Bankruptcy Law

Article L. 625-7 of the Commercial Code provides that claims arising from an employment contract are guaranteed, in the event of the opening of safeguard procedure, by the privilege established by Articles L. 3253-2 to L. 3253-5 of the Labor Code.
Pursuant to these texts, when a safeguard procedure is opened, the remuneration of any kind , such as wages, compensations or commissions as such, due t …

Wages privilege of payment

Article L. 625-7 of the Commercial Code provides that claims arising from an employment contract are guaranteed, in the event of the opening of safeguard procedure, by the privilege established by Articles L. 3253-2 to L. 3253-5 of the Labor Code.

Pursuant to these texts, when a safeguard procedure is opened, the remuneration of any kind , such as wages, compensations or commissions as such, due to employees for the last sixty days of work are, after deduction of any advance payments already received, paid, notwithstanding the existence of any other preferential claim, up to a monthly ceiling identical for all categories of beneficiaries . This ceiling is set by regulation and may not be less than twice the ceiling used to calculate social security contributions. The super-privilege also covers vacation pay and the sums owed to manufacturers by their principals . All of these wage claims are paid in priority to other claims in the safeguard procedure, whether or not they are privileged. On the other hand, salaries due for the period of continued operation after the deadline for authorizing the continuation of the activity lose their super-privileged character .

Article 2331, 3° of the Civil Code, relating to preferential claims on movables in general, also gives the character of a preferential claim to the remuneration and allowances which it lists, such as the remuneration, for the last six months, of employees and apprentices, end-of-contract indemnity, job insecurity indemnity and redundancy back pay. Article 2377, relating to preferential claims on general real estate, confers the same preferential right on these remunerations and allowances.

Finally, in accordance with Article L. 625-8 of the Commercial Code, notwithstanding the existence of any other claim, the preferential claims under Articles L. 3253-2 to L. 3253-5 of the Labor Code must, upon ordinance of the bankruptcy judge, be paid within ten days of the pronouncement of the judgment initiating the procedure by the debtor or, where he has a mission of assistance, by the receiver, if the debtor or the receiver has the necessary funds. However, Article L. 625-8(2) adds that before any determination of the amount of these claims, the debtor or the receiver, if he has a mission of assistance, must, with the authorization of the bankruptcy judge and to the extent of the available funds, immediately pay to the employees, as a provisional amount, a sum equal to one month's unpaid wages, on the basis of the last pay slip. In the absence of available funds, the sums due under the two preceding paragraphs must be paid out of the first cash receipts.

Cass. soc., 7 May 1987, LawLex202100003730JBJ (RJ).

Bankruptcy Law

240. Wages privilege of payment

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240. Wages privilege of payment

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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