Reimbursement of Overpaid Loss of Earnings Compensation by the Employer

Facts

The Compensation Fund of the Canton of Zurich demanded that A. AG reimburse the overpaid loss of earnings compensation for an employee who had performed civilian service. The Social Insurance Court of the Canton of Zurich overturned the Compensation Fund's objection decision, whereupon the latter filed an appeal with the Federal Supreme Court.

Considerations

The Federal Supreme Court decided that the employer, who pays the employee's salary during the period of service, does not act merely as a paying agent, but has its own rights and obligations arising from the performance relationship. Pursuant to Art. 19 para. 2 ATSG, the employer is entitled to claims for loss of earnings compensation to the extent that it has paid the salary.

Consequently, A. AG is obliged to reimburse the amount of loss of earnings…