Article 1

Regulation (EU) 2021/691 is amended as follows: (1) in Article 1, paragraph 2 is replaced by the following: 2. In accordance with Article 4, the EGF shall offer support to displaced workers and self-employed persons whose activity has ceased in the course of major restructuring events and to workers affected by imminent job displacement in enterprises undergoing restructuring. ; (2) Article 2 is replaced by the following: Article 2 Mission and objectives 1. The EGF shall support socioeconomic transformations that are the result of globalisation and of technological and environmental changes by helping displaced workers and self-employed persons whose activity has ceased to adapt to structural change. The EGF shall also support workers at risk of imminent job displacement. The EGF shall constitute an emergency fund that operates reactively. As such, the EGF shall contribute to the implementation of the principles set out in the European Pillar of Social Rights, promote sustainable employment and enhance social and economic cohesion among regions and Member States. 2. The objectives of the EGF are to demonstrate solidarity and promote decent and sustainable employment in the Union by offering assistance in the case of major restructuring events, in particular those caused by challenges related to globalisation, such as changes in world trade patterns, trade disputes, significant changes in the trade relations of the Union or the composition of the internal market and financial or economic crises, as well as the transition to a low-carbon economy as part of the twin green and just transition, or as a consequence of digitisation or automation. The EGF shall support beneficiaries in returning to decent and sustainable employment as soon as possible. Particular emphasis shall be placed on measures that help the most disadvantaged groups. The EGF shall also support workers affected by imminent job displacement in acquiring the skills needed to help them transfer either to a different role within their current enterprise or to a different enterprise. ; (3) Article 3 is amended as follows: (a) the following point is inserted: (1a) worker affected by imminent job displacement means a worker in an enterprise undergoing restructuring whose employment contract or relationship, regardless of its type or duration, is expected to be ended by redundancy following a written communication from the employer to the workers’ representatives informing them, during the course of consultations, of, inter alia, the number and categories of workers to be made redundant in accordance with Article 2(3), point (b), of Directive 98/59/EC; ; (b) the following point is added: (6) enterprise undergoing restructuring means an enterprise undergoing a process that involves collective redundancies, as defined in Article 1(1), point (a), of Directive 98/59/EC; ; (4) Article 4 is amended as follows: (a) paragraph 1 is replaced by the following: 1. Member States may apply for financial contributions from the EGF for measures targeting displaced workers and self-employed persons in accordance with the provisions laid down in this Article. In the event of requests from enterprises undergoing restructuring concerning measures targeting workers affected by imminent job displacement, Member States shall apply for financial contributions from the EGF. ; (b) in paragraph 2, the following point is added: (d) the existence of projected collective redundancies concerning at least 200 workers affected by imminent job displacement in a single enterprise undergoing restructuring in a single Member State. ; (c) paragraph 3 is replaced by the following: 3. In small labour markets, in duly substantiated cases, and in particular with regard to applications involving SMEs, an application for a financial contribution under this Article shall be deemed to be admissible even if some of the criteria set out in the circumstances listed in paragraph 2 are not entirely met, provided that the redundancies or projected collective redundancies have a serious impact on employment and the local, regional or national economy. For applications under Article 8, the Member State shall duly substantiate the application, and shall indicate which of the criteria set out in the circumstances listed in paragraph 2 of this Article are not entirely met. For applications under Article 8a, following a duly substantiated request from the enterprise, including the indication of the criteria set out in the circumstances listed in paragraph 2 of this Article which are not entirely met, the Member State shall submit the application. ; (d) paragraph 4 is replaced by the following: 4. In exceptional circumstances, and in particular with regard to applications involving SMEs, paragraph 3 shall also apply to labour markets other than small labour markets. The aggregated amount of financial contributions in such cases shall not exceed 15 % of the annual ceiling of the EGF. ; (5) in Article 5, first paragraph, the introductory part is replaced by the following: The applicant Member State shall specify the method used for calculating the number of displaced workers and self-employed persons whose activity has ceased for the purposes of Article 4 as at one or more of the following dates: ; (6) the following article is inserted: Article 5a Communication of the number of workers affected by imminent job displacement For the purposes of Article 4 of this Regulation, the applicant Member State shall communicate to the Commission the number of workers affected by imminent job displacement who have been identified in one or more written communications from the employer to the workers’ representatives in accordance with Article 2(3), second subparagraph, of Directive 98/59/EC. ; (7) Article 6 is amended as follows: (a) in the first paragraph, the following point