(+84) 9 61 57 18 18
info@vietanlaw.com

Regulations on labor accident compensation in Vietnam

Occupational accidents are one of the issues that both workers and businesses are concerned about because they directly affect the health and life of workers. So what responsibility does a business have when a worker has an accident at work? In the article below, Viet An Law Firm will analyze some regulations on labor accident compensation in Vietnam to protect the rights and interests of employees and employers in the workplace.

Regulations on labor accident compensation in Vietnam

Legal basis

  • Law on Occupational Safety and Hygiene 2015;
  • Circular 28/2021/TT-BLDTBXH details and guides the implementation of several articles of the Law on Occupational Safety and Hygiene regarding regimes for workers suffering from labor accidents and occupational diseases.

What is labor accident compensation?

Labor accident compensation is a form of compensation that workers or their families receive when the worker has an accident or is injured during work. In addition to compensation, people who suffer from work accidents can also enjoy other policies from the employer such as subsidies, payment of medical expenses, and salary during treatment.

The goal of labor accident compensation regulations is to ensure that workers and their families do not have to bear the full financial burden of the consequences of work accidents. The establishment of labor accident compensation regulations aims to protect the rights of workers and create incentives for businesses to ensure a safe working environment and protect the health of workers.

The subject is responsible for compensation for occupational accidents

According to Articles 38 and 39 of the Law on Occupational Safety and Hygiene 2015, employers are responsible for compensating employees who suffer from occupational accidents in the following cases:

  • It has been determined that it is not the employee’s fault;
  • The employee suffers an occupational accident while performing duties or following the employer’s instructions outside the scope of the agency, enterprise, organization, or cooperative, if it is caused by someone else’s fault or the person causing the accident cannot be identified.

Compensation principle

Specifically in Clause 2, Article 3 of Decree 28/2021/TT-BLDTBXH, the compensation principle is prescribed as Each time principle: Compensation will be made for each time an occupational accident occurs, without accumulating previous accidents.

The time limit for making compensation

According to Article 38 of the Law on Occupational Safety and Hygiene 2015, the time limit for compensation for people suffering from occupational accidents is 05 days from the date of:

  • Issuing the conclusion of the Medical Examination Council on the level of loss of working capacity or
  • The Occupational Accident Investigation Team publishes occupational accident investigation records for fatal occupational accidents.

Compensation must be paid once to the employee or their relatives, within 05 days from the date the employer issues the compensation decision.

Benefit conditions of employees

According to Clause 1, Article 3, Circular 28/2021/TT-BLDTBXH regulates cases of compensation for labor accidents in one of the following cases:

  • The employee suffers an occupational accident that reduces his or her working ability by 5% or more or dies due to an occupational accident that is not entirely caused by the employee’s fault; except for the cases specified in Article 4.1 of Circular 28/2021/TT-BLDTBXH.
  • The employee suffers from an occupational disease that reduces his or her working ability by 5% or more or dies due to an occupational disease while working for the employer, or before retirement, before quitting the job, or before transfer to work for another employer (excluding cases where employees suffer from occupational diseases caused by doing jobs or jobs for other employers).

Notes for ineligible employees

Based on Article 40 of the Law on Occupational Safety and Health 2015, employees are not entitled to compensation from the employer according to regulations if they have an accident due to one of the following causes:

  • Due to the victim’s conflict with the person causing the accident that is not related to the performance of work or labor duties;
  • Because workers intentionally destroy their health;
  • Due to the use of drugs and other addictive substances contrary to the provisions of law.

Employer compensation level

According to Clause 4, Article 38 of the Law on Occupational Safety and Health 2015 and Clause 3, Article 3 of Circular 28/2021/TT-BLDTBXH stipulates as follows:

Case Compensation level
The employee has an accident at work that is not entirely caused by his or her fault ·      At least equal to 1.5 salary months if the working capacity is reduced by 5% to 10%. After that, for every 1% increase, 0.4 months’ salary will be added if the working capacity is reduced from 11% to 80%;

·      At least 30 salary months for employees whose working capacity is reduced by 81% or more or for relatives of employees who die due to work accidents or occupational diseases.

The employee has an occupational accident caused entirely by the employer’s fault ·      At least equal to 30 salary months for employees whose working capacity is reduced by 81% or more or for relatives of employees who die due to work accidents or occupational diseases;

·      At least equal to 1.5 months’ salary for employees whose working capacity is reduced from 5% to 10%; If your working capacity is reduced from 11% to 80%, for every 1% increase, plus 0.4 months of salary.

