With Regulation (EU) 2026/1139, the European Parliament and Council have updated the rules for the European Globalisation Adjustment Fund for Displaced Workers (EGF), introducing significant changes that affect not only workers involved in corporate restructuring processes but also businesses tasked with managing crisis and reorganization situations. The new regulation amends the previous Regulation (EU) 2021/691, expanding the Fund's scope and allowing interventions to be activated even before redundancies become effective. The objective is to promote more timely management of restructuring, supporting workers' reskilling and redeployment pathways and reducing the employment impact of corporate crises.
For businesses, this represents a particularly significant development. The ability to access European support already in the preparatory phase of collective redundancies allows for earlier planning of worker support measures, provided that the requirements and timelines stipulated by the legislation are met.
Access to the Fund, however, is not automatic. The new regulation introduces very stringent eligibility criteria and a procedure that requires careful planning. Interested businesses must verify in advance that the conditions set forth by European legislation are met, as failure to comply with the requirements can result in the loss of co-financing.
One of the main innovations concerns the range of beneficiaries. In addition to employed and self-employed workers who have already lost their jobs, the EGF can now also be activated for workers whose redundancy is imminent, provided that the collective redundancy procedure has already been formally initiated through the communication required by European Directive 98/59/EC. Protection is also extended to direct suppliers and downstream producers involved in the same production chain affected by the restructuring, recognizing the effects that a corporate crisis can have on the entire economic system.
The regulation maintains well-defined numerical requirements for accessing the Fund. In most cases, at least 200 workers must be involved within the timeframe established by the legislation, with different criteria depending on whether it concerns a single company, multiple companies belonging to the same sector, or companies located in specific territorial areas. However, a derogation is still provided for small labor markets or in exceptional circumstances, if it can be demonstrated that the redundancies have a particularly severe impact on the local economy.
From an operational perspective, the Fund exclusively finances active labor market policy measures. Eligible interventions include training and reskilling programs, skills certification, guidance, mentoring, and redeployment support services. For workers who have already been made redundant, some temporary financial measures may also be provided, provided they are strictly linked to re-employment pathways.
For workers at risk of redundancy, resources are exclusively allocated to interventions aimed at improving employability. Subsidies for starting new businesses and all measures not directly linked to beneficiaries' participation in active labor policies remain excluded. The regulation also reiterates that the Fund cannot replace obligations already stipulated by national law or collective agreements, which continue to be the employer's responsibility.
Financially, the EGF continues to be a particularly attractive instrument for businesses involved in restructuring processes. The European Union finances up to 85% of the total cost of approved interventions, while the remaining 15% is borne by the Regions, Autonomous Provinces, or the company itself in the case of workers affected by imminent redundancies. For this particular category, a maximum limit of four million euros per company is also set.
Particular attention must also be paid to procedural timelines. For workers at risk of redundancy, the company must submit the application to the Managing Authority within fourteen weeks of the first official communication of the collective redundancy procedure. Subsequently, the Authority verifies the fulfillment of the required conditions, the sustainability of the project, and the correctness of the package of measures before transmitting the application to the European Commission.
Once the application is received, the Commission has fifty working days to conduct its assessment. After the decision to mobilize the Fund, all funded activities must be completed within twenty-four months and properly accounted for within the stipulated deadlines, otherwise the contribution will be forfeited.
The new provisions also strengthen the monitoring system for interventions, including checks even after the completion of projects to evaluate the actual re-employment of workers and the impact of the funded measures.
The changes introduced by Regulation (EU) 2026/1139 confirm the European Union's commitment to making the European Globalisation Adjustment Fund an increasingly effective tool in managing large-scale corporate restructuring. For businesses facing reorganization processes, understanding the new rules and planning procedures promptly can represent a significant opportunity to support workers through redeployment pathways, benefiting from the resources made available by the European Union while simultaneously reducing the social impact of corporate crises.