Employer’s Liability to Indemnify for Work-related Accidents or Occupational Diseases

On February 2nd, 2015, the Ministry of Labour – Invalids – Social Affairs (MOLISA) has released Circular 04/2015/TT-BLDTBXH (Circular 04), which provides guidelines for employers to indemnify their employees for suffering from work-related accidents or one of the 30 occupational diseases (as given in the Appendix 2 of Circular 04).

In general cases:

Employees who have their working capacity reduced due to work-related accidents or occupational diseases will be entitled to the 3 payments, including: (i) Compensation (as defined in Column I) or allowance (as defined in Column II); (ii) ; and (iii) their wage.

labor law


  • “r” refers to the rate of reduction of working capacity of the employee (ranged between 0% to 100%).
  • “W” refers to the average wage of employees for 6 months preceding the date when the employee has suffered from a work-related accident or occupational disease.
  • Employer shall decide on the compensation or the allowance entitled to the employee within 5 working days from the date of the medical examination report and shall complete payment of compensation or allowance within further 5 days;

In particular cases

  1. If the employer provided health insurance covers a part of the aforementioned payments, the employer shall pay the difference between the minimum level of such payments (as stated in the Table) and the amount paid by the insurer.
  2. In case the employees are subject to the statutory social insurance under the Law on Social Insurance but the employer does not pay insurance premiums for them, the employer shall also pay employees with allowances that are equivalent to the amounts the social insurance regime entitles employees to.

This Circular 04 takes effect from March 20th, 2015

By Vietnam Law Insight, LNT & Partners

Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact us or visit the website: Http://LNTpartners.com

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