is added: (c) workers affected by imminent job displacement in an enterprise undergoing restructuring, including, where applicable, in the direct suppliers or downstream producers of that enterprise; ; (b) the following paragraphs are added: The workers referred to in point (c) of the first paragraph shall remain eligible as part of the workers affected by imminent job displacement even if their employment contract or relationship has ended. Only restructuring events, including, where applicable, restructuring events in the direct suppliers and downstream producers of an enterprise undergoing restructuring, that qualify as collective redundancies under Directive 98/59/EC shall be eligible. Workers referred to in point (c) of the first paragraph shall be eligible regardless of the support measures provided by the Member State concerned and financed exclusively from its resources, provided that those measures are not part of the coordinated package. The workers referred to in point (c) of the first paragraph shall be considered to be eligible beneficiaries if they are identified in the written communications referred to in Article 5a concerning imminent job displacements or in subsequent written communications of additional projected collective redundancies in the requesting enterprise or in its direct suppliers or downstream producers, where applicable, provided that the relevant information is communicated by the last day before the date of the completion of the assessment by the Commission. The workers of direct suppliers and downstream producers referred to in point (c), of the first paragraph shall be considered to be eligible beneficiaries, provided that: (a) they are part of projected collective redundancies taking place within the same Member State as the projected collective redundancies by the requesting enterprise; and (b) a clear causal link is established between the projected collective redundancies by the requesting enterprise and the projected collective redundancies in its direct suppliers or downstream producers. ; (8) Article 7 is amended as follows: (a) paragraph 1 is replaced by the following: 1. A financial contribution from the EGF may be made for active labour market policy measures that form part of a coordinated package, designed to facilitate the reintegration of the targeted beneficiaries, in particular the most disadvantaged among them, into employment or self-employment, or to help the workers referred to in Article 6, first paragraph, point (c), update or acquire the skills they need to transfer either to a different role with their current enterprise or to a different enterprise. ; (b) paragraph 2 is amended as follows: (i) in the second subparagraph, the following point is added: (c) for the beneficiaries referred to in Article 6, first paragraph, point (c), the coordinated package may include training and retraining, complementing existing forms of support available under national measures or requirements under collective agreements, tailored to the individual worker’s needs, including on skills required for a resource-efficient and sustainable economy, information and communication technology and other skills required in the digital age, certification of acquired knowledge and skills, individual job-search assistance services and targeted group activities, occupational guidance, advisory services, mentoring, outplacement assistance, entrepreneurship promotion and cooperation activities. ; (ii) the following subparagraph is inserted after the third subparagraph: The coordinated package shall not include short-time work schemes, allowances or start-up grants. ; (9) Article 8 is amended as follows: (a) the heading is replaced by the following: Article 8 Applications for EGF assistance for displaced workers and self-employed persons whose activity has ceased ; (b) in paragraph 7, point (l) is replaced by the following: (l) a statement outlining why the coordinated package does not replace measures that are the responsibility of employers by virtue of national law or collective agreements; ; (10) the following article is inserted: Article 8a Applications for EGF assistance for workers affected by imminent job displacement 1. Enterprises undergoing restructuring may request the Member State concerned to submit an application for a financial contribution from the EGF if the intervention criteria set out in Article 4(2), point (d), are met, and if the enterprise wishes to offer EGF-co-financed assistance for workers affected by imminent job displacement, in accordance with Article 6, first paragraph, point (c), for the entire implementation period. Such a request may be submitted by the enterprise within 14 weeks from the date on which it forwarded to the competent public authority, in accordance with Article 2(3), second subparagraph, of Directive 98/59/EC, the first written communication to the workers’ representatives containing, inter alia, the number and categories of workers to be made redundant. 2. A requesting enterprise may agree to include in its request workers affected by imminent job displacement in its direct suppliers and downstream producers who are eligible in accordance with Article 6, first paragraph, point (c), provided that all collective redundancies covered by the request, regardless of whether in the requesting enterprise, or in its direct suppliers or downstream producers, take place within the same Member State. A requesting enterprise that agrees to include in its request workers affected by imminent job displacement in its direct suppliers or downstream producers in accordance with the first subparagraph shall remain fully responsible under this Regulation for the request. In particular, it shall continue to have full responsibility for: (a) the submission of the request; (b) the provision of all the necessary information to the Member States; (c) the provision of the national co-financing; and (d) the implementation of the coordinated package. The requesting enterprise may arrange to receive financial contributions from its direct suppliers and downstream producers in proportion to the support received by their workers. 