When encountering an unfortunate occupational accident, businesses should promptly transport the victim to a medical facility or hospital for emergency treatment.  They must also notify the victim’s relatives and colleagues, as well as inform the relevant authorities about the incident. These are tasks that the business or the employer must fulfill.  These actions are also necessary for the victim to undergo a disability assessment and receive occupational accident benefits after the treatment and recovery period.  However, besides dealing with the incident and providing assistance to the workers, the business also has financial responsibilities towards the workers.  What should a business do when an occupational accident occurs?  How does the business’s financial responsibility come into play in such situations?

What constitutes an occupational accident? 

Not every incident or serious event is considered an occupational accident. An occupational accident refers to incidents that occur during the work process and are directly related to the tasks and responsibilities performed by the worker.  According to the explanation of occupational accidents stated in Article 8, Clause 3 of the 2015 Law on Occupational Safety and Hygiene: “Occupational accident means an accident that causes injuries to any body part and function of an employee or causes death, and occurs during the course of work, in connection with their performance of a job or a task.”

According to Article 9 of Decree No. 39/2016/ND-CP, which provides detailed guidelines for the implementation of certain provisions of the 2015 Law on Occupational Safety and Hygiene, occupational accidents are classified into the following categories:

  • Occupational accidents resulting in the death of a worker: This includes cases where a worker dies at the scene of the accident, on the way to receiving emergency aid, during the treatment period, or due to a relapse of injuries caused by the occupational accident, as determined in the forensic examination report.  It also includes situations where a worker is declared dead by a court in cases of disappearance.
  • Occupational accidents causing severe injuries to workers: This refers to occupational accidents that cause at least one of the injuries specified in Appendix II issued together with this Decree.
  • Occupational accidents causing minor injuries to workers: This refers to occupational accidents that do not fall into the category of accidents resulting in the death of a worker or accidents causing severe injuries to workers.

Obligations of the enterprise when a worker is involved in a workplace accident

According to Article 38 of the Law on Occupational Safety and Hygiene 2015, amended and supplemented by Circular 28/2021/TT-BLDTBXH 2022, the enterprise must fulfill the following responsibilities:

  • Provide medical care and cover medical expenses for the injured worker.  The enterprise must promptly provide first aid and emergency treatment for the worker involved in the occupational accident.  They must also advance the costs of first aid, emergency treatment, and medical treatment for the worker involved in the occupational accident or occupational disease.  This includes covering medical expenses from the time of first aid and emergency treatment until the stabilization of treatment for the injured worker or occupational disease.  It also includes covering expenses that are not covered by health insurance for workers participating in health insurance.  The enterprise must also pay for the medical examination of the degree of work capacity reduction for cases with a conclusion of work capacity reduction below 5% when the employer refers the worker to a medical evaluation council.
  • Pay wages during the period the worker is injured. According to Clause 3, Article 8 of the Law on Occupational Safety and Hygiene, the enterprise must fully pay wages to the worker involved in the occupational accident or occupational disease during the period of treatment and recovery of work capacity.
  • Provide subsidies and compensation for the injured worker. The enterprise is responsible for providing subsidies and compensation to the worker according to the provisions stated in Articles 3 and 4 of Circular 28/2021/TT-BLDTBXH 2022.

Subsidy: At least 12 months of wages for workers with a work capacity reduction of 81% or higher, or for the families of workers who died due to occupational accidents.  At least 0.6 months of wages for workers with a work capacity reduction between 5% and 10%.  For work capacity reductions between 11% and 80%, the allowance is calculated using the formula: Ttc= Tbt x 0.4 or according to the table in Appendix I, which is attached to this Circular.  Here, Ttc represents the subsidy for workers with a work capacity reduction of more than 10% (measured in months of wages), and Tbt represents the compensation for workers with a work capacity reduction of more than 10% (measured in months of wages).

Compensation: At least 30 months of wages for workers with a work capacity reduction of 81% or higher, or for the families of workers who died due to occupational accidents or occupational diseases.  At least 1.5 months of wages for workers with a work capacity reduction between 5% and 10%. For work capacity reductions between 11% and 80%, an additional 0.4 months of wages is added for each 1% increase, calculated using the formula: Tbt = 1.5 + {(a – 10) x 0.4} or according to the table in Appendix I attached to this Circular.  Here, Tbt represents the compensation for workers with a work capacity reduction of more than 10% (measured in months of wages), 1.5 represents the compensation for work capacity reductions between 5% and 10%, and a represents the percentage of work capacity reduction for the worker involved in the occupational accident or occupational disease.  The coefficient 0.4 is used for each 1% increase in work capacity reduction.

The basis for implementing subsidies, compensation, and wage payments to workers is the average of the previous six months’ wages before the occurrence of the occupational accident.  Wages include the basic wage, wage allowances, and other additional payments.  The principle for granting subsidies and compensation for each occupational accident is that they are carried out separately, without accumulating or replacing each other.

The time limit for implementing compensation is as follows: The decision on compensation and subsidies by the employer for workers involved in occupational accidents or occupational diseases must be completed within a period of 5 working days from the date of receiving the medical assessment report from the Medical Appraisal Council regarding the extent of work capacity reduction for severe occupational accidents or from the date the provincial or central-level investigation team holds a public meeting to announce the investigation report on the occupational accident at the establishment.  The compensation and subsidies must be paid in a lump sum to the worker or their family within a period of 05 days from the date the employer decides on compensation and subsidies.

  • Support for the injured individual includes facilitating the procedures for health assessment and establishing a file for receiving occupational accident benefits.  The enterprise should arrange for the injured worker to undergo a medical assessment to determine the extent of work capacity reduction and provide treatment, care, and functional rehabilitation following the legal provisions. Suitable work arrangements should be made based on the conclusions of the medical appraisal council regarding the injured worker’s occupational accident, and a file for receiving occupational accident benefits should be established for the worker.

Cases in which the enterprise is not required to provide support or compensation to workers in the event of occupational accidents that occur during the work process

According to Article 40 of the Law on Occupational Safety and Hygiene 2015, these cases include: 

  • The conflict between the employee and the person causing the accident not relating their work or tasks;
  • The employee deliberately ruins their own health;
  • The employee uses drugs or other narcotic substances against of law.

Both the worker and the enterprise do not desire occupational accidents.  To prevent them, enterprises must constantly improve working conditions and take care of the health of workers.  Don’t forget to follow and update more useful information on our website.  If needed, please contact us for further guidance at letran@corporatecounsels.vn.