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Industry Schemes

For employer in the construction and catering industries

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Offences and Penalties


Many employer obligations are legal requirements stipulated in the Mandatory Provident Fund Schemes Ordinance (“MPFSO”). Failing to comply with such requirements may constitute a criminal offence. The MPFA may file a civil claim on behalf of employees to a court of competent jurisdiction to recover contributions in arrears. It may also initiate prosecution against employers, including their officers, directors and partners, who fail to comply with MPFSO. The following are some common offences under MPFSO and the relevant penalties.

Type of Employer Non-compliance Penalty
Failure to enrol employees in an MPF scheme Maximum penalty of a $350,000 fine and imprisonment for three years
Failure to pay mandatory contributions to trustee (without deducting 5% from employees’ relevant income) Maximum penalty of a $350,000 fine and imprisonment for three years
Failure to pay mandatory contributions to trustee (having deducted 5% from employees’ relevant income) Maximum penalty of a $450,000 fine and imprisonment for four years
Providing false or misleading information in monthly pay-records given to employees Maximum penalty of a $100,000 fine and imprisonment for one year on the first conviction; $200,000 fine and imprisonment for two years on each subsequent conviction
Providing false or misleading information to MPF trustees or MPFA Maximum penalty of a $100,000 fine and imprisonment for one year on the first conviction; $200,000 fine and imprisonment for two years on each subsequent conviction

The MPFA may also impose a financial penalty on employers who fail to comply with the following legislative requirements.

Type of Employer Non-compliance Penalty
Failure to pay mandatory contributions to trustee on time Financial penalty of $5,000 or 10% of the amount due, whichever is greater
Failure to provide monthly pay-records to employees Financial penalty of $10,000 for first failure, $20,000 for second failure and $50,000 for subsequent failures
Failure to notify trustee in writing of an employee’s cessation of employment Financial penalty of $5,000 for first failure, $10,000 for second failure and $20,000 for subsequent failures
Failure to notify trustee in writing of changes in employer information such as company name, address and telephone number Financial penalty of $5,000 for first failure, $10,000 for second failure and $20,000 for subsequent failures