3. For the purposes of this Article, the Commission shall provide non-binding guidelines, checklists and templates for request forms in coordination with Member States. The Member States may decide to make such templates mandatory for the submission of requests. Member States shall publish online guidelines and templates to support the enterprises in preparing their requests. The information to be provided by the enterprise through the templates referred to in the first subparagraph of this paragraph shall cover all the information necessary for an application for a financial contribution from the EGF, in accordance with paragraph 12. 4. Member States shall submit their applications on the basis of the requests referred to in paragraph 1. Without prejudice to the Commission’s independent assessment of the application for a financial contribution from the EGF in accordance with paragraph 11, the applicant Member State may carry out ex ante checks to verify: (a) the requesting enterprise’s financial and administrative capacity to implement the financial contribution from the EGF for the workers affected by imminent job displacement concerned; (b) the information provided in accordance with paragraph 12, points (g), (k) and (o); (c) whether the coordinated package is expected to be carried out in accordance with national law; and (d) whether there are financial risks for the applicant Member State, including potentially fraudulent activity and the risk of double funding. Where they carry out such ex ante checks, Member States shall communicate the results thereof, together with their assessment of the request submitted by the enterprise, when submitting the application to the Commission. The Commission shall take that information into account in its assessment of the application. If the Commission’s assessment differs from the results of the ex ante checks, the Commission shall include explanations in that regard in the summary of information referred to in Article 15(3), point (a). 5. Member States shall treat all requests equally and deal with them in the order that they receive them, without exercising any discretion with regard to their admissibility or eligibility and shall submit applications in respect of those requests to the Commission. Member States shall not introduce any additional requirements or alter the requirements set out in this Regulation. 6. The applicant Member State shall submit to the Commission the application for a financial contribution from the EGF within 15 working days of the date on which it received the complete request. 7. If requested to do so by the enterprise, the Member State concerned shall provide guidance throughout the procedure for a request as referred to in paragraph 1, taking into account the size and the administrative capacity of the enterprise. 8. If requested to do so by the applicant Member State, the Commission shall provide guidance throughout the application procedure. 9. Within 10 working days of the date of submission of the application, or, where applicable, within 10 working days of the date on which the Commission is in possession of a translation of the application, whichever is the later, the Commission shall acknowledge receipt of the application, and shall request from the applicant Member State any additional information that it requires in order to assess the application. If the requested additional information includes information that can be provided by the enterprise, the enterprise shall provide that information to the Member State. 10. Where the Commission requests additional information pursuant to paragraph 9, the Member State shall reply within 15 working days of the date of the request. The Commission shall extend that deadline by 10 working days at the request of the applicant Member State. Any request for extension shall be duly substantiated. 11. On the basis of the information provided in the application, the Commission shall complete its assessment of the compliance of the application with the conditions for providing a financial contribution within 50 working days of the receipt of the complete application or, where applicable, of the translation of the application. The Commission shall evaluate the information provided in accordance with paragraph 12. In its evaluation, the Commission shall also assess the adequacy of the consultation process referred to in Article 7(4), as well as of the coordinated package. Where the Commission is not able to meet that deadline, it shall inform the applicant Member State before that deadline, explaining the reasons for the delay and setting a new date for the completion of its assessment. That new date shall be no later than 20 working days after the deadline laid down in the first subparagraph. 