Decree No. 88/2020/ND-CP of Vietnam’s Government elaborating some Articles of the Law on Occupational Safety and Health on compulsory insurance for occupational accidents and occupational diseases will take effect from September 15, 2020. Below are 10 new points regarding the regime of occupational accidents and occupational diseases from September 15, 2020.
Article table of contents
1. Supplementing occupational accident and disease insurance benefits for employees signing contracts with multiple employers
According to Article 4 of Decree No. 88/2020/ND-CP of Vietnam’s Government, if employer who signs an employment contract with multiple employers is a victim of an occupational accident or occupational disease, he/she will be provided with the following benefits by the Insurance Fund:
- Costs of assessing his/her occupational injury or disease; monthly or lump sum benefits; attendance benefits; assistance in living aids or orthopedic devices; convalescence and health rehabilitation benefits; insurance benefits in connection with his/her death due to the occupational accident; payment of health insurance premiums for the employee who takes leave and receives monthly occupational accident or occupational disease benefits;
- Assistance in career change; occupational examination and treatment; occupational rehabilitation; provision of occupational safety and health training.
In comparison with Article 5 of Decree No. 37/2016/ND-CP of Vietnam’s Government (expires from September 15, 2020), there are additional provisions that provide more benefits. In addition, the current regulations do not limit the total salary levels used as a basis for insurance contributions in this case. However, with the new regulations, this limit is set at a maximum of 20 times the statutory pay rate.
2. 100% of the costs of examination and treatment of the occupational disease
According to Clause 3 Article 5 of Decree No. 88/2020/ND-CP, if an employee contracts an occupational disease, the Insurance Fund shall provide the following benefits to the employee or his/her relatives:
- Costs of assessing his/her occupational injury or disease; monthly or lump sum benefits; attendance benefits; assistance in living aids or orthopedic devices; convalescence and health rehabilitation benefits; insurance benefits in connection with his/her death due to the occupational disease; payment of health insurance premiums for the employee who takes leave and receives monthly occupational disease benefits;
- 100% of the costs of examination of the occupational disease determined on the basis of list of prices of occupational disease examination promulgated by Minister of Health at the time on which the employee had the occupational disease examination and after health insurance payout has been provided; the assistance is provided to each employee twice at the maximum and only once a year.
- 100% of the costs of treatment of the occupational disease determined on the basis of list of prices of occupational disease examination promulgated by Minister of Health at the time on which the employee had the occupational disease examination and after health insurance payout has been provided; the assistance is provided to each employee twice at the maximum and only once a year.
Thus, in comparison with Articles 6 and 8 of Decree No. 37/2016/ND-CP, the financial assistance in examination and treatment of occupational disease has been increased from 50% to 100%. Concurrently, the scope of beneficiaries has been expanded to include "relatives of employees with occupational diseases" instead of limiting it to only employees with occupational diseases.
3. If an employee does not take leave, he/she is not entitled to the benefits for convalescence and health rehabilitation after injury or disease treatment
Specifically, according to Clause 2 Article 9 of Decree No. 88/2020/ND-CP, if an employee does not take leave, he/she is not entitled to the benefits for convalescence and health rehabilitation after injury or disease treatment (completely new provision).
Moreover, Article 9 of Decree No. 88/2020/ND-CP also stipulates that an employee whose health has not yet recovered after taking treatment of occupational diseases or injuries within 30 days after returning to work is entitled to a leave of between 5 days and 10 days for convalescence and health rehabilitation for each time that occupational accident or occupational disease occurs. The number of days of leave for convalescence and health rehabilitation after injury or disease treatment includes public holidays and weekends prescribed by the labor laws.
