The EGF is the European Globalisation Adjustment Fund, which helps workers made redundant as a result of major restructuring, relocation of production, automation, or major changes in the market. It finances individualised assistance – retraining, counselling, support in job-seeking, contributions towards starting a business and towards mobility – but not wage compensation or the rescue of the enterprise itself. It is activated at the request of a member state once a set number of redundancies in a single enterprise, sector or region is exceeded. For a region affected by the closure of a large employer, it represents an additional source beyond the usual employment-policy instruments. Implementation is usually entrusted to the labour office in cooperation with the local government. The employer does not apply for the assistance itself, but can inform employees being made redundant of the possibility and cooperate in its preparation. The assistance is time-limited and tied to a specific group of redundant workers.
See also: Kurzarbeit, Employment contribution from the Labour Office, Just Transition Fund (JTF).
