FEG 2026: European preventive aid for companies undergoing restructuring

Key data

If your company is undergoing restructuring or considering a collective dismissal, there is a regulatory change you need to know about now. Regulation (EU) 2026/1139, in force since May 20, 2026, amends the European Globalisation Adjustment Fund (FEG) to allow its resources to be mobilized preventively, before dismissals take effect.

Until now, the FEG —regulated by Regulation (EU) 2021/691— could only act once dismissals had occurred. This change reverses that logic: companies undergoing restructuring will be able to access support measures while workers are still on the payroll.

What does this regulation establish?

Regulation (EU) 2026/1139 introduces a structural modification in how the FEG operates. The central change is the possibility of preventive intervention: the fund no longer waits for dismissals to materialize to act.

Member States have the obligation to adapt their FEG application procedures to include these new preventive scenarios. This implies changes in national procedures for accessing the fund.

Economic and operational impact

The impact of this change is twofold: for companies and for workers.

From a business perspective, the ability to activate the FEG preventively reduces the reputational and operational cost of a collective dismissal. Accessing job placement and training measures before dismissals occur facilitates a more orderly transition and can reduce the social impact of restructurings, which is precisely the stated objective of the Regulation.

From the workers' perspective, early intervention enables faster labor reintegration, as they do not have to wait to be unemployed to access support programs.

The Regulation explicitly states that this mechanism is particularly relevant for industrial sectors undergoing digital or green transformation, where restructurings are more frequent and foreseeable with sufficient advance notice to activate preventive measures.

Who does it affect?

• Companies undergoing restructuring that are considering collective dismissals, especially in industrial sectors.
• Companies in digital transformation sectors that are redefining their operational and employment models.
• Companies in green transition sectors that are adapting their activities to sustainability and decarbonization requirements.
• Workers at risk of collective dismissal in companies undergoing restructuring, who can now access job placement and training measures before losing their jobs.
• EU Member States, which must adapt their national FEG application procedures to include the new preventive scenarios.
• Labor and HR advisors who manage restructuring processes and need to know about available European funding channels.

Practical example

A Spanish industrial company in the automotive sector initiates a restructuring process to adapt to the transition towards electric mobility. It foresees a collective dismissal affecting 200 workers over the next six months.

Under the previous framework of Regulation (EU) 2021/691, the company and workers could only access FEG resources once dismissals had occurred. The job placement and training process began when workers were already unemployed.

With the new Regulation (EU) 2026/1139, the Member State can request FEG activation preventively, while the 200 workers are still on the payroll. This allows training programs for professional transition, job guidance and job placement support to begin before dismissals occur, reducing the time workers remain unemployed and facilitating restructuring with less social impact.

For this to be possible, the corresponding Member State must have previously adapted its FEG application procedures to include this new preventive scenario.

What should companies do now?

1. Identify if your company is in a digital or green transformation sector: these are the sectors with greatest relevance for accessing preventive FEG according to the Regulation itself.
2. Review whether there is a restructuring process underway or planned: if you are considering a collective dismissal in the coming months, preventive FEG can be a transition support tool.
3. Contact the competent national body for the FEG: Member States must adapt their application procedures; consult with your country's labor authorities about what procedures are available under the new preventive scenarios.
4. Coordinate with the HR department and labor advisors: preventive FEG activation requires documenting the restructuring process and imminent dismissals with sufficient advance notice.
5. Act with anticipation: the logic of the new Regulation is precisely early intervention. The sooner the application process begins, the more time there will be for job placement and training measures to be effective before dismissals materialize.