12. An application shall contain the following information: (a) the identification of the requesting enterprise, including, where applicable, its affected direct suppliers and downstream producers; (b) the number of workers affected by imminent job displacement in the requesting enterprise undergoing restructuring, in accordance with Article 5a; (c) the number of eligible beneficiaries referred to in Article 6, first paragraph, point (c), and the number of targeted beneficiaries among them to benefit, in accordance with the intentions of the requesting enterprise, under measures from the coordinated package; (d) where applicable, and as soon as it is available, any written agreement between the requesting enterprise and its direct suppliers or downstream producers; (e) a brief description of the events that led to the restructuring; (f) where the application includes workers affected by imminent job displacement in the direct suppliers or downstream producers of the requesting enterprise, a reasoned analysis provided by the requesting enterprise establishing a clear causal link between the projected collective redundancies in the direct suppliers or downstream producers and those in the requesting enterprise; (g) a confirmation, based on information provided by the enterprise, that the enterprise has complied, and continues to comply, with its legal obligations, including those set out in Article 2 of Directive 98/59/EC, and any collective agreements governing these projected collective redundancies and that it is providing for its workers accordingly; (h) a description of the procedures followed by the enterprise for the consultation of the targeted beneficiaries or their representatives, as applicable, on the design of the coordinated package, as well as the description of the procedures followed for the consultation on the measures included in the coordinated package of the local and regional authorities or other relevant stakeholders, as applicable; (i) an explanation of the extent to which the recommendations set out in the EU Quality Framework for anticipation of change and restructuring have been taken into account and, where applicable, how the coordinated package complements actions funded by other Union or national funds; (j) an estimated breakdown of the composition of the targeted beneficiaries by gender, age group and educational level, used in the design of the coordinated package; (k) a detailed description of the coordinated package and related expenditure, including any measures in support of employment initiatives for disadvantaged, young and older beneficiaries; (l) the estimated budget for each of the components of the coordinated package in support of the targeted beneficiaries; (m) the dates on which the provision of the coordinated package to the targeted beneficiaries and the activities to implement the EGF, as set out in Article 7, were started or are due to be started; (n) the estimated budget for any preparatory activities, including ex ante checks, as well as management, information and publicity, control and reporting activities by the applicant Member State in relation to the application; (o) a statement outlining why the coordinated package does not replace measures that are the responsibility of employers by virtue of national law or collective agreements; (p) the confirmation from the enterprise concerned that it will co-finance the measures of the coordinated package and that its co-financing is the only source for the national co-funding , except for any contributions from the direct suppliers or downstream producers of that enterprise; (q) a confirmation from the applicant Member State that it has not provided any funding for the coordinated package. Where the numbers referred to in points (c) and (l) of the first subparagraph change before the completion of the assessment by the Commission, those changes shall be communicated to the Commission. The information set out in points (a) to (f), (j) to (m), and (o) and (p) of the first subparagraph shall be provided to the applicant Member State by the requesting enterprise. ; (11) Article 11 is amended as follows: (a) paragraph 1 is replaced by the following: 1. At the initiative of the Commission, a maximum of 1,5 % of the maximum annual amount of the EGF may be used for technical and administrative expenditure for its implementation, such as preparatory, monitoring, control, audit and evaluation activities, as well as data gathering, including in relation to corporate information technology systems, communication activities and those enhancing the EGF’s visibility as a fund or for specific projects and other technical assistance measures. Such measures may cover future and previous programming periods. ; (b) paragraph 4 is replaced by the following: 4. The Commission’s technical assistance shall include the provision of information and guidance to the Member States on using, monitoring and evaluating the EGF as well as dedicated outreach to Member States that have had no or have had only low uptake of EGF support. The Commission shall also provide the social partners at Union and national level with information and clear guidance on the use of the EGF. Guidance measures may also include the creation of taskforces in cases of severe economic disruptions in a Member State. ; (12) Article 13 is amended as follows: (a) paragraph 1 is replaced by the following: 1. On the basis of the assessment carried out in accordance with Article 8 or 8a, in particular taking into account the number of targeted beneficiaries, the proposed measures and the estimated costs, the Commission shall evaluate and determine the amount of a financial contribution from the EGF, if any, that may be made within the limits of the resources available. ; (b) the following paragraph is inserted: 2a. The co-financing rate for expenditure incurred by the Member State for beneficiaries referred to in Article 6, first paragraph, point (c), and relating to measures set out in Article 7(5) shall be 100 %. ; (c) paragraph 3 is replaced by the following: 3. Where, on the basis of the assessment carried out in accordance with Article 8 or 8a, the Commission concludes that the conditions for a financial contribution under this Regulation are met, it shall immediately initiate the procedure set out in Article 15. ; (d) the following paragraph is added: 5. A minimum of 40 % of the annual maximum amount of the EGF shall be reserved for applications concerning the cessation of activity of displaced workers or self-employed persons referred to in Article 8. Any portion of that amount not used or