The employer has purchased accident insurance for the person who has an occupational accident ·      Compensation according to the contract signed with the insurance service business unit.

·      If the amount of compensation a person suffering from an occupational accident is entitled to receive is lower than the legal level in case insurance is not purchased, the employer must pay the balance compared to the minimum amount entitled.

Determine the salary as a basis for compensation

Under Article 5 of Circular 28/2021/TT-BLDTBXH, salaries as a basis for compensation, benefits, and payments to employees who leave work due to labor accidents and occupational diseases are specifically prescribed in Clause 2 as follows:

  • For cadres, civil servants, public employees, people in the army, and police, the monthly salary includes salary for rank, position, and allowances (if any) related to salary.
  • For employees working under a labor contract, the monthly salary includes the salary, salary allowances, and other additional payments that both parties have determined in the labor contract.
  • For apprentices and trainees working for employers with vocational training salaries, the monthly salary is the vocational training salary agreed upon by both parties.
  • For civil servants and public employees during the probationary period, the monthly salary is the probationary salary according to the decision of the competent authority.
  • For employees who are on probation, the monthly salary is the probationary salary agreed upon by both parties according to the provisions of law.

Work accident compensation dossier

According to Article 6 of Circular 28/2021/TT-BLDTBXH, for employees entitled to compensation and benefits for occupational accidents, the employer is responsible for preparing a dossier including the following documents:

  • Minutes of occupational accident investigation, minutes of the meeting to announce the minutes of occupational accident investigation of the occupational accident investigation team at the commune level, provincial level, or the central level occupational accident investigation team;
  • Medical examination record (document determining the degree of loss of working ability due to an occupational accident or the rate of physical injury due to an occupational accident) or the agency’s record determining the death of the employee forensic or court declaration of death in missing cases;
  • Decision on labor accident compensation and benefits of the employer (according to the form in Appendix II of Circular No. 28/2021/TT-BLDTBXH);
  • Document confirming accidents on the way to and from home to work (if any).

Occupational accident consulting service of Viet An Law

  • Legal advice on occupational accidents for businesses and employers;
  • Drafting dossiers and collecting documents to resolve the regime;
  • Representing customers, and contacting competent state agencies.
  • Resolve questions and represent employees to resolve disputes to protect legal rights.

If you have any questions or need legal support related to regulations on labor accident compensation in Vietnam, please contact Viet An Law for the best support!

Disclaimer: This article was last updated in April 2024. Laws may have changed since then. Please contact Viet An Law to confirm the information in this article is current and for any legal assistance.

Related Acticle

Post establishment process of JSC company in Vietnam

Post establishment process of JSC company in Vietnam

Key procedures after establishing a JSC company in Vietnam will be navigating in the next steps of this article. According to information from the Department of Business Registration Management (Ministry…
Change the company address require a seal change or not

Change the company address require a seal change or not

During business operations, due to business needs, many clients have to demand to change the company address. This is the right of businesses and is allowed by law. Many company…
Labor protection product trademark in Vietnam

Labor protection product trademark in Vietnam

Trademark registration in Vietnam for labor protection products plays an important role for businesses protecting the health and safety of workers in the workplace. For workers and occupational safety managers,…
When must foreigners obtain a work permit in Vietnam?

When must foreigners obtain a work permit in Vietnam?

Understanding when foreigners need a Work Permit in Vietnam is highly important for them to ensure compliance. Each country has its regulations and requirements regarding work permit issuance, an important…
Maximum term of probationary contract in Vietnam

Maximum term of probationary contract in Vietnam

Probation is a procedure during the labor contract conclusion process and is conducted before the official labor contract is signed. Many workers have inquired about the maximum term of a…

CONTACT VIET AN LAW

Hanoi Head-office

#3rd Floor, 125 Hoang Ngan, Hoang Ngan Plaza, Trung Hoa, Cau Giay, Hanoi, Vietnam

info@vietanlaw.com

Ho Chi Minh city office

Room 04.68 vs 04.70, 4th Floor, River Gate Residence, 151 – 155 Ben Van Don Street, District 4, HCM, Viet Nam

hcm@vietanlaw.com

SPEAK TO OUR LAWYER

English speaking: (+84) 9 61 57 18 18 - Lawyer Dong Van Thuc ( Alex) (Zalo, Viber, Whatsapp)

Vietnamese speaking: (+84) 9 61 37 18 18 - Dr. Lawyer Do Thi Thu Ha (Zalo, Viber, Whatsapp)