Effective application of the AGS guarantee is subject to the instigation of protection proceedings, receivership proceedings or legal settlement and the absence of the employer’s available funds to pay employees the claims resulting from the employment contract.

• Employees : any person holder of an employment contract, regardless of the form, is considered as entitled to the AGS guarantee.
• Employees of foreign companies operating in France (transnational bankruptcies of European companies) : employees working in a Member State of the European Union for an employer based in another EU Member State, are covered by the guarantee institution of the country in which they exercise their professional activity on a regular basis.
Those concerned by the AGS include : employees working on a regular basis in France for an employer going through insolvency in another State of the European Union.
Article 8 b of Directive 2002/74 of 23 September 2002 on the protection of employees in case of insolvency of their employer, transposed by the law of 30 January 2008.

All private sector employers are subject to the employee wage guarantee scheme :

• Retailers (individuals or legal entities normally involved in retailing as part of their business) ;
• Craftsmen ;
• Farmers ;
• Professionals (since 1 January 2006) ;
• Legal entities subject to private law ;
• Temporary employment agencies, which are subject to a special contribution rate ;
• Businesses where the majority shareholding is held by the State.
  
  

• Legal entities subject to public law ;
• Condominium associations ;
• Employers of household staff.