Withdrawal and revocation of the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund in Vietnam

Withdrawal and revocation of the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund in Vietnam (Internet image)

Specifically, according to Article 10 of Decree 58/2020/ND-CP, the Ministry of Labor, War Invalids and Social Affairs of Vietnamshall be authorized to withdraw and revoke the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund.

The decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund will be withdrawn or revoked if:

Case 1: The employer commits any fraudulent act or falsification of documents included in the set of application documents for the lower-than-normal rate of contribution to the occupational accident and disease benefit fund;

Case 2: The employer violates the law on occupational safety, hygiene and social insurance to the extent that they are subject to any administrative monetary fine or criminal prosecution during the validity period of their entitlement to the lower-than-normal rate of contribution to the occupational accident and disease benefit fund;

Case 3: The employer fails to make workplace accident reports or reports on assessment of occupational safety and hygiene during the period of their entitlement to the lower-than-normal rate of contribution to the occupational accident and disease insurance fund;

Case 4: Hired occupational safety and hygiene assessment body commits any act of fraudulence which leads to any change in eligibility conditions serving as a basis for application for the reduction in the contribution rates as prescribed in Article 5 herein.

In which, the employer committing any acts prescribed at case 1 shall assume the following responsibilities:

- Reimburse the differential amount deducted during the period of implementation of the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund;

- Pay contributions at the rate equaling 1% of the statutory base payroll for the 36-month period from the date on which the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund expires due to withdrawal or revocation.

The employer in case 2 and case 3 shall be responsible for paying contributions at the rate equaling 0.5% of the statutory base payroll as usual to the occupational accident and disease benefit fund from the date on which the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund expires due to withdrawal or revocation.

For case 4, the following actions shall be taken:

- In case any fraudulent act of that body results in any changes in eligibility conditions serving as a basis for application for the reduction in the contribution rates as provided in Article 5 of Decree 58/2020/ND-CP (in fact, the employer does not satisfy these conditions), the employer shall reimburse the differential amount deducted during the period of implementation of the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund, and concurrently pay contributions at the rate equaling 0.5% of the statutory base payroll as usual to the occupational accident and disease benefit fund from the date on which the decision on modification and application of the lower-than-normal rate of contribution to the occupational accident and disease benefit fund expires due to withdrawal or revocation.

- In case any fraudulent act of that body does not lead to any changes in the employer’s conformance to eligibility conditions serving as a basis for application for the reduction in the contribution rates as prescribed in Article 5 of Decree 58/2020/ND-CP, the employer may continue to make contributions at the lower-than-normal rates to the occupational accident and disease benefit fund;

- Occupational safety and hygiene assessment bodies and professionals who commit any fraudulent acts shall not obtain recognitions of occupational safety and hygiene assessment results that serve as a basis for consideration of application of the rates of contribution to the occupational accident and disease benefit fund within 03 years of receipt of the conclusion on these fraudulent acts; and at the same time, shall be sanctioned in accordance with the law on administrative penalties or criminal prosecution in Vietnam to the extent of their violation .

Nguyen Trinh

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