Objective

The overriding objective of enforcement by the MPFA is the protection of employees' MPF rights and benefits, as well as upholding the integrity and credibility of the MPF System.

Enforcement Measures

To achieve this objective, the MPFA applies a number of enforcement measures against non-compliant employers who are found to have evaded payment of MPF contributions, deducted employer contributions from an employee's pay, or not enrolled their employees in any MPF schemes. The following are a few examples:

(a)	Contact the employer directly, and persuade them to rectify the situation;
(b)	Impose a 5% surcharge on default contributions;
(c)	File a civil claim to a court of competent jurisdiction to recover mandatory contributions in arrears;
(d)	Impose a financial penalty on the employer;
(e)	Prosecute non-compliant employers, including directors of limited companies;
(f)	Proactively inspect employment premises.

Handling Complaint

As an employee, you are encouraged to report to the MPFA as soon as possible if you suspect your MPF rights and benefits have been violated. The MPFA will conduct investigations into all complaints received. You will be notified of the investigation results as soon as we have completed our inquiries.

Proactive Inspection

Proactive inspection is a form of enforcement action that the MPFA undertakes to uncover non-compliance. It is also an educational programme for employers and employees to clarify certain MPF rules and regulations. Different districts and trades may be selected and such inspection may be organized in cooperation with other enforcement agencies.

Financial Penalty

To better protect the MPF rights of employees, the Mandatory Provident Fund Schemes Authority (MPFA) has stepped up the imposition of financial penalties on defaulting employers as empowered by the legislation.  The Authority may impose a financial penalty of $5,000 or 10% of the default contribution, whichever is the greater, to defaulting employers.  The Authority also reserves the right to initiate legal proceedings to such employers.

The MPFA called on employers to abide by the law, and to settle all outstanding contributions with their trustees as soon as possible and make contributions within the statutory timeframe.

Prosecutions

The MPFA may initiate prosecution action against employers who fail to comply with the Mandatory Provident Fund Schemes Ordinance. 

An employer who fails to enrol his employees into an MPF scheme is liable to a maximum penalty of a fine of $350,000 and imprisonment for three years.

An employer who fails to pay contributions for his employees is liable to a maximum penalty of a fine of $350,000 and imprisonment for three years.  If the employer has also deducted the employee mandatory contributions from the wages of an employee but failed to pay them to the trustee, he is liable to a heavier fine of $450,000 and imprisonment for four years.

Furthermore, if an employer provides false or misleading information in pay-records given to employees, he is liable to a maximum penalty of a fine of $100,000 and imprisonment for one year on the first conviction; and to a fine of $200,000 and imprisonment for two years on each subsequent conviction.