Legal provisions of COM(2025)140 - Amendment of Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises undergoing restructuring - Main contents
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| dossier | COM(2025)140 - Amendment of Regulation (EU) 2021/691 as regards support to workers affected by imminent job displacement in enterprises ... |
|---|---|
| document | COM(2025)140  |
| date | April 1, 2025 |
Contents
Article 1
(1) In Article 1, paragraph 2 is replaced by the following:
‘2. In accordance with Article 4, the EGF shall offer support to displaced workers and self-employed persons whose activity has ceased in the course of major restructuring events and to workers affected by imminent job displacement in enterprises undergoing restructuring.’;
(2) Article 2 is replaced by the following:
‘Article 2
Mission and objectives
‘1. The EGF shall support socioeconomic transformations that are the result of globalisation and of technological and environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change. The EGF shall constitute an emergency fund. As such, the EGF shall contribute to the implementation of the principles set out in the European Pillar of Social Rights and shall enhance social and economic cohesion among regions and Member States.
2. The objectives of the EGF are to demonstrate solidarity and promote decent and sustainable employment in the Union by offering assistance in the case of major restructuring events, in particular those caused by challenges related to globalisation, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy, or as a consequence of digitisation or automation. The EGF shall support beneficiaries in returning to decent and sustainable employment as soon as possible. Particular emphasis shall be placed on measures that help the most disadvantaged groups. The EGF shall also support workers affected by imminent job displacement in acquiring the skills needed to help them transfer into a different role, or to change jobs.’;
(3) Article 3 is amended as follows:
(a)the following point is inserted
‘(1a) ‘worker affected by imminent job displacement’ means a worker, regardless of the type or duration of their employment relationship, whose employment contract or relationship is expected to be ended by redundancy as of the date on which the employer notifies the competent public authority in writing of the projected collective redundancies in accordance with Article 3(1) of Directive 98/59/EC;’;
(b)the following point is added:
‘(6) ‘enterprise undergoing restructuring’ means an enterprise undergoing a process that involves collective redundancies as referred to in Directive 98/59/EC.’;
(4) Article 4(1) is amended as follows:
(a)paragraph 1 is replaced by the following:
‘1. Member States may apply for financial contributions from the EGF for measures targeting displaced workers, workers affected by imminent job displacement, and self-employed persons in accordance with the provisions laid down in this Article.’;
(b)in paragraph 2, the following point is added:
‘(d) at least 200 workers affected by imminent job displacement in an enterprise undergoing restructuring in a Member State.’;
(5) Article 5 is amended as follows:
(a)in the first paragraph, the first sentence is replaced by the following:
‘The applicant Member State shall specify the method used for calculating the number of displaced workers, workers affected by imminent job displacement, and self-employed persons for the purpose of Article 4 as at one or more of the following dates:’;
(b)the second paragraph is replaced by the following:
‘In the cases referred to in the first paragraph, point (a), the applicant Member State shall provide the Commission with additional information about the actual number of redundancies effected in accordance with Article 4, before the completion of the Commission’s assessment, for all applications concerning beneficiaries referred to in Article 6, first paragraph, points (a) and (b).’;
(6) in Article 6, first paragraph, the following point is added:
‘(c) workers affected by imminent job displacement in an enterprise undergoing restructuring. The workers shall remain eligible even in case of an actual termination of the work relationship. Only those restructuring events shall be eligible that qualify as collective redundancies under Directive 98/59/EC.’;
(7) Article 7 is amended as follows:
(a)paragraph 1 is replaced by the following:
‘1. A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help workers referred to in Article 6, first paragraph, point(c) acquire the skills they need to transfer either into a different role with their current employer or to a different employer.’;
(b)in paragraph 2, second subparagraph, the following point is added:
‘(c) ‘For the beneficiaries referred to in Article 6, first paragraph, point (c), the coordinated package may include training and retraining, tailored to the individual worker’s needs, including on information and communication technology and other skills required in the digital age, certification of acquired knowledge and skills, individual job-search assistance services and targeted group activities, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion and cooperation activities. It may not include short-time work schemes.’;
(8) Article 8 is amended as follows:
(a)the title is replaced by the following:
‘Article 8
Applications for EGF assistance to displaced workers and self-employed persons whose activity has ceased’;
(b)paragraph 6 is replaced by the following:
‘6. Based on the information provided by the applicant Member State, the Commission shall complete its assessment of the application’s compliance with the conditions for providing a financial contribution within 30 working days of the receipt of the complete application or, where applicable, of the translation of the application.
Where the Commission is unable to meet that deadline, it shall inform the Member State before that deadline and set a new date to complete its assessment. That new date shall be no later than 20 working days after the deadline under the first subparagraph.’;
(c)in paragraph 7 point l) is replaced by the following:
‘l) a reasoned statement that the requested EGF support complies with the procedural and material Union rules on State aid as well as a statement outlining why the coordinated package does not replace measures that are the responsibility of employers by virtue of national law or collective agreements.’;
(9) The following Article 8a is inserted:
‘Article 8 a
Applications for EGF assistance to workers affected by imminent job displacement
1. Enterprises undergoing restructuring may request the Member State concerned to submit an application for a financial contribution from the EGF, if the intervention criteria set out in Article 4(2), point (d) are met, and if the enterprise wishes to offer EGF-co-financed assistance to those parts of its workforce affected by imminent job displacement, in line with Article 6, first paragraph, point (c). Such a request shall be submitted by the enterprise within two weeks of the date on which it had notified the public authorities in writing of the projected collective redundancies in accordance with Article 3(1) of Directive 98/59/EC.
