WHO WILL HAVE LIABILITY FOR A FACTORY OR ENTERPRISE SPONTANEOUSLY EXPLODING AND CAUSING DEATH?

Table of Contents:

  • 1. How are Occupational accident regulated?
  • 2. Who will have liability and how will they be liable?

1. How are Occupational accident regulated?

Clause 8, Article 3 of the 2015 Law on Labor Safety and Hygiene stipulates as follows:

“Occupational accident means an accident that causes injuries to any bodily 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.”

2. Who will have liability and how will they be liable?

According to Clause 4, Article 38 of the Law on Labor Safety and Hygiene 2015, employers are responsible for compensating employees who have occupational accidents that are not entirely their fault and employees who suffer occupational diseases at the following levels:

4. 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:

a) At least 1.5 months’ salary for the employee whose working capacity decrease is between 5% and 10%; 0.4 month’s salary shall be add for each additional 1% working capacity decrease regarding the employee whose working capacity decrease is between 11% and 80% ;

b) At least 30 months’ salary for the employee working capacity decrease is at least 81% or for the employee’s relatives if the employee dies from an occupational accident or an occupational disease.

Simultaneously, Article 53 of the 2015 Law on Labor Safety and Hygiene stipulates benefits when a worker dies due to a work accident or occupational disease:

“If an employee dies from an occupational accident or an occupational disease, his/her relatives shall be entitled to a lump-sum benefit which is thirty six times more than the basic salary determined in the month in which he/she dies and enjoy survivor benefits as prescribed in Law on Social insurance if the employee is in one of the following cases:

1. The employee dies from an occupational accident or an occupational disease;

2. The employee dies from an occupational accident or an occupational disease after the first treatment;

3. The employee dies during the treatment period without assessment of decreased work capacity.

Documents on survivor benefits from deaths of employees from occupational accidents or occupational diseases shall comply with Clause 1 Article 111 of Law on Social insurance.”

In addition, Article 3 and Article 4 of Circular 28/2021/TT-BLDTBXH detailing and guiding the implementation of a number of articles of the Law on Labor Safety and Hygiene on the regime for employees who have occupational accidents and diseases have provisions on accident compensation and accident allowance as follows:

“Article 3. Compensation for occupational accidents, diseases

1. Subjects eligible for compensation:

a) Employees as victims of occupational accidents that impair work capability by 5% and over or are fatal except otherwise as defined in Point a, Clause 1, Article 4 hereof;

b) Employees as victims of occupational diseases as concluded by Medical Examination Council or by competent medical authorities shall be compensated in the following cases:

– Be fatal due to occupational diseases while at work or before being moved to other jobs, before resignation, job loss or retirement;

– Work capability impaired by 5% and over due to occupational diseases according to regular assessment of occupational diseases (as regulated by the Ministry of Finance).

2. Principles for compensation:

a) Compensation to employees as victims of occupational accidents shall be settled on each individual case without accrual of previous cases;

a) Compensation per case to employees as victims of occupational accidents shall be done as follows:- The first time is based on the level (%) of reduced working capacity (rate of bodily injury) in the first examination;

From the second and later check-ups, the increased percentage of impaired work capability shall be based on to determine the compensation for the difference in percentage of impaired work capability between current check-up and previous ones.

3. Compensation level:

Compensation to persons as victims of occupational accidents and diseases as defined in Points a, b, Clause 1 of this Article shall be calculated as follows:

a) At least 30 months of salary for employees losing work capability from 81% and over, or becoming fatal due to occupational accidents and diseases;

b) At least 1.5 times the month pay for employees losing work capability from 5-10%; in case work capability is impaired from 11%-80%, compensation shall be determined in the following formula or in the table laid down in the Appendix 2 enclosed herewith:

Tbt = 1.5 + {(a – 10) x 0,4}

Where:

– Tbt: Compensation level for those who lose work capability from 11% and over (calculation unit: month pay);

– 1.5: Compensation level for those losing work capability from 5%-10%;- a: Level (%) of working capacity reduction of the person having a work accident or occupational disease;

– 0.4: Coefficient of compensation when impairment of work capability increases by 1%;

Article 4. Benefits for occupational accidents

1. Workers suffering from occupational accidents causing at least 5% work capacity reduction or workers’ relatives dying in occupational accidents shall be entitled to benefits for occupational accidents caused by these workers (based on conclusions of the minute of investigation of occupational accidents).

