USG PEOPLE : gets adverse ruling in French appeal case

Almere, 14 December 2015 - In 2011 USG People received an assessment relating to Start People from the French social security authority URSSAF following a social security investigation. The assessment concerns the assumption by URSSAF that taxes and social security contributions owed on the salaries of temporary employees were calculated incorrectly. The assessment concerns the years 2009 and 2010 and amounts to € 16.9 million.

USG People lodged an appeal against the URSSAF assessment with the Arbitration Committee (Commission de Recours Amiable) at the end of February 2012. This appeal was dismissed on 21 June 2012. USG People subsequently lodged an appeal with the Tribunal des affaires de sécurité sociale at the end of July 2012 and the court ruled in USG People's favour on 3 September 2014. URSSAF then appealed against this decision. Given this ruling by the Tribunal des affaires de sécurité sociale and based on USG People's position that the payments as made were in accordance with the law, the assessment amount was recognised as a contingent liability in the 2014 financial statements. 

Now that the French appeal court has ruled in favour of URSSAF USG People has decided to charge the total costs relating to the assessment, including the interest on tax due (estimated at € 3.4 million), to income as non-recurring costs in the fourth quarter of 2015. USG People will study the ruling and look into the legal possibilities of lodging an appeal with a higher court. Should USG People lodge an appeal and go on to win the procedure, the amounts refunded will be recognised as non-recurring income.

For more information, please contact:

Leen Geirnaerdt, CFO
Telephone: +31 (0)36 529 9507

Disclaimer

This press release is available in Dutch and English. In the event of ambiguities, the Dutch text shall prevail.

About USG People

With revenue of € 2.4 billion in 2014 USG People is one of the largest providers of HR services in Europe with established and recognisable international brands. The brand portfolio comprises Start People, Unique, Secretary Plus, USG Professionals and Solvus.

Headquartered in the Dutch city of Almere, USG People is active in Belgium, France, Germany and the Netherlands. USG People is listed on the Euronext Amsterdam stock exchange and is included in the AMX Index.

For more information on USG People or any of its operating companies, please visit our website at www.usgpeople.com:
http://www.usgpeople.com.