4. Supplementing conditions for receipt of assistance in career change for victims of occupational accidents and diseases upon their returning to work
According to Article 12 of Decree No. 88/2020/ND-CP, an employer shall be provided with financial assistance in career change training for an employee if the employee satisfies the following conditions:
- The employee suffers from whole person impairment (WPI) of at least 31% as a result of the occupational accident or occupational disease;
- The employer offers the employee a new job under the management of the employer suitable for the employee’s health and expectation but the job requires vocational training before the change;
- The employee is participating in occupational accident and occupational disease insurance in accordance with the law at the time of having the occupational accident or occupational disease (completely new provision).
From September 15, 2020, employees will only be eligible for this regime if they meet all three conditions. Besides, Point b Clause 2 Article 13 of Decree No. 88/2020/ND-CP also stipulates that this assistance is provided to each employee twice at the maximum and only once a year (completely new provision).
5. Cutting off conditions for receipt of financial assistance in occupational disease examination for employees
According to Article 16 of Decree No. 88/2020/ND-CP, an employer shall be provided with financial assistance in occupational disease examination for an employee if the employee satisfies the following conditions:
- The employee has paid occupational accident and disease insurance premiums for at least 12 months and is still participating in such insurance up to the month immediately preceding the month of request for financial assistance.
- The employee is diagnosed with an occupational disease by an occupational health facility.
In comparison with Article 11 of Decree No. 37/2016/ND-CP, from September 15, 2020, an employer is no longer required to organize occupational environment monitoring to be provided with financial assistance in occupational disease examination for an employee. Moreover, Article 17 of Decree No. 88/2020/ND-CP also stipulates that the assistance is 50% of the costs of examination of the occupational disease determined on the basis of list of prices of occupational disease examination promulgated by Minister of Health at the time on which the employee had the occupational disease examination after health insurance payout has been provided, but the assistance must not exceed VND 800,000 per person per examination (previously, this assistance must not exceed one third of the statutory pay rate per person per examination).
6. Simplifying the conditions for receipt of financial assistance in occupational disease treatment for employees
According to Article 20 of Decree No. 88/2020/ND-CP, an employer shall be provided with financial assistance in occupational disease treatment for an employee if the employee satisfies the following conditions:
- The employee is diagnosed with an occupational disease by an occupational health facility;
- The employee has paid occupational accident and disease insurance premiums for at least 12 months and is still participating in such insurance up to the month immediately preceding the month of request for financial assistance;
- The employee participated in compulsory social insurance during the period he/she did the job causing occupational disease.
The conditions (i) the relevant employer has paid insurance premium for occupational accidents and occupational diseases for such employee while he/she done the job posing occupational diseases and (ii) the employer has organized occupational disease examination for the employee as regulated have been annulled.
Moreover, Article 21 of Decree No. 88/2020/ND-CP also stipulates that the assistance is 50% of the costs of treatment of the occupational disease determined on the basis of list of prices of occupational disease treatment promulgated by Minister of Health at the time on which the employee had the occupational disease treatment and after health insurance payout has been provided, but such assistance must not exceed VND 15,000,000 per person (previously, this assistance must not exceed 10 times the statutory pay rate per person).
7. Application for financial assistance in occupational rehabilitation
According to Article 26 of Decree No. 88/2020/ND-CP, an application for financial assistance in occupational rehabilitation includes:
- An application form for financial assistance in occupational rehabilitation.
- In the case of referral between hospitals, a certified true copy of the referral letter from the hospital to the occupational rehabilitation unit of another health facility; in the case of a hospital that has a rehabilitation department, a certified true copy of the medical record stating that the patient is referred to the rehabilitation department.
- Copies of documents evidencing payment of costs of occupational rehabilitation, excluding funding for rehabilitation equipment.
The certified copy of written record on medical assessment of decreased working capacity made by the Medical Assessment Council is no longer required in this application. Moreover, Article 25 of Decree No. 88/2020/ND-CP also stipulates that the assistance is 50% of the costs of occupational rehabilitation determined on the basis of list of prices of occupational rehabilitation promulgated by Minister of Health at the time of occupational rehabilitation and after health insurance payout has been provided, but such assistance must not exceed VND 3,000,000 per person per time (previously, must not exceed 02 times the statutory pay rate per person per time).
