Hanoi, 30 December 2025
In addition to obligations relating to occupational safety and hygiene (“OSH”) for employees as set out in Part 1, enterprises are also required to implement measures for handling incidents that compromise OSH, labour accidents, and occupational diseases, as well as to ensure the participation in labour accident and occupational disease insurance (“LAOD Insurance”) for employees. As one of the statutory OSH obligations, participation in LAOD Insurance is a mandatory responsibility of enterprises, as prescribed under the Labour Code, the Law on Occupational Safety and Hygiene 2015 (“OSH Law”), and the Law on Social Insurance 2024. Implementing regulations, including Decree No. 88/2020/ND-CP and Decree No. 58/2020/ND-CP (“Decree 58”), provide detailed guidance on this insurance regime, with the aim of protecting employees’ health and lawful interests in the event of labour accidents or occupational diseases. Accordingly, enterprises’ obligations and responsibilities in relation to LAOD Insurance, as well as preventive measures and response mechanisms applicable upon the occurrence of incidents or accidents in the workplace, are specifically stipulated as follows:
Notification, investigation, statistics, and reporting of labour accidents and occupational diseases
Enterprises are required to develop and promulgate incident response and emergency rescue plans for the workplace; organize incident handling and emergency response activities; establish emergency response teams; and promptly report to competent persons upon detecting risks or upon the occurrence of labour accidents or technical incidents causing serious threats to OSH that exceed the enterprise’s control capacity.
Enterprises must also compile statistics on and report labour accidents and serious technical incidents causing threats to OSH occurring at their establishments, and submit periodic reports on a semi-annual and annual basis to the provincial management authority in charge of labor.
In the event of a labour accident, enterprises shall conduct an investigation, identify the causes, and implement remedial measures to prevent similar accidents from occurring in the future. With respect to occupational diseases, enterprises must annually prepare statistics and submit reports on occupational disease prevention and control to the provincial health management authority.
Participation in LAOD Insurance for employees
Contribution rates for LAOD Insurance
Enterprises are required to make monthly contributions based on the employee’s salary, which serves as the basis for compulsory social insurance contributions, at the contribution rates prescribed by law from time to time. Currently, the applicable contribution rate ranges from 0.3% to 0.5%, depending on the specific circumstances.
Subjects required to participate in LAOD Insurance
Pursuant to Decree No. 58/2020/ND-CP and the Law on Social Insurance 2024, enterprises are required to make contributions to LAOD Insurance for the following subjects:
- Employees being Vietnamese citizens, including:
- employees working under indefinite-term labor contracts or definite-term labor contracts with a term of at least one (01) month, including cases where the employee and the enterprise enter into an agreement under a different title but the contents thereof reflect paid work, remuneration or wages, and the management, administration, and supervision of the enterprise;
- salaried enterprise managers;
- employees specified in item (i) above who work on a part-time basis and whose monthly salary is equal to or higher than the minimum salary serving as the basis for compulsory social insurance contributions;
- Foreign employees working in Vietnam who are employed under definite-term labor contracts with a term of at least twelve (12) months with enterprises, except for certain cases prescribed by law, such as intra-corporate transferees.
Responsibilities towards employees suffering from labour accidents or occupational diseases
Enterprises must fully discharge their responsibilities in cases where employees suffer from labour accidents or occupational diseases, including, inter alia: providing timely first aid and emergency medical treatment; covering medical expenses; paying full salaries in accordance with law; paying compensation or allowances as prescribed; arranging suitable work; and preparing and submitting dossiers for employees to enjoy benefits for labour accidents and occupational diseases from the Labour Accident and Occupational Disease Insurance Fund.
Administrative sanctions for non-compliance with OSH regulations
Enterprises that fail to properly perform their obligations and responsibilities relating to OSH are subject to administrative penalties in accordance with Decree No. 12/2022/ND-CP. Violations of regulations on OSH assurance measures, prevention of labour accidents and occupational diseases, enterprises’ responsibilities in relation to labour accidents and occupational diseases, the use of machinery and equipment subject to strict OSH requirements, OSH training, and working environment monitoring may result in administrative fines of up to VND 150,000,000, depending on the nature and severity of the violation.
In addition to monetary penalties, enterprises may also be required to implement remedial measures to address the consequences of such violations, with a view to safeguarding employees’ rights and interests and ensuring safety and fairness in the working environment.
Conclusion and recommendations for enterprises
Ensuring OSH and participating in LAOD Insurance for employees constitute key legal obligations of every enterprise. To safeguard employees’ lawful rights and interests and to maintain a safe working environment, enterprises should continuously update themselves on, and fully comply with, applicable regulations on OSH and employee entitlements relating to labour accidents and occupational diseases. In particular, enterprises operating in sectors involving hazardous or harmful factors should place heightened emphasis on preventive measures, incident response, and timely reporting in order to mitigate risks. Proper compliance with OSH regulations not only helps enterprises avoid legal violations but also contributes to the protection of their reputation, assets, and the stability of their business operations.
