The law of 3 March 2026 strengthens the legal framework for job protection plans, clarifies their approval criteria and introduces the terms and conditions to benefit from Employment Fund co-funding for training covered by the plans.
The legal framework for job protection plans has recently been amended following the Parliamentary vote on bill of law 8153. The new law of 3 March 2026,[1] published on 9 March 2026 (Law), is one element of the government’s job protection policy, which aims to strengthen the preventative nature of measures intended to avoid layoffs and redundancy plans by means of alternative solutions.
The key amendments introduced by the Law are summarised below:
- Context and objectives
The social partners (i.e. staff and employer representatives) may initiate discussions with a view to creating a job protection plan when they suspect that economic or financial difficulties are likely to affect jobs. The Economic Committee (Ministry of the Economy) may also invite the parties to negotiate this type of plan, the aim of which is to anticipate the effects of restructuring, protect jobs, avoid layoffs or redundancy plans and promote alternative solutions allowing affected employees to avoid unemployment or better organise their career transition.
The government supports these agreements with financial support for training, retraining, consulting, temporary loan of labour, early retirement and hiring. The plan must be approved by the Labour Minister as the financial support is granted by the Employment Fund.
Furthermore, the Law establishes a monitoring system that makes it possible to assess a business’ situation, in order to clarify the co-funding by the Employment Fund and strengthen the preventative nature of planned measures.
2. Reinforced obligations to provide information
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New reporting obligation:the Economic Committee is now able to ask social partners that have signed a job protection plan for information on the plan’s implementation.
The social partners are required to provide all information requested about the measures set out in the plan that are effectively in place, the number of people affected by each of the measures, their own funds invested in implementation of the measures and the use of the financial support or grants received. - Deadlines and sanctions: this information must be submitted to the secretariat of the Economic Committee within one month of receiving the request. If the social partners provide information that is deliberately false or refuse to provide the requested information, the Labour Minister may, on the advice of the Economic Committee, revoke the approval granted.
3. Co-funding of training by the Employment Fund
- Co-funding rate: the Employment Fund finances up to 50% of the actual costs of training if the training is for a new internal position with the same employer and up to 100% if it is for a new external position with another employer. However, only certain costs are eligible.
- Excluded training: training courses exceeding 480 hours or EUR 20,000 and courses already funded or part-funded under other statutory training provisions are excluded from co-funding.
- Allocation of costs in the event of termination: different rules apply depending on the type of termination (with notice or with immediate effect).
4. Process for requesting co-funding
- Mandatory advance request and supporting documents: for a co-funding request to be valid, it must be submitted by the employer to the Labour Minister before the effective start of the training, which must be delivered by an eligible training body. The employer must attach the required supporting documents providing details on the training to their request.
- Request for reimbursement:the employer must send the request for reimbursement to the Labour Minister. The request must include the relevant supporting documents and must be sent within 40 days from the last day of the training for which the funding is requested.
5. Practical recommendations
Businesses intending to put in place a job protection plan should:
- Anticipate the need to collect information that may be requested by the Economic Committee.
- Prepare the necessary documentation before the start of any training.
- Comply with the strict deadlines of one month to provide the information and 40 days for the reimbursement request.
- Check the eligibility of training (duration, cost, training body, etc.)
- Keep all proof of attendance and completion.
The Law enters into force on 10 March 2026.
