Is there child benefit for secondment?

Since 2023, the German Family Benefits Office no longer pays child benefit for posted workers. A posting exists if an employee works for a company that is based in Romania, for example, and the employee carries out the work in another member state, e.g. Germany. The Family Benefits Office refers to a provision in European law which stipulates that the law of the state in which the employer is established applies in the case of a posting (Art. 12 of Regulation (EC) No. 8003/2004). According to this regulation, in principle no child benefit can be paid if an employee is posted.

However, UnionTax is of the opinion that the family benefits office misinterprets European law in most cases and is therefore taking legal action against the decisions. The European Commission has defined clear rules as to which national law applies in the case of a posting. For example, the European Commission has stipulated that the law of the country in which the work is carried out (e.g. Germany) applies if the employee has not paid social security contributions in the country from which the posting takes place prior to the posting[1].

Here is an example:

An employee was posted to Germany from February to December 2023. The company is based in Romania. Before the start of the posting, the employee did not pay any social security contributions in Romania because he had not previously carried out any work activities. He therefore did not pay any social security contributions in Romania in January 2023. In the opinion of the European Commission, the employee in this case is subject to the legal provisions in Germany and must therefore also receive German child benefit. Only if the employee was already subject to compulsory social insurance in Romania before the posting began will Romanian legislation continue to apply. In this case, Germany does not actually have to pay child benefit.

It is therefore important that child benefit applications are submitted even if a posting exists or existed. Otherwise you may lose your entitlements and therefore a lot of money. UnionTax safeguards all claims of posted employees until a final decision has been made by the court. UnionTax conducts the proceedings through lawyers authorised in Germany. If necessary, the legal issue will be pursued all the way to the European Court of Justice – everything to secure and enforce your claims. You too can rely on the expertise and competence of UnionTax. Your claims are in good hands here.

[1] Practical guide: The legislation that applies to workers in the European Union, the European Economic Area and Switzerland