European Globalization Adjustment Fund (EGF)

The European Globalization Adjustment Fund (EGF) is an EU fund designed to support workers who have been given notice or laid off due to major restructuring.

In the event of corporate restructuring

Companies undergoing restructuring may request support from the EGF for employees who have been given notice. The aim is to provide those affected with opportunities to develop and acquire new skills to avoid layoffs and facilitate a smooth transition to new employment within the same or another company.

The EGF is intended to complement existing national measures and collective agreements and covers 60 percent of the costs. The main requirement for applying is that at least 200 people have been laid off from a company.

European Globalization Adjustment Fund (EGF) for Displaced workers (europa.eu)

The Application Process

 The company applies for support from the EGF through Arbetsförmedlingen. The application must be submitted no later than 14 weeks after the layoff notice has been filed.

Contact the Swedish Public Employment Service to obtain application documents:

EGF Sweden (Arbetsförmedlingen)

Once Arbetsförmedlingen has verified that the application is complete, it is forwarded to the European Commission within 15 working days. The European Commission then makes a decision on funding.

  • Information about the applicant company and, in certain cases, its affected direct subcontractors and downstream producers.
  • The number of workers expected to be laid off in the near future at the applicant company undergoing restructuring.
  • The number of eligible beneficiaries and the number of affected beneficiaries among those whom the applicant company intends to include in the measures of the coordinated package.
  • Where applicable, and as soon as available, a written agreement between the applicant company and its direct subcontractors and downstream producers.
  • A brief description of the events leading to the restructuring.
  • If the application covers workers who are expected to be laid off shortly by the applicant company’s direct subcontractors or downstream producers, an explanatory analysis from the applicant company establishing a clear causal link between the planned collective redundancies carried out by the direct subcontractors and downstream producers.
  • A confirmation from the company that it complies with its legal obligations and any collective agreements governing the planned layoffs and that it is taking appropriate measures regarding its employees.
  • A description of the procedures the company applies to consult with the affected grant recipients or their representatives, as applicable, regarding the design of the coordinated package, as well as a description of the procedures it applies to consult on the measures in the coordinated package with local and regional authorities or other relevant parties, as applicable.
  • A statement on the extent to which the company has fulfilled its obligations under Swedish law and under collective agreements, and how the coordinated package complements measures financed by other Union or national funds.
  • An estimated breakdown of the composition of the beneficiaries concerned by gender, age group, and educational level, used in the design of the coordinated package.
  • A detailed description of the coordinated package and its costs, including any measures supporting employment initiatives for disadvantaged, young, and older beneficiaries.
  • The estimated budget for each component of the coordinated package supporting the beneficiaries concerned.
  • The dates on which the provision of the coordinated package to the beneficiaries concerned and the activities of the interventions will commence.
  • An explanation of why the coordinated package does not replace measures that employers are required to take under national law or collective agreements.
  • A confirmation from the company concerned that it will co-finance the measures in the coordinated package and that its co-financing is the sole source of national co-financing.
  • A confirmation from the applicant Member State that it has not provided any funding for the coordinated package.

  • The application must be submitted no later than 14 weeks after the notice of layoffs has been filed.
  • Arbetsförmedlingen submits the application within 15 business days.
  • The European Commission assesses and decides on the application within 21 weeks.
  • Disbursement of funding within 25 business days.
  • Projects run for up to 24 months from the date of the decision.
  • Survey sent out six weeks after project completion.
  • Final report submitted seven weeks after project completion.

The design of EGF support should be carried out in consultation with the people who have been given notice, their representatives, and the social partners. The support shall complement existing forms of national measures and collective agreements.

Support is provided to update or acquire new skills, to change career direction or role within the current or another company with the aim of avoiding redundancy.

This may, for example, involve:

  • Skills for a sustainable and resource-efficient economy.
  • IT and digital skills.
  • Certificates of knowledge and skills.
  • Individual support in job seeking and targeted group activities.
  • Career guidance, counseling, and mentoring.
  • Assistance in starting or developing a business together with others.

However, the support may not include short-time work, start-up grants, or other financial contributions.

The company bears full responsibility for submitting a complete application and providing the necessary information to Arbetsförmedlingen throughout the entire period, from the application process until the final report is submitted to the European Commission

The company must provide the 40 percent national co-financing and must have the financial and administrative capacity to implement the measures for the laid-off individuals targeted by the support.

The company must ensure that the measures within the coordinated package are implemented in accordance with national law and guarantee that there is no risk of double funding.

In the event of large-scale restructuring

The EGF can be used in the event of large-scale restructuring, regardless of the cause, such as digitalization, automation, the transition to a low-carbon economy, or other major changes.

The general rule is that the EGF provides assistance when more than 200 workers are laid off at a single company or across multiple small businesses in different sectors.

In cases of large-scale restructuring and layoffs, the government decides whether to apply for funding from the EGF. In these cases, Arbetsförmedlingen receives a government decision to submit the application, implement, and manage the project.

Ongoing projects

EGF Northvolt is an EU project aimed at helping laid-off workers from Northvolt and its subcontractors in Skellefteå, Västerås, and Stockholm by providing rapid interventions that contribute to finding new jobs.

Northvolt