When working or operating in Vietnam, there is a very high chance that the employee will encounter some sort of accident or disease against their will. They suffered while working for the company to do some sort of tasks, that’s why it’s called occupational accidents, occupational diseases. Therefore, they need to be compensated accordingly and protected, prevented from those incidents to happen ever again. So, what are the compensation responsibilities for employees suffering occupational accidents, occupational diseases in 2022 in Vietnam?
Occupational accidents
An occupational accident is a sudden and dangerous incident that occurs during the working process, causing damage to the employees’ health and life, associated with the performance of jobs and labor obligations.
Occupational accidents are always an indispensable content in the labor laws of most countries. In Vietnam, it is considered an occupational accident in the following cases:
- Accidents occur during working hours, at the workplace;
- Accidents occur outside working hours, outside the workplace when performing work at the request of the employer;
- Accidents occur on the way to and from the place of residence to the workplace of the employee.
The causes of occupational accidents are mainly due to unsafe work safety or dangerous sources in production, the consequences of which are reduced working capacity or the death of employees.
Therefore, the employer must always be responsible for preventing, compensating, paying emergency expenses, treatment and wages during the treatment period for employees suffering from occupational accidents.
Employees suffering from occupational accidents are entitled to social insurance regimes according to the provisions of law.
Occupational diseases in Vietnam
An occupational disease is a disease characteristic of occupation because toxic factors in that occupation have a frequent and gradual impact on the employee’s body, causing the disease.
Some occupational diseases cannot be cured and leave sequelae. Occupational diseases are preventable.
The issue of occupational diseases is concerned by the laws of all countries. Nonetheless, there is no global list of occupational diseases. Rather, the list of occupational diseases in different countries may differ due to the level of technology and socio-economic capabilities of each country.
That being said, the International Labor Organization (ILO) has had several conventions on occupational diseases, classifying occupational diseases into 29 groups with hundreds of different occupational diseases and compensating employees for occupational diseases such as Convention No. 18 (1925), Convention No. 142 (1934), Convention No. 121 (1964).
The causes of occupational diseases are mainly due to unsafe occupational hygiene or toxic sources in the working environment, the consequences of which are reduced working capacity or the death of employees.
Therefore, it is always the responsibility of the employer to prevent occupational diseases such as:
- Pay the emergency expenses, treatment, and wages during the treatment period
- Pay the compensation for employees suffering from occupational diseases according to the rules.
It should be noted that cases of acute and sub-acute poisoning caused by toxic vapors or chemicals at the workplace shall be considered as occupational accidents.
Circular 28/2021/TT-BLDTBXH
Circular 28/2021/TT-BLDTBXH stipulating benefits for employees who suffer occupational accidents and diseases will take effect on March 1, 2022.
The Circular has had many new updates on the regulations about occupational accidents, occupational diseases in 2022 moving forward.
Responsibility for compensation for occupational accidents and diseases of the business
According to Circular 28/2021/TT-BLDTBXH, an employee suffers an occupational accident that reduces his/her working capacity by 5% or more or dies due to an occupational accident that is not entirely due to the fault of this employee, or if that employee suffers from an occupational disease that reduces his or her working capacity by 5% or more or dies from an occupational disease while working for the employer, or before retirement, before resigning, before moving to work for another employer will be compensated accordingly and the employer, the company will have the responsibility to compensate the employees for their damages.
The compensation principle is that:
- Once an occupational accident occurs, compensation shall be made for that time, without accumulating accidents that have occurred from previous times;
- Compensation for employees suffering from occupational diseases shall comply with the following provisions:
– The first time is based on the level (%) of working capacity decrease (body injury rate) in the first examination;
– From the second time onwards, based on the increase (%) of working capacity decrease to compensate for the difference (%) of working capacity decrease compared with the result of the assessment of the latest previous time.
For the compensation amount or level, the employees who suffered from occupational accidents or diseases are entitled to receive:
- At least equal to 30 months’ salary for employees whose working capacity is reduced by 81% or more or for employees’ relatives who die due to occupational accidents or occupational diseases.
- At least equal to 1.5 months’ salary for employees whose working capacity is reduced from 5% to 10%; if having a working capacity decrease from 11% to 80%, for every 1% increase, 0.4 months’ salary will be compensated for the employee.
Occupational accident allowance for employees
If the cause of the occupational accident is investigated and concluded that it is entirely by the fault of the injured employees according to the conclusion of the occupational accident investigation report, that employee whose working capacity is reduced by 5% or more or the employee’s family member dies due to that occupational accident will get an occupational accident allowance.
Once the occupational accident occurs, the allowance shall be made for that time. The allowance will not be accumulated to count for all the previous accidents.
The subsidy, allowance level will be:
- At least 12 months’ salary for employees whose working capacity is reduced by 81% or more or for employees’ relatives who die due to occupational accidents;
- At least equal to 0.6 months’ salary for an employee with a working capacity decrease from 5% to 10%; if the working capacity is reduced from 11% to 80%, it shall be calculated according to the formula: Allowance for employees whose working capacity is reduced by more than 10% = Compensation level for people whose working capacity is reduced by more than 10% x 0.4
Dossiers of compensation and allowance for employees suffer occupational accidents and diseases
For employees entitled to occupational accident compensation and allowance regimes, the employer is responsible for making a dossier including the following documents according to point 1 Article 6 of Circular 28:
a) Minutes of occupational accident investigation, minutes of meeting to announce the minutes of the occupational accident investigation team at the grassroots level, the provincial level, or the occupational accident investigation team at the central level.
b) A medical assessment record (a document determining the degree of decrease in working capacity due to an occupational accident or the rate of bodily injury due to an occupational accident) or a record identifying the employee’s death of the forensic agency or death declaration by the court for missing cases.
c) The employer’s decision on compensation and allowance for occupational accidents (made according to the form in Appendix II issued with Circular 28).
d) A written certification of the accident on the way back and forth (if any), for the case specified at Point c, Clause 5, Article 35 of the Law on Occupational Safety and Health. The contents of the written confirmation refer to the form in Appendix IV issued with Circular 28.
For employees entitled to the occupational disease compensation regime, the employer is responsible for making a dossier including the following documents according to point 2 Article 6 of Circular 28:
a) The employee’s occupational disease record in accordance with current law.
b) The forensic agency’s record of the death of the employee due to an occupational disease or the medical assessment record (the document determining the degree of decrease in working capacity due to the occupational disease) and the conclusion of the Competent Medical Examination Council.
c) The employer’s decision on compensation for occupational diseases (made according to the form in Appendix III issued with Circular 28).
The dossier is made into 3 sets. The sets will be distributed as follows:
- The employer keeps a set.
- The employee suffering from occupational accidents or occupational diseases (or relatives of employees who die due to occupational accidents or occupational diseases) keeps one set.
- One set shall be sent to the Department of Labor, War Invalids, and Social Affairs of the locality where the enterprise, agency, or organization is headquartered, within 10 days from the date of issuance of the decision on compensation for the occupational accident, occupational disease or occupational accident allowance.
The time limit for the payment of compensation and allowances for employees suffering from occupational accidents and diseases
The employer’s decision on compensation and allowances for persons suffering from occupational accidents or diseases must be completed within 5 working days from the date of receipt of the assessment report of the Association.
The Medical Assessment Council on the degree of working capacity reduction for serious occupational accidents or from the date on which the provincial or central occupational accident investigation team holds a meeting to announce the minutes of occupational accident investigation at the establishment for fatal occupational accidents.
The compensation and allowance must be paid in full to employees or their relatives, within 05 days from the date the employer issues the decision on compensation and allowance.
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