European Globalisation Adjustment Fund for Displaced Workers

The European Globalisation Adjustment Fund for Displaced Workers (EGF) is a EU fund that has been introduced to express solidarity with workers or the self-employed who have been displaced due to major restructuring. The fund is a crisis fund to help displaced workers find new jobs quickly.

In the event of large-scale restructuring

The EGF can be mobilised for large-scale restructuring events, regardless of cause, for example during the coronavirus crisis, digitalisation, automation, the transition to a low-carbon economy or other major changes.

The main rule is that EGF helps out when more than 200 employees are made redundant from a single company or from several smaller companies in different industries. The fund has an annual budget of EUR 210 million for 2021–2027 and can cover 60 per cent of the costs.

Arbetsförmedlingen is the administrative agency for the fund. A special role is appointed and responsible for the application process, following up and monitoring ongoing projects and submitting a final report to the European Commission and the Government Offices of Sweden.

Read more about the EGF on the European Commission website:

European Globalisation Adjustment Fund for Displaced Workers (EGF) (europa.eu) (in Swedish)

Ongoing EGF project

EGF Northvolt

Questions and answers

What is the application process?

Arbetsförmedlingen applies for financing on behalf of the Government. The European Commission home page lists the contact persons for the EGF.

Contact persons in the EU member states (europa.eu) (in Swedish)

The assignment is preceded by local, regional and national dialogues between the social partners, the business community and organisations. Arbetsförmedlingen collects information about the

redundancies together with the actors, maintains a dialogue with the Ministry of Employment and the European Commission and ensures that the criteria are fulfilled ahead of an application.

One of these criteria must be fulfilled

  • At least 200 people made redundant within a period of four months within one company including suppliers and producers in the supply chain.
  • At least 200 people made redundant within a six-month period in the same sector according to NACE 2 *, located in one or two NUTS 2 ** regions adjacent to one another.
  • At least 200 people made redundant within a four-month period in the same or different sectors according to NACE 2, located in one NUTS 2 region.

The calculation is performed using different methods

  • Date when the employer reports the planned redundancies in writing to the government agency concerned (Arbetsförmedlingen).
  • Date when the employer gave the individual employee notice of redundancy.
  • The date of the de facto termination of the contract of employment.
  • The date when the placement end at the company. For a self-employed person, the date of cessation of activities.

*NACE 2 is the EU’s statistical classification of economic activities.

**NUTS 2 is the regional division used within the EU for reporting statistics.

European Commission about NACE (ec.europa.eu)

Read about how to apply on the European Commission website:

Application and questions and answers about EGF (europa.eu) (in Swedish)

Who is entitled to support?

The support is targeted at individual employees, the self-employed, temporary employees and fixed-term workers who have been made redundant within the specific project described in the application.

The money from the fund is individually adapted and may not be used to keep companies running or to help with modernisation or restructuring.

How can the EGF help?

The support is provided in the form of a coordinated package with measures customised for individuals where the need for training and the level of the education should be adapted to each aid recipient’s qualifications and skills.

The structure of the coordinated package has to take into consideration future labour market outlooks and skills requirements and has to complement Arbetsförmedlingen’s regular programmes.

  • Bespoke training and retraining, including information and communication technology and other skills required in the digital era.
  • Validation of knowledge and skills.
  • Individual job coaching services and targeted group activities.
  • Vocational guidance, counselling, mentorship.
  • Reorientation support.
  • Measures that promote entrepreneurship, support for self-employment, creation of new companies, employees taking over companies and cooperative activities.
  • Special temporary measures such as jobseeker’s allowance, recruitment incentive for employers, resettlement allowance, child care allowance, training allowance, daily allowance and allowance to carers.

Read about how to apply on the European Commission website:

Application and questions and answers about EGF (europa.eu)

Our completed projects

The project took place between August 2017 and August 2019 for the 2,388 people who were made redundant following staff reductions at Ericsson’s facilities in Kumla, Kista, Borås, Gothenburg, Karlskrona and Linköping in 2016.

The project took place between March 2016 and March 2018 for the 1,556 people who were made redundant from the manufacturing of telecommunications equipment at Ericsson’s facilities in Katrineholm, Kumla, Kista, Borås, Gothenburg, Karlskrona and Linköping.

The project took place between September 2015 and September 2017 for the 647 people who were made redundant due to a reorganisation at Volvo Group Truck Operation EMEA and its subcontractors. Most of the affected individuals were employed in Umeå, with additional redundancies in Gothenburg and Eskilstuna.

The project took place between May 2012 and May 2014 for the 3,738 people who were made redundant in Trollhättan due to the bankruptcy of Saab Automobile AB.

The project took place between December 2011 and December 2013 for the 750 people who were made redundant following the closure of AstraZeneca’s facilities in Lund and Umeå in 2011.

The project took place between December 2008 and December 2011 for the 3,126 people who were made redundant from Volvo Cars AB and its subcontractors.

Contact

Arbetsförmedlingen is the administrative authority for the EGF and is responsible for coordination and submitting applications to the European Commission. The role is also responsible for inspecting and following up ongoing projects and for submitting a final report to the European Commission.

Internationella@arbetsformedingen.se

Co-funded by the European Union, logo