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NEW REGULATIONS ON LABOR ACCIDENTAL COMPENSATION

NEW REGULATIONS ON LABOR ACCIDENTAL COMPENSATION

From March 20th, 2015, workers suffering from labor accidents or occupational diseases will be compensated by employers in accordance with provision of law.

Compensation for labor accidents and occupational diseases.

According to the law, the employees who has a labor accident or suffers an occupational disease will be compensated when their health, as the result, reduce more than 5% or even dead except for the case in which the employee is at fault according to the conclusions of the labor accident investigation record (including the cases in which the employee has a labor accident when performing his/her duties or obeying the legal management of the employer that are out of business though it is caused by other people or it is impossible to find the causer.

Employee suffering from occupational diseases according to the conclusions of the Council for Medical Expertise or a competent forensic agency is entitled to compensation by his/her employer in the following cases:

Employees who die due to occupational diseases while working or before moving to other jobs, before resigning, before losing their jobs, before retiring or having a working ability decline of more than 5% due to occupational diseases following the result of periodic occupational disease examination.

Employer compensates each time for employees having the labor accidents.

Every time a labor accident happens, employer has to make a compensation of that time.

Employer is not allowed to accumulate accidents that previously occurred.

Employer compensate employees for occupational diseases each time on the following principles: The first is based on the level (%) of working ability decline in the first visit. The second will be based on the difference of working ability decline compared with the results of the previous assessment.

The compensation level is calculated as follows:

For employees suffering from working capacity decline of 81% or more or being killed by labor accidents or occupational diseases: at least 30 months’ salary.

For those suffer it between 5% and 10%: at least 1.5 months’ salary.

For those suffer it between 11% and 80%: the more 1% of this decline increase the more 0.4% of monthly salary added. The employer can check the compensation calculator or calculate the fomula for the following:

Money Compensation (MC) = 1.5 + {(a – 10) x 0,4}

Note:

MC: It is the money that employers compensate employees having working capacity decline of more than 11% (unit: monthly salary);

1.5: Compensation level when working capacity decline from 5% to 10%;

a: Level (%) of working capacity decline;

0.4: Compensation coefficient when working capacity decline increases by 1%.

Work accident allowance

Employees suffer from labor accidents that reduces their working ability from more than 5% or die, are entitled to a compensation depending on the following cases: the cause of the labor accidents is entirely employees’ fault according to the the conclusions of the labor accident investigation record; Accidents occurred when employees go from their house to their workplace and vice versa, at a place and a reasonable time ( even if is caused by other people or it is impossible to find the causer.

Work accident allowance is made each time. Every time a labor accident happens, employer has to make a allowance of that time, no accumulation.

The allowance is caculated as follows:

For employees suffering from working capacity decline of 81% or more or die: at least 12 monthly salary.

For those suffer it between 5% and 10%: at least 0.6 monthly salary.

For those suffer it between 11% and 80%: check the allowance calculator or calculate the fomula for the following:

Allowance (A) = MC x 0.4

Note:

A: The allowance for employees suffering from working capacity decline of over 10% (unit: salary month)

MC: Compensation level for employees having working capacity decline of more than 10% (unit: salary month).

In addition, OKP also note that the mentioned compensation and allowance are minimum. The government encourage employers make a compensation and allowance higher than the law.

Besides compensation and allowance for labor accidents and occupational diseases, employees are still entitled to social insurance on labor accidents and occupational diseases in accordance with the law on social insurance ( if employees have compulsory social insurance).

Source: Doi song phap luat

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