Facts

Indian national [D.] has been employed by X. AG in Switzerland since 1 August 2008. His three children live with their mother in India. The Family Compensation Fund Zug (FAK) initially granted him family allowances, but rejected the claim as of 1 January 2009, as according to the Federal Act on Family Allowances (FamZG), family allowances are only paid for children residing in a foreign state if this is prescribed in an international agreement, which is not the case for India. [D.] filed a complaint against this decision.

Considerations

The Federal Supreme Court dismissed the complaint. It stated that Art. 4 para. 3 FamZG grants the Federal Council the competence to regulate the requirements for the entitlement to family allowances for children residing abroad. Art. 7 para. 1 FAO, which excludes the entitlement to family allowances for children residing in states without a social security agreement, is within the scope of this…