When a labor accident occurs, is the labor subleasing enterprise or the labor subleasing party responsible for compensation?

What are the rights and obligations of a labor subleasing company according to the latest current regulations?

According to Article 57 of the 2019 Labor Code, the specific rights and obligations of the labor subleasing party are specified as follows: following:

“Article 57. Rights and obligations of the outsourcing party

1. Notify and guide the subleased employees to know their internal labor rules and other regulations.

2. Do not discriminate in terms of working conditions for subleased employees compared to their own employees.

3. Agreement with the subleased employee to work at night and overtime according to the provisions of this Code.

4. Agreement with the subleased employee and the labor subleasing enterprise to officially recruit the subleased employee to work for them in case the subleased employee’s labor contract with the labor subleasing enterprise has not ended.

5. Return the subleased employee who does not meet the agreed requirements or violates labor discipline to the labor subleasing enterprise.

6. Provide the subleasing enterprise with evidence of the subleasing employee’s violation of labor discipline to consider handling labor discipline.”

Thus, when hiring employees, your company will have the rights and obligations mentioned above.

What is the maximum duration of labor subleasing for employees?

Article 53 of the 2019 Labor Code stipulates the principles of labor subleasing specifically as follows:

“Article 53. Principles of labor subleasing

1. Duration The maximum term for subleasing labor for employees is 12 months.

2. The subleasing party is allowed to hire labor in the following cases:

a) To temporarily meet a sudden increase in labor demand for a certain period of time;

b) To replace employees during maternity leave or having an occupational accident. labor, occupational disease or must perform civic duties;

c) There is a need to use workers with high professional and technical qualifications.

3. The sub-hiring party is not allowed to use sub-hired workers in the following cases:

a) To replace workers who are exercising the right to strike or resolve labor disputes;

b) There is no specific agreement on the liability for compensation for labor accidents and occupational diseases of subleased workers with the labor subleasing enterprise;

c) Replacing workers who are laid off due to changes in structure, technology, economic reasons or division, separation, consolidation or merger.

4. The subleasing party is not allowed to transfer workers Sublease activities to other employers; do not use sublease workers provided by businesses that do not have a Labor Subleasing License.”

Accordingly, the maximum sublease term for employees is 12 months.

Is the labor subleasing enterprise or the labor subleasing party responsible for compensation when a labor accident occurs?

Pursuant to Article 55 of the 2019 Labor Code, the provisions on labor subleasing contracts are as follows:

“Article 55. Labor subleasing contract

1. The labor subleasing enterprise and the labor subleasing party must sign a written labor subleasing contract made in 02 copies, each party keeps 01 copy.

2. The labor subleasing contract includes the following main contents:

a) Work location, job position to be used, content job specifics, specific requirements for sub-hired workers;

b) Labor sublease term; starting time of the subleased employee;

c) Working hours, rest hours, safety and hygiene conditions at the workplace;

d) Responsibility for compensation for labor accidents and occupational diseases;

dd) Obligations of each party towards the employee.

3. The labor subleasing contract must not have agreements on the rights and benefits of the employee that are lower than the labor contract that the labor subleasing enterprise signed with the employee.”

Thus, the responsibility for compensation when a labor accident occurs will be agreed between the labor subleasing party and the labor subleasing party and will be specifically stipulated in the labor subleasing contract. Therefore, when a worker from the company you hire has an occupational accident at the company’s workplace, compensation liability will be determined according to the specific provisions in the labor subleasing contract.

If an enterprise does not agree on liability for compensation for labor accidents, can it use subleased labor?

In Clause 3, Article 53 of the 2019 Labor Code, the principles of labor subleasing are specified as follows:

“3. The subleasing party is not allowed to use subleased labor in the following cases:

a) To replace workers who are exercising the right to strike or resolve labor disputes;

b) There is no specific agreement on the liability for compensation for labor accidents or occupational diseases of subleased workers with the labor subleasing enterprise;

c) Replace workers who are laid off due to changes in structure, technology, economic reasons or division, separation, consolidation or merger.”

Thus, if the labor subleasing enterprise does not have a specific agreement on the labor accident compensation liability of the subhired employee with the labor subleasing enterprise, that enterprise will not be allowed to use the subleased labor.