Unsecured claims
Claims which are not covered by any particular guarantee and are paid either in accordance with the plan or, in the case of judicial liquidation, after the privileged claims.