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 a receivership procedure, by the privilege set out in Articles L. 3253-2 to L. 3253-5 of the Labor Code.
Under the terms of these texts, when a receivership procedure is initiated, remuneration of any kind , such as wages, salaries or commissions proper,  …

Wage payment privilege

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 a receivership procedure, by the privilege set out in Articles L. 3253-2 to L. 3253-5 of the Labor Code.

Under the terms of these texts, when a receivership procedure is initiated, remuneration of any kind , such as wages, salaries or commissions proper, 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 privileged claim, up to an identical monthly ceiling for all categories of beneficiaries . Set by regulation, this ceiling may not be less than twice the ceiling used to calculate social security contributions. The super-privilege also covers holiday pay and sums owed to manufacturers by their principals . All of these wage claims are paid in priority to other claims under the receivership procedure, whether privileged or not. On the other hand, wages owed for the period of continued operation after the deadline for authorization of continued operation lose their super-privileged status .

Article 2331, 3° of the Civil Code, relating to privileged claims on movable property as a whole, also gives the status of privileged claim to the remuneration and indemnities it lists, such as the remuneration of employees and apprentices for the last six months, termination indemnities, job insecurity indemnities and redundancy indemnities. Article 2377, relating to privileged claims on general property, confers the same privileged status on such remuneration and compensation.

Lastly, in accordance with Article L. 625-8 of the Commercial Code , notwithstanding the existence of any other claim, the privileged claims under Articles L. 3253-2 to L. 3253-5 of the Labor Code must, by ordinance of the bankruptcy judge, be paid within ten days of delivery of the judgment opening the procedure by the debtor or, where the debtor has a mission to administer the business , by the receiver, if the debtor or the receiver has the necessary funds. However, Article L. 625-8 adds that before the amount of these claims is established, the debtor or the receiver, if it has a mission to administer the business , must, with the authorization of the bankruptcy judge and subject to the availability of funds, immediately pay the employees, on a provisional basis, a sum equal to one month's unpaid wages, based on the last pay slip. In the absence of available funds, the sums due under the two preceding paragraphs must be paid from the first cash receipts.

Applicable to receivership by reference from art. L. 631-18.

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

Also applicable to the receivership procedure on reference from art. L. 631-18.

Bankruptcy Law

542. Wage payment privilege

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542. Wage payment privilege

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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