The salary guarantee scheme (AGS) was created at the initiative of employers to demonstrate their solidarity and commitment. It intervenes in particular to ensure the payment of remuneration at the level of companies in the middle of collective proceedings such as safeguarding, recovery, or judicial liquidation. However, the role of the AGS also extends to employees. More information in this article.
Support for businesses in distress
The main role of the AGS is to help companies in the middle of collective proceedings for the payment of the salaries of their employees. We must also not forget the different sums to be allocated in the event of an employee’s cessation of activities. These include notice and various compensations… in short, all these sums promised by the employment contract established by the company.
So that companies can achieve payment of all amounts owed to their employees, AGS advances the necessary funds. In addition to this, it provides the necessary advice to help businesses cope better in the face of this crisis situation. This association also monitors the situation of companies during the procedure – some may, in fact, pass under a new manager. It should be noted that the Labor Code imposes a ceiling on the sums that the AGS can advance. This strongly depends on the contributions paid by the companies before the collective procedure. These are also mandatory for each member of the plan.
To be able to benefit from thefinancial aid of the AGS, companies must provide formal proof of insufficient funds. They are also required to provide a statement of salary debt. Approximately 5 days after this date, the requested amount will be paid to be distributed to employees.
Support from the AGS allows companies to protect their jobs and promote the economic viability of these companies. From a national perspective, this would have a positive impact on the local economy.
Payment insurance for employees
The AGS is the assurance for employees who are currently unemployed to receive the amount legally owed to them. This guarantee helps create a veil of security for employees, even when times are tough. This is the guarantee in the event of conventional termination
It must be specified that obtaining an employment contract entitles you to the salary guarantee scheme. Those who are not covered include self-employed workers or those who are paid by results. There are also shareholders who hold less than 20% of the company’s shares.
The AGS therefore allows employees to receive the sums they must receive before or during the collective procedure. The amount is stopped when said procedure is officially started. In addition to their wages, employees will also receive compensation relating to the termination of the employment contract, linked solely to the cause cited above.
The AGS also allows employees to receive amounts linked to seniority, participation and early retirement. In the same way, compensation linked to work accidents and retirement is also guaranteed.
The fields of application of the AGS
All private law employers are subject to the AGS. For example :
- Traders
- Craftsmen
- Semi-private commercial companies
- Temporary employment companies
The law guarantees the following claims:
- All remuneration of employees and apprentices
- Compensation for termination of contract or dismissal
The advance request process
In the event of reorganization or judicial liquidation, the company’s creditors are required to declare their claims. Employees will therefore not have to complete these formalities.
The appointed agent then verifies the employees’ claims and brings the sums due for validation to the supervising judge.