The Estonian application in November 2020 was based on 10,080 redundancies across 14 NACE/ economic sectors due to the COVID-19 pandemic. It was approved under the 2014-20 EGF Rules on an exceptional basis due to the serious impact these job losses had on employment and the national economy. The mass redundancies in the Estonian tourism industry were argued to impact the national economy. The unemployment rate in Estonia increased from 4.4% in 2019 to 6.8% in 2020.
By comparison the unemployment rate in Ireland increased from 5% to 5.7% in the same period reflecting the range of measures introduced by the Government to provide income support for those whose employment has been affected due to the COVID-19 pandemic in Ireland.
The Regulations governing the EGF for 2021-27 reduce the minimum required number of redundancies from 500 to 200 redundancies. The 200 redundancies can occur over a four month period in a single company (including suppliers /downstream producers) or in a number of companies, particularly SMEs operating in the same or different economic sectors in a particular NUTS 2 region; or over a six-month period in a number of companies, particularly SMEs operating in a particular economic sector in one or two adjoining NUTS 2 regions. Temporary lay-offs do not constitute redundancies within the scope of the EGF.
All reasons for restructuring are now eligible for support, including the economic effects of the coronavirus crisis and larger economic trends such as decarbonisation and automation. Job losses arising from changing trade patterns or as a consequence of the financial and economic crisis for which workers can currently receive support, also continue to be eligible. Cases can continue to be approved in exceptional circumstances, where the redundancies will have a serious impact on employment and the local, regional or national economy, up to 15% of the maximum annual EGF budget of €186m.
My officials in the EGF Managing Authority monitor the number and timing of redundancies notified by employers to the Minister of the Department of Enterprise, Trade and Employment, to assess the potential for EGF applications.
Separately my Department has a Job Loss Response Protocol with the Departments of Social Protection and Enterprise, Trade and Employment. In a situation of job losses and redundancies, the Department of Social Protection is the lead Department. The protocol puts in place all the efforts to assist the impacted workers, including welfare entitlements, job-search assistance and access to the wide range of upskilling and reskilling opportunities available.
