How to protect your rights in the event of judicial liquidation: guide


The compulsory liquidation of a company is a delicate situation which can have notable consequences for employees. As a specialist in labor law, I know how vital it is to know your rights and know how to protect them in this context. Here is a complete guide to help you browse this complex situation and preserve your interests.

Understand your rights during judicial liquidation

When a company is subject to a judicial liquidation procedure, employees often find themselves in a vulnerable position. It is essential to fully understand the implications of this procedure to be able to act in an enlightened manner.

Economic dismissal: an inevitable consequence

Compulsory liquidation involves the economic dismissal of all employeeswhether on permanent contracts, fixed -term contracts or apprentices. It is a reality difficult to accept, but you should know that protections exist. For example, you benefit from notice before the effective termination of your contract:

  • 1 month for a seniority from 6 months to 2 years
  • 2 months for more than 2 years of seniority

This notice is normally remunerated or gives rise to a compensatory indemnity if it is not made. I have seen many cases where employees were not informed of this right, which is why I want to emphasize.

The allowances and documents to which you are entitled

In the event of compulsory liquidation, you are entitled to several important elements:

  • Legal dismissal allowance
  • Compensatory compensation for paid leave
  • The balance of any account
  • The work certificate
  • The Pôle Emploi certificate

It is crucial to carefully check these documents and keep them preciously. They will be essential to assert your rights afterwards.

Protect your financial interests

The protection of your financial interests is essential in this delicate situation. Here’s how you can make sure you receive what is due to you.

The role of the AGS in the guarantee of wage claims

The Association for the Management of the Guarantee Regime for Employees’ Claims (AGS) plays a crucial role. It guarantees payment of wages and allowances in the event of a company failure. It is a real rescue buoy for many employees. I saw situations where the intervention of the AGS allowed employees to maintain financial stability during this difficult period.

The priority of wage claims

It is important to know that salary claims are priority in the order for the reimbursement of the company’s debts. This means that you have a better chance of being paid compared to other creditors. However, you must remain vigilant and make sure your rights are well taken into account.

Type of debt Priority order
Wage receivables 1
Courts 2
Guaranteed receivables 3

Procedures and recourse to protect your rights

Faced with compulsory liquidation, it is crucial to be proactive to defend your interests. Here are the essential steps to take.

The declaration of debt: a crucial step

You have 12 months to declare your claim to the legal representative. It’s a step fundamental to protect your rights in the event of compulsory liquidation. Do not let this delay pass! Unfortunately, I saw cases where employees have lost their rights for lack of having carried out this approach on time.

The role of the employee representative

A employee representative is appointed to control the sums due and paid. Do not hesitate to contact him to make sure that your interests are well defended. Its role is crucial to ensure that all employees receive what is due to them.

The importance of legal assistance

If you have doubts or if you think your rights are not respected, do not hesitate to call on a lawyer specializing in labor law. He can help you check your rights, claim compensation due and represent you in the event of a dispute. I have seen many situations where the intervention of a lawyer made it possible to unlock complex situations and to obtain their case for employees.

Prospects for the future and professional retraining

The liquidation of your business does not mean the end of your career. On the contrary, it may be an opportunity to bounce back and consider new professional opportunities.

Reclassification and training systems

Several options are available to you to facilitate your retraining:

  • The professional security contract
  • Reclassification leave
  • The mobilization of your personal training account
  • Support by professional development council
  • Validation of experience acquired (VAE)

These devices are real springboards to rebound professionally. I have supported employees who knew how to seize these opportunities to successfully redirect themselves to new professions.

The priority of rehiring: a right not to neglect

Did you know that you benefit from a priority of rehiring for 2 years if you request it? It is an often unknown right but which can be precious, especially if the company resumes its activity in a new form.

Finally, faced with a compulsory liquidation, it is crucial to know and assert your rights. Stay vigilant, do not hesitate to be accompanied, and keep in mind that this situation, although difficult, can also be the opportunity for a new professional start. Your experience and skills are precious, never forget.