2. All Member States shall designate a Single Entry Point to which enterprises can direct requests referred to in paragraph 1, and publish relevant guidelines and templates. The information collected from these templates shall cover all the information necessary for a financial contribution application from the EGF as set out in paragraph below.
3. Member States shall treat all requests equally in the order of receipt without exerting any discretion regarding the admissibility and eligibility of these requests, and shall submit applications for assistance received from enterprises. Member States shall not introduce any additional requirements or alter the requirements set out in this Regulation.
4. The applicant Member State shall submit to the Commission a financial contribution application from the EGF within one week of the date on which it received an enterprise’s request.
5. If requested by the enterprise, the Member State concerned shall provide guidance to the enterprise throughout the application procedure.
6. If requested by the applicant Member State, the Commission shall provide guidance to the Member State throughout the application procedure.
7. Within 10 working days of the date of submission of the application, or, where applicable, within 10 working days of the date on which the Commission is in possession of a translation of the application, whichever is the later, the Commission shall acknowledge receipt of the application and request from the applicant Member State any additional information that it requires in order to assess the application.
8. Where the Commission requests additional information, the Member State shall reply within 15 working days of the date of the request. The Commission shall extend that deadline by 10 working days at the request of the applicant Member State. Any such requests for extension shall be duly reasoned.
9. Based on the information provided by the applicant Member State, the Commission shall complete its assessment of the application’s compliance with the conditions for providing a financial contribution within 30 working days of the receipt of the complete application or, where applicable, of the translation of the application.
Where the Commission is unable to meet that deadline, it shall inform the applicant Member State before that deadline, setting a new date for the completion of its assessment. That new date shall be no later than 20 working days after the deadline under the first subparagraph.
10. An application shall contain the following information:
(a) the identification of the enterprise concerned;
(b) an assessment of the number of jobs affected by displacement in accordance with Article 6, first paragraph, point (c);
(c) a brief description of the events that led to the restructuring;
(d) a confirmation that the enterprise has complied and continues to comply with its legal obligations or collective agreements governing those projected redundancies and is providing for its workers accordingly, and a description of the procedures followed by the enterprise for consulting the targeted beneficiaries or their representatives;
(e) an estimated breakdown of the composition of the targeted beneficiaries by gender, age group and educational level, used in the design of the coordinated package;
(f) a detailed description of the coordinated package and related expenditure, including any measures in support of employment initiatives for disadvantaged, young and older beneficiaries;
(g) the estimated budget for each of the components of the coordinated package in support of the targeted beneficiaries that will be offered by the enterprise;
(h) the dates on which the provision of the coordinated package to the targeted beneficiaries and the activities to implement the EGF, as set out in Article 7, were started or are due to be started;
(i) the estimated budget for any preparatory, management, information and publicity, control and reporting activities by the applicant Member State in relation to such an application;
(j) a reasoned statement that the requested EGF support complies with the procedural and material Union rules on State aid as well as a reasoned statement outlining why the coordinated package does not replace measures that are the responsibility of employers by virtue of national law or collective agreements;
(k) the confirmation that the enterprise concerned will co-finance the measures and that it is the only source for the national co-funding.’;
(10) In Article 11, paragraph 1 is replaced by the following:
‘1. At the initiative of the Commission, a maximum of 1.5% of the maximum annual amount of the EGF may be used for technical and administrative expenditure for its implementation, such as preparatory, monitoring, control, audit and evaluation activities, as well as data gathering, including in relation to corporate information technology systems, communication activities and those enhancing the EGF’s visibility as a fund or for specific projects and other technical assistance measures. Such measures may cover future and previous programming periods.’;
(11) Article 13 is amended as follows:
(a)paragraph 1 is replaced by the following:
‘1. On the basis of the assessment carried out in accordance with Article 8 or Article 8a, in particular taking into account the number of targeted beneficiaries, the proposed measures and the estimated costs, the Commission shall evaluate and determine the amount of a financial contribution from the EGF, if any, that may be made within the limits of the resources available.’;
(b)the following paragraph is inserted:
‘2a. The co-financing rate for expenditure incurred by the Member State for beneficiaries referred to in Article 6, first paragraph, point (c) and relating to measures set out in Article 7(6), shall be 100%.’;
(c)paragraph 3 is replaced by the following:
‘3. Where, on the basis of the assessment carried out in accordance with Article 8 or Article 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately adopt a decision on a financial contribution as set out in Article 15 (6).’;
(12) In Article 14, paragraphs (1) and (2) are replaced by the following:
‘1. Expenditure shall be eligible for a financial contribution from the EGF from the dates set out in the application in accordance with Article 8(7), point (j), or Article 8a(10), point (h), on which the Member State or the enterprise concerned starts, or is due to start, providing the coordinated package to the targeted beneficiaries or on which the Member State incurs administrative expenditure to implement the EGF in accordance with Article 7(1) and (5).