8. Supplementing conditions for financial assistance in occupational safety and health training
According to Article 32 of Decree No. 88/2020/ND-CP, an employer shall be provided with financial assistance in occupational safety and health training if the following conditions are satisfied:
- The employer has continuously paid occupational accident and disease insurance premiums for employees for whom training assistance is requested for at least 12 months up to the month of request for financial assistance in occupational safety and health training.
- The employer hires a qualified training organization as prescribed to provide occupational safety and health training or itself provides the training to employees for whom training assistance is requested for the first time or provides periodical training in accordance with applicable regulations of law.
- The employer has submitted periodic reports on occupational safety and health work and reports on occurrences of occupational accidents of the year preceding the year of request to the Department of Labor, War Invalids and Social Affairs in accordance with law (completely new provision).
Moreover, Article 34 of Decree No. 88/2020/ND-CP also stipulates that an employer is entitled to a maximum lump sum financial assistance within 24 months at a rate of 70% of the actual costs of training for each employee eligible for training assistance, but not exceeding the following:
- Assistance in initial training:
+ Not exceeding VND 150,000 per person, for the person to be trained who is a safety and health officer;
+ Not exceeding VND 300,000 per person, for the person to be trained who is a manager responsible for occupational safety and health or a health worker;
+ Not exceeding VND 600,000 per person, for the person to be trained who does work subject to strict occupational safety and health requirements;
+ Not exceeding VND 700,000 per person, for the person to be trained who is a person responsible for doing occupational safety and health work.
- The financial assistance in periodic training shall not exceed 50% of that in initial training prescribed above (previously, this assistance shall not exceed 30% of service costs of training in occupational safety and hygiene as regulated).
9. Extending the time limit for issuing the decision on providing financial assistance in occupational safety and health training
According to Article 36 of Decree No. 88/2020/ND-CP, within 15 working days from the receipt of a valid and sufficient application, the Department of Labor, War Invalids and Social Affairs shall appraise it and issue a decision to provide assistance and send the decision (enclosed with a list of employees receiving the assistance) to the social security office. In the case of refusal, a written explanation shall be provided to the applicant.
Thus, the time limit for the Department of Labor, War Invalids and Social Affairs to appraise the application and issue a decision on providing financial assistance is within 15 working days (previously, this time limit was within 15 working days).
10. Preparation of a plan on financial assistance in risk prevention and sharing with respect to occupational accidents and diseases
According to Article 38 of Decree No. 88/2020/ND-CP, preparation of a plan on financial assistance in risk prevention and sharing with respect to occupational accidents and diseases is prescribed as follows:
- On an annual basis, before June 01, every Department of Labor, War Invalids and Social Affairs of province or central-affiliated city and relevant agencies shall forecast demands for use of financial assistance in career change and risk prevention and sharing and expenses for management of occupational accident and disease of the subsequent year and prepare a proposal plan according to the Form No. 13 in the Appendix hereof and send it to the Ministry of Labor, War Invalids and Social Affairs for consideration and decision.
- The making of estimate, allocation, management, use and provision of funds from the Insurance Fund shall comply with the Prime Minister’s regulations on regimes for financial management of social insurance, health insurance, unemployment insurance and expenses for management of social insurance, health insurance and unemployment insurance.
This is a completely new regulation compared to the previous one. Besides, Article 44 of Decree No. 88/2020/ND-CP stipulates that employers shall have the following responsibilities: fully pay occupational accident and disease insurance premiums for employees in accordance with law; promptly prepare applications for benefits provided from the Insurance Fund to employees; etc.
These are the noteworthy new points regarding the regime of occupational accidents and occupational diseases from September 15, 2020. These new regulations are beneficial for employees as they provide additional appropriate support systems to protect workers, especially in cases of occupational accidents and occupational diseases.
Le Vy
