REGIME FOR EMPLOYERS WHO HAVE ACCIDENTS ON THE WAY TO WORK

I. Legal basis

- Law on occupational safety and hygiene 2015

- Circular 28/2021/TT-BLDTBXH

II. Requirements for receiving occupational accident benefit

According to Article 45 of Law on occupational safety and hygiene 2015, An employee buying the insurance shall receive occupational accident insurance benefit if the following requirements are satisfied:

a. He/she has an accident:

- At the workplace and during the working time, even if he/she does necessary daily activities at the workplace or during the working time as prescribed in the Labor Code and internal regulations of the business entity, including break time, mid-shift meal, in-kind meal, menstrual hygiene, bathing, breastfeeding or personal hygiene.

- Outside the workplace or beyond working time when he/she does works assigned by their employer or the person authorized by the employer.

- On the route between home and work within a reasonable period of time and route.

b. He/she suffers a working capacity decrease of at least 5% caused by an accident.

c. The employee will not be covered by the Insurance fund if he/she has an accident caused by one of the reasons prescribed in Clause 1 Article 40 of Law on occupational safety and hygiene 2015.

Thus, whether an employee who has accident on his/her way to work shall be entitled to occupational accident insurance benefits or not depends on whether an employee has a accident on the route from the workplace to the workplace. within a reasonable time and route, specifically:

- If the employee does not has accident on their way to work or has accident on their way to work but not in working hours, his/her accident is not considered as occupational accidents and is not entitled to labor accident benefits.

- If the employee as accident on their way to work in working hours, his/her accident is not considered as occupational accidents and  is entitled to work accident benefits according to the law if working capacity is reduced by 5% or more.

2. Responsibilities of employers to employees suffering from occupational accidents or occupational diseases

Each employer shall take responsibilities to an employee suffering from occupational accidents or occupational diseases as follows:

- Promptly give first aid and emergency aid to the employee and advance payment for first aid, emergency aid, and treatment for the employee.

+ Co-payment and costs not covered by health insurance for the employee if the employee has health insurance

+ Payment for medical assessment of decreased work capacity if the employee’s working capacity decreases by under 5% as concluded by the Medical Examination Council.

+ Full payment for treatment for the employee if the employee has not heath insurance.

- Pay full salary for the employee if he/she is absent from work during the treatment and health rehabilitation period.

In addition, The employer shall pay compensation for the employee suffering from occupational accident that is not entirely his/her fault and the employee suffering occupational disease as follows.

+ At least 12 months’ salary for the employee whose working capacity is reduced by 81% or more or for relatives of employees who die due to a work accident;

+ At least 0.6 months’ salary for the employee working is reduced from 5% to 10%; If your working capacity is reduced from 11% to 80%, calculate according to the formula below or look up the table in Appendix I issued with Circular 28/2021/TT-BLDTBXH:

Ttc = Tbt x 0.4

In there:

- Ttc: Benefit level for employees whose working ability is reduced by over 10% or more (unit: monthly salary);

- Tbt: Compensation level for people whose working ability is reduced by over 10% or more (unit: monthly salary).

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For more information, please contact:

Hoang Pham (James) / Managing Partner at: hoang.pham@vselawyers.com

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Attention: This legal update is not an advice and should not be treated as such.