2. The Member State or the enterprise shall start implementing the eligible measures set out in Article 7 without undue delay and shall carry out those measures as soon as possible, and in any event within 24 months from the date of entry into force of the financial contribution decision.’;
(13) Article 15 is replaced by the following:
‘Article 15
Budgetary procedure and implementation
‘1. To ensure that the assistance is provided as soon as possible to the eligible beneficiaries, the Commission shall submit a proposal to mobilise the EGF to the European Parliament and to the Council in accordance with paragraphs 2 or 3.
2. The Commission shall submit its proposal for a decision to mobilise the EGF to the European Parliament and the Council where it has received one application for EGF support and at least one of the following conditions is met:
a) The Commission assesses, following application or information received from the Member States, that one of the conditions set out in Article 4 paragraph 2, 3 or 4, is met;
b) The Commission is informed of the cessation of activities leading to job losses of more than 1 000 workers;
c) The Commission is informed of large-scale restructuring events with imminent displacement affecting more than 1 000 workers.
3. The Commission may request the full mobilisation of the maximum annual amount for the EGF by the end of February every year. The Commission proposal shall include the following elements, based on information provided by the Member States:
(i) the number of potential applications from each Member State concerned;
(ii) the sectors of activities concerned;
(iii) the estimated number of enterprises which could request Member States to apply for EGF assistance;
(iv) the estimated number of workers displaced or at risk of imminent job displacement.
At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer of the maximum annual amount to the relevant budgetary lines.
When the maximum annual amount has not been mobilised under the first subparagraph of this paragraph, the Commission shall request the mobilisation of the EGF per application received. The Commission proposal for a decision to mobilise the EGF per application shall include the assessment carried out in accordance with Article 8(6) or Article 8(a) (9), together with a summary of the information on which that assessment is based and the reasons justifying the amounts proposed. At the same time as it submits its proposal for a decision to mobilise the EGF, the Commission shall submit to the European Parliament and to the Council a proposal for a transfer to the relevant budgetary lines.
4. Member States shall provide the Commission with the information referred to in paragraph 2 by the end of December each year.
5. The decision to mobilise the EGF shall be taken jointly by the European Parliament and the Council. The budgetary transfer in relation to the EGF shall be made in accordance with Article 31 of the Financial Regulation.
6. Where the Commission has concluded that the conditions for providing a financial contribution from the EGF under Article 4 are met, it shall adopt a decision on a financial contribution. That decision shall constitute a financing decision within the meaning of Article 110 of the Financial Regulation.
7. When the maximum annual amount has been mobilised pursuant to the first subparagraph of paragraph 3, the Commission shall inform the European Parliament and the Council immediately upon the adoption of each financial contribution decision.’
(14) Article 16 is replaced by the following:
‘Article 16
Insufficient funds
If the remaining commitment appropriations available in the EGF are not sufficient to cover the amount of assistance that is necessary for a financial contribution, the Commission may postpone the adoption of a financial contribution decision until commitment appropriations are available in the following year. The annual budgetary ceiling of the EGF shall be respected in all circumstances.’
(1) In Article 17, the following paragraph is added:
‘6. Within one week of receipt of the Commission’s pre-financing payment, the Member State concerned shall make available to the enterprise concerned that part of the pre-financing payment that relates to the coordinated package of measures implemented by the enterprise. The Member State shall retain the part of the pre-financing that relates to measures referred to in Article 7(5).’;
(2) In Article 20, the following paragraph is added:
‘3. In cases where an enterprise is implementing a financial contribution from the EGF for workers affected by imminent job displacement, the enterprise shall by the end of the sixth month after the expiry of the implementation period provide the Member State concerned with all relevant information specified in paragraph 1.’;
(3) In Article 22, paragraph 4 is replaced by the following:
‘4. A beneficiary survey shall be launched during the sixth month after the end of each implementation period. The beneficiary survey shall be open to participation for at least four weeks. Member States shall distribute the beneficiary survey to the beneficiaries, send out at least one reminder and inform the Commission of the distribution and reminder sent. In cases involving assistance implemented by an enterprise to beneficiaries under Article 6, first paragraph, point (c), that enterprise is responsible for distributing the survey prepared by the Commission among the workers that have participated in the measures. The responses to the beneficiary surveys shall be collated and analysed by the Commission for the use in future evaluations.’
(4) The following new Article is inserted:
‘Article 28a
Transitional measures
By derogation from Article 15(1), the Commission may submit a proposal to mobilise the remainder of the maximum annual amount for 2025 for the EGF to the European Parliament and to the Council, subject to the conditions set in Article 15, as of….[ the date of the entry into force of this Regulation].’
Article 2 - Entry into force
This Regulation shall be binding in its entirety and directly applicable in all Member States.