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Factsheet for measure FR-1974-5/2612 – measures in France

Wage guarantee fund

Association pour la gestion du régime de garantie des créances des salariés (AGS)

Country France , applies nationwide
Time period Open ended, started on 01 February 1974
Context COVID-19, Restructuring Support Instruments
Type Legislations or other statutory regulations
Category Income protection beyond short-time work
– Income support for unemployed
Author Frédéric Turlan (IRshare) and Eurofound
Measure added 23 June 2022 (updated 23 November 2022)

Background information

The AGS's main mission is to accompany and support companies in insolvency proceedings by advancing the funds needed to pay employee claims.

Wage guarantees are offered in the case that an employer is bankrupt (debt cannot be covered by assets), reorganises the company, or is in temporary financial difficulties.

All employees are eligible irrespective of the duration of the employment contract including part-time and fixed-term workers, workers that temporarily work outside of France as well as foreign workers working in France for an employer located in another European Union Member State.

Content of measure

Founded in 1973, wage guarantees cover everything that is owed to the worker on the day of filling for insolvency, including wages, compensations in case of termination of the employment contract, claims from financial employee participation and social plans.

There is a maximum amount per employee which takes into account the following considerations:

  • If the contract has been concluded less than six months before the opening judgement for insolvency, the maximum is set at €54,848 for 2021.
  • If the contract has been concluded between six months and two years before the opening judgement for insolvency, the maximum is set at €68,560 for 2021.
  • If the contract has been concluded more than two years before the opening judgement for insolvency, the maximum is set at €82,272 for 2021.

There is no minimum duration of the employment relationship.

The system is financed by contributions from all employers (0.15% of the payroll, since 1 July 2017). Due to the COVID-crisis, the AGS has taken exceptional measures, applicable retroactively from 16 March 2020. From 16 March 2020, the AGS pays the amounts owed to employees within a period of 72 hours following receipt of the statement of wage claims. .

Use of measure

The year 2021 is characterised by a historic drop in all technical indicators for the AGS: 11,000 files opened (compared to 13,492 in 2020), an amount of advances not exceeding the symbolic threshold of €1 billion and a number of beneficiary employees below 100,000. In 2021, the AGS Scheme intervened in 68.4% of cases for companies in judicial liquidation. 30% of its interventions concerned companies in receivership and 1.6% companies in and 1.6% for companies under safeguard.

More information is available in the ERM legal database .

Target groups

Workers Businesses Citizens
Employees in standard employment
Workers in non-standard forms of employment
Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Agreed (outcome) incl. social partner initiative Agreed (outcome) incl. social partner initiative
Form Direct consultation outside a formal body Direct consultation outside a formal body

Social partners' role in the implementation, monitoring and assessment phase:

  • Only employers' organisations
  • Main level of involvement: Peak or cross-sectoral level


The AGS was created by law and managed by the representative national employers' organisations.

Views and reactions




Eurofound (2022), Wage guarantee fund, measure FR-1974-5/2612 (measures in France), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.