not reserved by 30 June of each year may also be used for applications concerning workers affected by imminent job displacement referred to in Article 8a. Any financial contribution to workers affected by the imminent job displacement referred to in Article 4(2), point (d), shall not exceed EUR 4000000 per enterprise, per Member State, for any financial year. ; (13) in Article 14, paragraphs 1 and 2 are replaced by the following: 1. Expenditure shall be eligible for a financial contribution from the EGF from the dates set out in the application in accordance with Article 8(7), point (j), or Article 8a(12), point (m), on which the Member State or the enterprise concerned starts, or is due to start, providing the coordinated package to the targeted beneficiaries or on which the Member State incurs administrative expenditure to implement the EGF in accordance with Article 7(1) and (5). 2. The Member State or the enterprise shall start implementing the eligible measures set out in Article 7 without undue delay and shall carry out those measures as soon as possible, and in any event within 24 months of the date of entry into force of the decision on the financial contribution. ; (14) in Article 15, paragraph 3 is replaced by the following: 3. A proposal by the Commission for a decision to mobilise the EGF pursuant to paragraph 1 shall include the following: (a) the assessment carried out in accordance with Article 8(6) or Article 8a(11), together with a summary of the information on which that assessment is based; and (b) the reasons for the amounts proposed in accordance with Article 13(1). ; (15) Article 16 is replaced by the following: Article 16 Insufficient funds By way of derogation from the deadlines set out in Articles 8, 8a and 15, provided that the remaining commitment appropriations available in the EGF are not sufficient to cover the amount of assistance that is necessary according to the Commission proposal, the Commission may, in exceptional cases, postpone the proposal to mobilise the EGF and the subsequent budgetary transfer request until commitment appropriations are available in the year following the application. The annual budgetary ceiling of the EGF shall be respected in all circumstances. ; (16) in Article 17, the following paragraph is added: 6. With regard to applications under Article 8a, the Member State concerned, without undue delay, and at the latest ten working days after receipt of the Commission’s pre-financing payment, shall make available to the enterprise concerned the part of the pre-financing payment that relates to the coordinated package implemented by the enterprise. Member States may make the pre-financing payment available in instalments, in which case the first instalment shall be made available without undue delay and within ten working days at the latest. The detailed arrangements for payment shall be set out in the document governing the financial contribution from the Member State to the enterprise. The Member States may, where appropriate, direct the funds to the enterprise through the relevant regional or other public authority, provided that this does not delay the payment. The Member State shall retain or direct to regional or other public authority the part of the pre-financing that relates to measures referred to in Article 7(5). ; (17) in Article 20, the following paragraph is added: 3. In cases where an enterprise is implementing a financial contribution from the EGF for workers affected by imminent job displacement, the enterprise shall, by the end of the sixth month after the expiry of the implementation period, provide the Member State concerned with all relevant information specified in paragraph 1. ; (18) in Article 22, paragraphs 4 and 5 are replaced by the following: 4. A beneficiary survey shall be launched by the Commission during the sixth month after the end of each implementation period. The beneficiary survey shall be open to participation for at least four weeks. Member States shall distribute the beneficiary survey to the beneficiaries, send out at least one reminder and inform the Commission of the distribution and reminder sent. In cases involving assistance implemented by an enterprise for beneficiaries under Article 6, first paragraph, point (c), that enterprise is responsible for distributing the survey referred to in the first subparagraph of this paragraph to the beneficiaries that have participated in the measures, and to workers’ representatives for information, for sending out at least one reminder and for informing the Member State of the distribution and reminder sent. The responses to the beneficiary surveys shall be collated and analysed by the Commission for use in future evaluations. 5. Beneficiary surveys shall be used to collect data on the perceived change in the employability of beneficiaries, or, for those who have already found employment, on the quality of the employment found, such as changes in working hours, the type of employment contract or relationship (full time or part time; fixed term or open-ended), the level of responsibility or change of salary level in comparison to previous employment, and the sector in which the person found employment. For cases under Article 6, first paragraph, point (c), this shall also include information on a possible new role within the same enterprise, where applicable. That information shall be broken down by gender, age group, education level and level of professional experience. ; (19) in Annex II, point (2), the following paragraph is inserted after the first paragraph: For cases under Article 6, first paragraph, point (c), the indicator under the first paragraph, point (a), of this point is to be broken down by the following employment: (a) in a different enterprise; (b) in the same enterprise: (i) in the same role; (ii) in a different role..