Work Accidents Involving Leased Labor in Vietnam: Who Is Liable?

Short answer: When a work accident occurs to a leased employee, the labor-leasing enterprise — as the employer (the party signing the labor contract) — is the party with liability to compensate and provide allowances to the employee under the Labor Code 2019 and the Law on Occupational Safety and Hygiene 2015. The lessee is responsible for ensuring occupational safety and hygiene conditions at the workplace, notifying and instructing on internal rules, and coordinating and reimbursing the labor-leasing enterprise where the fault lies with the lessee.

Legal basis

• Labor Code 2019 — Articles 52–57 (labor leasing);
• Law on Occupational Safety and Hygiene 2015 — compensation and allowance liability in work accidents.

Allocation of liability in work accidents

Labor-leasing enterprise

• Is the direct employer of the leased employee (signs the labor contract, pays wages, contributes to social insurance);
• Bears compensation and allowance liability to the employee suffering a work accident under the Law on Occupational Safety and Hygiene;
• Carries out declaration and investigation of work accidents as prescribed.

Lessee

• Has the obligation to notify and instruct the leased employee on labor rules and safety procedures (Article 57, Labor Code 2019);
• Ensures occupational safety and hygiene conditions where the leased employee works; no discrimination in working conditions;
• Where the accident is caused by the lessee’s fault (failure to ensure workplace safety), the lessee must reimburse the labor-leasing enterprise and may be handled under the terms of the labor-leasing contract.

Handling sequence (overview)

1. First aid and emergency care for the victim; scene preservation;
2. Declaration of the work accident to the competent authority;
3. Investigation of the accident’s cause (with participation of the parties);
4. Determination of reduced working capacity, implementation of compensation, allowances, and social insurance benefits;
5. The parties settle reimbursement liability under the labor-leasing contract.

Key notes

• The labor-leasing contract should clearly stipulate safety assurance responsibilities and the reimbursement mechanism between the two enterprises;
• Labor leasing is a conditional business line — only licensed enterprises may operate it.

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How ANT Legal can assist

ANT Legal advises on labor leasing, handling of work accidents, and resolution of compensation liability disputes. For advice on your specific case, please contact our lawyers at 0966.475.966.