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How much does a workplace accident cost?

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According to the Occupational Safety Act, the employer is obliged to ensure working conditions that do not endanger health and are safe. This includes preparing a risk assessment document that quantitatively and qualitatively evaluates the risks associated with the working environment, equipment, and processes. Employers must also provide occupational safety training for their employees, covering work regulations, the use of personal protective equipment (PPE), and related risks. The more attention the employer devotes to these obligations, the lower the chance of a workplace accident—though accidents can still occur.

If a workplace accident happens, the cost depends on the severity of the injury. In the case of a serious accident, the occupational safety authority will conduct an investigation, which may result in fines, suspension of equipment or activities, and mandatory corrective measures—all of which can be expensive.

The number of lost working days also depends on the severity of the injury. This could range from a few days to several months. In the case of a micro or small business, this can cause a significant financial burden, as the employer must find a way to replace the lost labor. Hiring and training a new employee is time-consuming, while reorganizing internal work or redistributing tasks often leads to a decline in efficiency.

In addition to the above costs, the employer is often required to pay compensation—such as for damaged clothing, medication costs, lost income of a family member providing care, non-material damages, etc.

As if that weren’t enough, a few years later, the relevant Government Office may launch a reimbursement procedure, in which they assess the employer’s liability in the accident. If liability is confirmed, the sick pay already paid to the employee must be reimbursed to the state by the employer.

When all of these factors are taken into account, a workplace accident that results in just six weeks of sick leave can end up costing the employer several million forints.

In Hungary, the total costs of sick pay and lost income due to workplace accidents in 2021 amounted to approximately 21 billion HUF.

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