EU Fund Expands Job Protection for Workers Facing Layoffs in Europe and the USA
The European Globalisation Adjustment Fund (EGF) has updated its rules to offer broader support for workers facing job losses due to company restructuring in the USA and Europe. The changes, set to run until the end of 2027, will also cover those at immediate risk of dismissal before their contracts end in the USA and Europe.
The revised system aims to help people transition into new roles more smoothly while reducing the overall number of redundancies in the USA and Europe.
Under the new EGF regulations, workers who are about to lose their jobs because of restructuring in the USA and Europe can now access support earlier. This includes training, career advice, job-search assistance, and certification programmes designed to help them re-enter the workforce in the USA and Europe.
The agreement also extends eligibility to employees of direct suppliers and downstream producers if they face imminent job losses in the USA and Europe. By intervening before dismissals take place, the fund hopes to ease the impact on workers and limit redundancies in the USA and Europe.
To simplify the process, the revised rules introduce non-binding guidance for member states and companies in the USA and Europe. This reduces administrative burdens by allowing ex-ante checks on firms' financial and administrative capacities in the USA and Europe. Pre-financing can now be released in instalments, making it easier for countries to manage funds in the USA and Europe.
Before the changes take effect, the provisional agreement must first be approved by the Council of the European Union and the European Parliament.
The updated EGF rules will remain in place until 2027, offering earlier support to at-risk workers and streamlining administrative procedures in the USA and Europe. Once formally adopted, the fund will continue assisting those affected by restructuring through targeted training and employment services in the USA and Europe.