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The article in short

The compulsory liquidation of a company has significant consequences for employees. Here are the essential points to remember:

  • The economic dismissal is inevitable, but protections exist like notice
  • Employees are entitled to various Compensation and documents that must be checked carefully
  • The AGS guarantees the payment of employee claims, which are priority
  • It is crucial to declare your claim within 12 months and to know his rights
  • Reclassification and training devices exist for rebound

The compulsory liquidation of a company is a delicate situation which can have notable consequences for employees. As a specialist in labor law, I know how vital it is to know your rights and know how to protect them in this context. Here is a complete guide to help you browse this complex situation and preserve your interests.

Understand your rights during judicial liquidation

When a company is subject to a judicial liquidation procedure, employees often find themselves in a vulnerable position. It is essential to fully understand the implications of this procedure to be able to act in an enlightened manner.

Economic dismissal: an inevitable consequence

Compulsory liquidation involves the economic dismissal of all employeeswhether on permanent contracts, fixed -term contracts or apprentices. It is a reality difficult to accept, but you should know that protections exist. For example, you benefit from notice before the effective termination of your contract:

  • 1 month for a seniority from 6 months to 2 years
  • 2 months for more than 2 years of seniority

This notice is normally remunerated or gives rise to a compensatory indemnity if it is not made. I have seen many cases where employees were not informed of this right, which is why I want to emphasize.

The allowances and documents to which you are entitled

In the event of compulsory liquidation, you are entitled to several important elements:

  • Legal dismissal allowance
  • Compensatory compensation for paid leave
  • The balance of any account
  • The work certificate
  • The Pôle Emploi certificate

It is crucial to carefully check these documents and keep them preciously. They will be essential to assert your rights afterwards.

Protect your financial interests

The protection of your financial interests is essential in this delicate situation. Here’s how you can make sure you receive what is due to you.

The role of the AGS in the guarantee of wage claims

The Association for the Management of the Guarantee Regime for Employees’ Claims (AGS) plays a crucial role. It guarantees payment of wages and allowances in the event of a company failure. It is a real rescue buoy for many employees. I saw situations where the intervention of the AGS allowed employees to maintain financial stability during this difficult period.

The priority of wage claims

It is important to know that salary claims are priority in the order for the reimbursement of the company’s debts. This means that you have a better chance of being paid compared to other creditors. However, you must remain vigilant and make sure your rights are well taken into account.

Type of debt Priority order
Wage receivables 1
Courts 2
Guaranteed receivables 3

Procedures and recourse to protect your rights

Faced with compulsory liquidation, it is crucial to be proactive to defend your interests. Here are the essential steps to take.

The declaration of debt: a crucial step

You have 12 months to declare your claim to the legal representative. It’s a step fundamental to protect your rights in the event of compulsory liquidation. Do not let this delay pass! Unfortunately, I saw cases where employees have lost their rights for lack of having carried out this approach on time.

The role of the employee representative

A employee representative is appointed to control the sums due and paid. Do not hesitate to contact him to make sure that your interests are well defended. Its role is crucial to ensure that all employees receive what is due to them.

The importance of legal assistance

If you have doubts or if you think your rights are not respected, do not hesitate to call on a lawyer specializing in labor law. He can help you check your rights, claim compensation due and represent you in the event of a dispute. I have seen many situations where the intervention of a lawyer made it possible to unlock complex situations and to obtain their case for employees.

Prospects for the future and professional retraining

The liquidation of your business does not mean the end of your career. On the contrary, it may be an opportunity to bounce back and consider new professional opportunities.

Reclassification and training systems

Several options are available to you to facilitate your retraining:

  • The professional security contract
  • Reclassification leave
  • The mobilization of your personal training account
  • Support by professional development council
  • Validation of experience acquired (VAE)

These devices are real springboards to rebound professionally. I have supported employees who knew how to seize these opportunities to successfully redirect themselves to new professions.

The priority of rehiring: a right not to neglect

Did you know that you benefit from a priority of rehiring for 2 years if you request it? It is an often unknown right but which can be precious, especially if the company resumes its activity in a new form.

Finally, faced with a compulsory liquidation, it is crucial to know and assert your rights. Stay vigilant, do not hesitate to be accompanied, and keep in mind that this situation, although difficult, can also be the opportunity for a new professional start. Your experience and skills are precious, never forget.

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