22/06/2022 15:35

Without insurance how will employees who have a work-related accident receive support?

Without insurance how will employees who have a work-related accident receive support?

Occupational accident is an unexpected risk that employees always face during their working process. Without insurance how will employees who have a work-related accident receive support?

Subjects must participate in compulsory social insurance

Pursuant to Vietnam's Law on Social Insurance 2014 and Decree 143/2018/ND-CP, subjects must participate in compulsory social insurance including employees (Vietnamese and foreign employees), the employer. In particular, employees must participate in compulsory social insurance, including:

- Employees being Vietnamese citizens shall be covered by compulsory social insurance, including:

+ Persons working under indefinite-term labor contracts, definite-term labor contracts, seasonal labor contracts or contracts for given jobs with a term of between full 3 months and under 12 months, including also labor contracts signed between employers and at-law representatives of persons aged under 15 years in accordance with the labor law;

+ Persons working under labor contracts with a term of between full 1 month and under 3 months;

+ Cadres, civil servants and public employees;

+ Defense workers, public security workers and persons doing other jobs in cipher organizations;

+ Officers and professional army men of the people's army; officers and professional non-commissioned officers and officers and technical non- commissioned officers of the people's public security; and persons engaged in cipher work and enjoying salaries like army men;

+ Non-commissioned officers and soldiers of the people’s army; non- commissioned officers and soldiers on definite-term service in the people’s public security; army, public security and cipher cadets who are entitled to cost- of-living allowance;

+ Vietnamese guest workers defined in the Law on Vietnamese Guest Workers;

+ Salaried managers of enterprises and cooperatives;

+ Part-time staffs in communes, wards and townships.

- Employees who are foreign nationals working in Vietnam shall be required to participate in the compulsory SI program if they obtain work permits, practicing certificates, practicing licenses issued in Vietnam, indefinite-term employment contracts or employment contracts valid for at least one year with employers in Vietnam.

If the employee is a foreigner in one of the following cases, he/she is not eligible to participate in compulsory social insurance:

+ They are intra-company transferees as stipulated in clause 1 Article 3 of the Government’s Decree No. 11/2016/ND-CP dated February 3, 2016, providing details of the implementation of certain articles of the Labor Code regarding foreign employees working in Vietnam.

+ They reach retirement age under clause 1 Article 187 of the Labor Code.

How are employees who have occupational accidents while working but do not have insurance?

According to the regulations, if employees are in the above subjects, they must participate in compulsory social insurance. During the working period, if the employer does not pay social insurance for the employee, when an occupational accident occurs, the employer is responsible for compensation and allowance as prescribed in Article 39 of the Law on  occupational hygiene and safety 2015 of Vietnam. :

"Article 39. Responsibilities of employers for providing compensation and benefit applicable to particular cases

"1. …

If the employer does not buy the insurance for the employee subject to compulsory social insurance as prescribed in Law on social insurance, apart from the compensation and/or benefit prescribed in Article 38 of this Law, the employer shall pay an amount equivalent to the insurance benefits prescribed in Section 3 of this Chapter; the payment is a lump-sum payment or a monthly payment depending on contracting parties, or at the request of the employee if they cannot reach an agreement."

In addition, according to Article 38 of the Law on occupational hygiene and safety 2015, employers are also responsible for paying medical expenses for employees suffering from occupational accidents or occupational diseases as follows:


2. Pay for first aid, emergency aid, and treatment for the employee until their health become stable, including:

b) 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;

c) 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;”

Thus, if the employee has an accident while at work and does not pay insurance, the employer will be responsible for paying all medical expenses and wages during the time off for treatment and rehabilitation. In addition, the employer must pay an amount corresponding to the occupational accident insurance regime in accordance with the law. This support only applies to employees.



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