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Exclusion of direct action by the employee against the AGS – Employment contract

Result of the law n ° 73-1194 of December 27, 1973 instituting the insurance scheme for employees’ claims, the AGS (for Insurance Guarantee of Salaries) allows employees to obtain payment of their salary claims in the event reorganization or judicial liquidation. This guarantee is financed by an employer’s contribution paid to Urssaf. Globally, the AGS covers all sums due to employees in execution of the employment contract and payable on the date of the judgment opening the reorganization or liquidation procedure (Soc. 12 June 2002, n ° 00-41.153 ; Soc. 30 Oct. 2002, n ° 00-46.779). As soon as the debt is deemed to be overdue, the AGS can be mobilized to cover the sums due to the employee for the performance of the employment relationship. If the extent of the debts covered by the AGS gave rise to an abundant dispute (Soc. 6 May 1997, n ° 94-42.699 P, D. 1998. 221 , obs. Y. Serra ; Dr. soc. 1997. 751, obs. R. Vatinet ; Soc. 23 nov. 2004, n° 02-41.836 P, D. 2005. 18 ; Dr. soc. 2005. 221, obs. C. Radé ; Soc. Dec 15 2004, n ° 02-46.973), the Cour de cassation recently had to question the merits of the industrial tribunal action taken directly by the employee against the AGS.

In this case, a company had been the subject of judicial liquidation, resulting in …

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