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Section 2: Privileges and insurance in the event of safeguard, reorganisation or compulsory liquidation proceedings

Article L3253-2 of the French Labour Code

When safeguard, reorganisation or compulsory liquidation proceedings are initiated, remuneration of any kind due to employees for the last sixty days worked, less any advance payments already received, is paid, notwithstanding the existence of any other preferential claim, up to a monthly ceiling which is identical for all categories of beneficiaries. This ceiling is set by regulation but may not be less than twice the ceiling used to calculate social…

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Article L3253-3 of the French Labour Code

The remuneration provided for in the first paragraph of Article L. 3253-2 includes : 1° Wages, salaries or commissions as such ; 2° Additional benefits, in particular the compensation provided for in article L. 1226-14, the compensation in lieu of notice provided for in article L. 1234-5, the termination benefit provided for in article L. 1243-8 and the termination benefit provided for in article L. 1251-32.

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Article L3253-5 of the French Labour Code

The sums owed to façonniers by their principals are paid, when the latter are the subject of safeguard, reorganisation or compulsory liquidation proceedings, notwithstanding the existence of any other preferential claim with the exception of those guaranteed by article L. 3253-2, up to the total amount of remuneration of any kind owed to the employees of these façonniers, in respect of the last sixty days of work or apprenticeship preceding…

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Article L3253-6 of the French Labour Code

All employers under private law shall insure their employees, including those seconded abroad or expatriates referred to in article L. 5422-13, against the risk of non-payment of sums due to them under their employment contract, in the event of safeguard, receivership or compulsory liquidation proceedings.

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Article L3253-8 of the French Labour Code

The insurance mentioned in article L. 3253-6 covers : 1° Sums owed to employees on the date of the judgment opening any receivership or compulsory liquidation proceedings, as well as contributions owed by the employer under the Contrat de Securisation Professionnelle ; 2° Claims arising from the termination of employment contracts occurring : a) During the observation period ; b) In the month following the judgement adopting the safeguard, recovery…

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Article L3253-9 of the French Labour Code

Claims arising from the dismissal of employees benefiting from special protection relating to dismissal are also covered where the administrator, the employer or the liquidator, as the case may be, has indicated its intention to terminate the employment contract during the periods mentioned in 2° of Article L. 3253-8.

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Article L3253-11 of the French Labour Code

Also covered are early retirement payments due to an employee or former employee under a professional or inter-professional agreement, a collective agreement or a company agreement. These provisions apply when the agreement or convention provides for early retirement at the age of fifty-five at the earliest. The guarantee provided by this article is limited under conditions determined by decree.

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