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Homepage Europe and the World European Funds European Globalisation Fund (EGF) Eligibility requirements
Article

Eligibility requirements

The eligibility criteria for receiving funding from the European Globalisation Adjustment Fund for Displaced Workers (EGF) differ depending on whether a specific redundancy event has already occurred or (under the new funding option) job displacements are imminent.

If a specific redundancy event has already occurred, funding can be made available under the following conditions:

  • within a reference period of four months, there are at least 200 cases of job displacements or of self-employed workers ceasing activity in an enterprise; this includes corresponding cases at suppliers or downstream producers;
  • within a reference period of six months, there are at least 200 cases of job displacements or of self-employed workers ceasing activity, in particular in SMEs all operating in the same NACE Rev. 2 division and located in one or two contiguous regions at NUTS 2 level or in more than two contiguous regions at NUTS 2 level, in which case at least 200 employees or self-employed persons in two of these regions must be affected;
  • within a reference period of four months, there are at least 200 job displacements or self-employed persons ceasing activity, in particular in SMEs, all operating in the same or in different sectors of the NACE Rev. 2 division and located in the same region at NUTS 2 level;
  • there is a social plan, and
  • it is being implemented by an outplacement service provider

If job displacements are imminent, funding may be available under the following conditions:

  • within a four-month reference period, there is a risk of at least 200 cases of job displacements or the cessation of business operations by self-employed individuals within an enterprise; this includes corresponding cases at suppliers or downstream manufacturers;
  • within a six-month reference period, there is a risk of at least 200 cases of job displacements or the cessation of business activities by self-employed individuals in an enterprise, particularly in SMEs, all of which operate in the same NACE Rev. 2 division and are located in one or two contiguous regions at the NUTS-2 level or in more than two contiguous regions at the NUTS-2 level, in which case at least 200 employees or self-employed individuals must be affected in two of these regions;
  • within a four-month reference period, there is a risk of at least 200 cases of job displacements or the cessation of business activities by self-employed individuals in an enterprise, particularly in SMEs operating in the same or different sectors of the NACE Rev. 2 division and located in the same NUTS 2 region;
  • the enterprise is responsible for implementing the EGF funding, and
  • the enterprise ensures co-financing amounting to 40%.

Who can apply for support from the EGF?

If interested in EGF funding, workers or employers should contact the Federal Ministry of Labour and Social Affairs (BMAS) or the Federal Employment Agency (Bundesagentur für Arbeit, BA) as early as possible if large-scale job displacements or the cessation of business activities by self-employed individuals appear likely. You can find the contact information here. The BMAS, together with the BA and the relevant social partners, will assess whether the requirements for EGF funding are met. Enterprises interested in receiving funding under the Regulation’s extended scope of application (for those directly affected by imminent job displacements) can find the corresponding application form in the section “Further Information on the EGF” (further down on this page). The application form must be completed in full and submitted to the BA.

If the eligibility requirements are met and all relevant information is provided, the BMAS, as the EGF managing authority, submits an application to the European Commission. The application must be approved by the EU budgetary authority (the Council and the European Parliament).

The EGF measures are implemented by the outplacement service provider responsible for implementing the social plan (funding for a specific redundancy event) or by the enterprise (funding for imminent job displacements), in close coordination with the BMAS and the BA.