Factsheet for measure
FR-1974-5/2612
–
Updated
– measures in France
Wage guarantee fund
Association pour la gestion du régime de garantie des créances des salariés (AGS)
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 €61,824 for 2024.
-
If the contract has been concluded between six months and two years before the opening judgement for insolvency, the maximum is set at €77,280 for 2024.
-
If the contract has been concluded more than two years before the opening judgement for insolvency, the maximum is set at €92,736 for 2024.
There is no minimum duration of the employment relationship.
The system is financed by contributions from all employers the level of which is adjusted according to the economic situation (0.15% of the payroll since July 2017; it has been raised to 0.20% on 1 January 2024 and to 0.25% on 1 July 2024).
In practice, statements of employee claims are drawn up and presented to the AGS by the judicial representative, within less than 30 days for salaries and related items, and within 3 months for other claims (in particular severance pay) from the opening of the collective proceedings.
The AGS provides the judicial representative with the funds needed to pay the sums owed to employees within 5 days of receipt of the statement of wage claims. The trustee immediately pays the sums due to the employees.
Updates
The following updates to this measure have been made after it came into effect.
|
01 July 2024
|
On 1 July 2024, the contribution paid by the employers was raised from 0.20% of the payroll to 0.25%.
|
|
01 January 2024
|
On 1 January 2024, the contribution paid by the employers was raised from 0.15% of the payroll to 0.20%.
|
Use of measure
The number of business failures recorded by the Banque de France continues to rise, reaching more than 63,700 between the third quarter of 2023 and the third quarter of 2024. This level has not been seen since 2015. 5,739 cases were opened by the AGS in Q3 2024, an increase of 8.4% compared with Q3 2023. The number of new cases opened over the last 12 months is expected to stabilise at more than 25,500. In the 3rd quarter of 2024, more than 91,000 employees benefited from the AGS Scheme, an increase of 22.6% compared to the 3rd quarter of 2023. Since the beginning of 2024, the number of beneficiaries of the guarantee has exceeded 197,000, an increase of more than 22% compared with 2023.
More information is available in the
ERM legal database
.
Target groups
Actors and funding
|
Actors
|
Funding
|
National government
Employers' organisations
|
Companies
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
No involvement
|
Agreed (outcome) incl. social partner initiative
|
|
Form
|
Not applicable
|
Any other form of consultation, institutionalised (as stable working groups or committees) or informal
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Only employers' organisations
-
Main level of involvement: Peak or cross-sectoral level
Involvement
The AGS was created by law and managed by the representative national employers' organisations.
Views and reactions
Unknown
Sources
