The prime objective of the enforcement work of the Mandatory Provident Fund Schemes Authority (“MPFA”) is to ensure compliance with the Mandatory Provident Fund Schemes Ordinance (“MPFSO”) (Chapter 485, Laws of Hong Kong), as well as to uphold the integrity and credibility of the MPF System.
To achieve this objective, MPFA detects non-compliance by investigating complaints and proactively inspecting employers’ premises. Enforcement measures are taken against non-compliant employers who are found to have evaded payment of MPF contributions, deducted employer’s contributions from an employee's pay, or not enrolled their employees in an MPF scheme. These measures may include:
|(a)||contacting the employer directly, and persuading them to rectify the situation;|
|(b)||imposing a contribution surcharge of 5% on defaulting employers;|
|(c)||filing a civil claim in a court of competent jurisdiction to recover mandatory contributions and surcharge in arrears;|
|(d)||imposing a financial penalty on non-compliant employers; and|
|(e)||prosecuting non-compliant employers or persons, including directors of limited companies who breach MPFSO.|
As an employee, you are encouraged to report to MPFA as soon as possible if you suspect your right to MPF benefits has been infringed. The MPFA will investigate all complaints received. You will be notified of the results as soon as we have completed the investigation.
The MPFA proactively inspects employment establishments or business premises to check on and uncover non-compliance. It is also an educational programme to explain to employers and employees certain MPF rules and regulations. Different districts and trades may be selected and inspection may be organized in cooperation with other enforcement agencies, such as the Labour Department.
The MPFA calls on employers to abide by the law in handling their MPF matters. Financial penalties may be imposed on employers who fail to comply with the MPFSO and Mandatory Provident Fund Schemes (General) Regulation (Chapter 485A, Laws of Hong Kong). The MPFA reserves the right to initiate legal proceedings against such employers to recover the financial penalty.
The MPFA may impose a financial penalty of $5,000 or 10% of the default contributions, whichever is the greater, on defaulting employers.
Failure to submit notice of termination (except for casual employees under Industry Schemes)
The MPFA may impose a financial penalty of $5,000 on the first occasion and up to $20,000 for subsequent failures on an employer who fails to notify trustees of an employee’s cessation of employment in writing.
Failure to provide monthly pay-record (except for casual employees under Industry Schemes)
The MPFA may impose a financial penalty of $10,000 on the first occasion and up to $50,000 for subsequent failures on an employer who fails to provide monthly pay-records to scheme members no later than seven working days after making MPF contributions.
Failure to submit remittance statement
The MPFA may impose a financial penalty of $10,000 on the first occasion and up to $50,000 for subsequent failures on an employer who fails to submit completed remittance statements to trustees when making contributions.
The MPFA may initiate prosecution against an employer or its responsible director who fails to comply with MPFSO, or against a scheme member who provides false information on his claim for early withdrawal of MPF benefits.
Failing to enrol
An employer who fails to enrol his relevant employee in an MPF scheme is liable to a maximum fine of $350,000 and three years’ imprisonment.
Failing to make contributions
An employer who fails to pay contributions for his employee is liable to a maximum fine of $350,000 and three years’ imprisonment. If the employer also deducts the employee’s mandatory contributions from the wages of the employee but fails to pay them to the trustee or MPFA, he is liable to a heavier fine of $450,000 and four years’ imprisonment.
Providing false information
Furthermore, if an employer provides false or misleading information to MPFA, to an approved trustee or in pay-records given to the employee, he is liable to a maximum fine of $100,000 and one year’s imprisonment on the first conviction, and to a fine of $200,000 and two years’ imprisonment on each subsequent conviction. If a scheme member provides false or misleading information to an approved trustee in his claim for early withdrawal of MPF benefits, he is liable to the same penalty.