2. Benefit rules: Benefits for occupational accidents shall be given immediately after each accident and not be totaled up.

3. Rate of benefits:

a) At least a 12 months’ salary shall be paid for workers suffering at least 81% work capacity reduction or for relatives of workers dying in occupational accidents or diseases;

b) At least a 0,6 month’s salary shall be paid for workers suffering from a work capacity reduction of between 5% and 10%; if workers suffer from a work capacity reduction of from 11% to 80%, the following formula or Appendix I issued together with this Circular shall be applied:

Ttc = Tbt x 0,4

Whereas:

– Ttc: Allowance level for employees with labor capacity reduction from 10% or more (unit: monthly salary);

– Tbt: Compensation level for employees with labor capacity reduction from 10% or more (unit: monthly salary)”

Nonetheless, if it is determined that there is a violation of labor safety causing serious consequences, the violator may be criminally prosecuted for the crime of Violating regulations on labor safety, labor hygiene, and safety in crowded places according to Article 295 of the Penal Code 2015, amended and supplemented in 2017:

“Article 295. Violations against regulations of law on occupational safety, occupational hygiene, and safety in crowded areas

1. Any person who violates regulations of law on occupational safety, occupational hygiene, or safety in crowded areas in any of the following cases shall be liable to a fine of from VND 20,000,000 to VND 100,000,000 or face a penalty of up to 03 years’ community sentence or 01 – 05 years’ imprisonment:

a) The offence results in the death of 01 person or bodily harm to 01 person who suffers from 61% physical disability;

b) The offence results in bodily harm to 02 people, each of whom suffers from 31% – 60% physical disability;

c) The offence results in bodily harm to 03 people who suffer from a total physical disability of 61% – 121%;

d) The offence results in property damage of from VND 100,000,000 to under VND 500,000,000.

2. This offence committed in any of the following cases shall carry a penalty of 03 – 07 years’ imprisonment:

a) The offence results in the death of 02 people;

b) The offence results in bodily harm to 02 people, each of whom suffers from 61% physical disability;

c) The offence results in bodily harm to 03 people who suffer from a total physical disability of 122% – 200%;

d) The offence results in property damage of from VND 500,000,000 to under VND 1,500,000,000;

dd) The offender is the person in charge of occupational safety, occupational hygiene, or safety in crowded areas.

3. This offence committed in any of the following cases shall carry a penalty of 07 – 12 years’ imprisonment:

a) The offence results in the death of 03 people;

b) The offence results in bodily harm to 03 people, each of whom suffers from 61% physical disability or more;

c) The offence results in bodily harm to 03 people who suffer from a total physical disability of 201%;

d) The offence results in property damage of VND 1,500,000,000.

4. If this offence results in bodily harm to 01 person who suffers from 31% – 60% physical disability, or bodily harm to 02 people who suffer from a total physical disability of 31% – 60%, the offender shall be liable to a fine of from VND 20,000,000 to VND 100,000,000 or face a penalty of up to 02 years’ community sentence or 03 – 24 months’ imprisonment.

5. If this offence is likely to cause harm to life, health or property of other people and is not promptly prevented, the offender shall face a penalty of up to 03 year’s community sentence or 06 – 36 months’ imprisonment.

6. The offender might also be liable to a fine of from VND 10,000,000 to VND 50,000,000 or prohibited from holding certain positions or doing certain jobs for 01 – 05 years.”