Sub-paragraph 4: Substitution of the user undertaking in the event of default by the temporary employment undertaking

The substitution of the user undertaking for the temporary employment undertaking, as provided for in article L. 1251-52, applies notwithstanding any agreement to the contrary and notwithstanding the insurance obligations against the risk of non-payment that result from the provisions of articles L. 3253-6 to L. 3253-21.

In the case provided for in Article L. 1251-52, the employee or the social security body or social institution, or, in the event of safeguard, receivership or compulsory liquidation proceedings, the court-appointed agent or liquidator shall inform the user undertaking of the inadequacy of the security by sending it a request for payment of the outstanding sums by registered letter with acknowledgement of receipt or delivered against receipt. The user…

Employees, social security bodies and social institutions have a direct claim against the substitute user undertaking, even when the latter has paid all or part of the sums it owes to the temporary employment contractor for the provision of the employees.

The user undertaking that has paid the sums defined in article L. 1251-49 that are still due is subrogated, to the same extent, in all the rights of the employees, social security bodies or social institutions against the temporary employment contractor.

When a social security body sues a user undertaking, substituted for a temporary employment contractor due to insufficient security, for the reimbursement of social security benefits for failure to pay the contributions due, the sum claimed may not exceed the amount of the contributions due for the employees made available to the user undertaking by the temporary employment contractor.

When a temporary employment undertaking’s guarantee commitment comes to an end, for any reason whatsoever, it may only continue to operate if it has obtained another guarantee commitment under the conditions set out in this paragraph, so that payment of the debts defined in article L. 1251-49 is guaranteed without interruption.

If the guarantee is terminated, the guarantor shall inform the regional directorates for companies, competition, consumption, labour and employment and the bodies responsible for collecting social security contributions, in whose district the head office of the temporary employment agency and each of its establishments are located, by registered letter with acknowledgement of receipt, within three days of being informed.