European Globalisation Adjustment Fund: support for workers at risk of job loss

Those facing unemployment to also receive EGF support

New rules to also cover workers employed by enterprises’ suppliers and downstream producers

Request for support for workers facing unemployment will need to be approved by Parliament and Council

On Tuesday, Parliament adopted legislation to extend support from the European Globalisation Adjustment Fund (EGF) to those facing imminent redundancy.

The revision of the EGF, already agreed by Parliament and Council, means support from the fund will also apply to workers at risk of job loss, so that they can acquire skills that could help them find new employment in the same company or elsewhere, before facing unemployment.

The updated rules will allow companies undergoing restructuring to request EGF support for employees facing imminent redundancy, including for workers employed by affected enterprises’ suppliers and downstream producers.

A minimum of 40% of the annual maximum EGF will be reserved for applications concerning the cessation of activity of displaced workers or self-employed persons. This should not exceed €4 million per application for workers affected by imminent job displacement. The deadline for applying for EGF support in cases of imminent job displacement will be set at 14 weeks after a company has informed public authorities of upcoming redundancies.

The new rules will apply until the end of 2027, when the current EGF expires. As is the case for the EGF in its current form, a request for support for workers facing unemployment will have to be approved by both the Parliament and the Council.

Quote

Liesbet Sommen (EPP, BE), rapporteur for the file, said: “Today, we are taking a decisive step to support workers who are facing sudden unemployment. We are protecting not only workers who have already lost their jobs, but also those who are on the verge of losing their jobs. These workers need support to help them find a new job or to learn new skills to change profession. The revised European Globalisation Adjustment Fund does just that: it is a true safety net for people in uncertain times, because, in a rapidly changing labour market, all workers need access to immediate and practical support.”

Next steps

The updated rules were approved in plenary by 566 in favour and 67 against, with 26 abstaining. It still needs to be formally adopted by the Council before publication in the Official Journal of the European Union and entry into force.

Background

The EGF is an emergency fund intended to support workers who lose their jobs in large-scale restructuring events and help them to find other jobs as quickly as possible. It can be used, for instance, to fund career advice, education and training, and entrepreneurship and business creation.