MPFA Enforcement

The overriding objectives of enforcement by the MPFA are to protect employees' MPF rights and benefits, and to uphold the integrity and credibility of the MPF System.

Proactive inspection of employment premises 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.

Employees are encouraged to report to the MPFA as soon as possible if they suspect their MPF rights and benefits have been infringed. The MPFA will investigate all complaints received. Complainants will be notified of the case results as soon as we have completed our investigation and follow-up action.

To make enforcement action even more effective, the MPFA takes the following measures against non-compliant employers, including those who are found to have evaded payment of MPF contributions, deducted employer contributions from an employee's pay, or failed to enroll their employees in an MPF scheme:

(a).	Direct Contact with Employers
	When non-compliance is found via proactive inspections, employees' complaints or trustees' reports, the MPFA promptly contacts the employers concerned and urges them to rectify the situation. A 5% surcharge is imposed on default contributions. The MPFA follows up cases of non-compliance as soon as possible to protect scheme members' MPF interests.
(b).	Financial Penalty
	Employers are required to perform their duties in accordance with the requirements specified in the legislation. As empowered by the legislation, the MPFA may impose financial penalties on non-compliant employers. The MPFA has stepped up its enforcement action against non-compliance. Employers failing to comply with the legislative requirements may be liable to financial penalty without any notice. Employers are reminded to take note of the following when handling MPF matters:
	Make contributions for relevant employees on time An employer must ensure that contributions in respect of each relevant employee for each contribution period are paid to the approved trustee on or before the contribution day (i.e. the 10th day of the following month). A non-complying employer is liable to a financial penalty of HK$5,000 or 10% of the amount due, whichever is greater. Provide monthly pay-records to scheme members (except for casual employees under an Industry Scheme) An employer must give monthly pay-records to relevant employees not later than 7 working days after the contribution payment. A non-complying employer is liable to a financial penalty of HK$10,000 on the first occasion and up to HK$50,000 for subsequent failures. Notify the approved trustee of an employee's cessation of employment (except for casual employees under an Industry Scheme) An employer must inform the trustee in writing of an employee’s cessation of employment and the date on which the employment ceased, or provide such information in the remittance statement for the contribution period that ends immediately following the employee's cessation of employment. A non-complying employer is liable to a financial penalty of HK$5,000 on the first occasion and up to HK$20,000 for subsequent failures.
(c).	Civil Claim and Criminal Prosecution
	The MPFA may file a civil claim on behalf of employees to a court of competent jurisdiction to recover contributions in arrears and any surcharges. It may also initiate prosecution against employers, including their officers, directors and partners of the companies, who fail to comply with the Mandatory Provident Fund Schemes Ordinance.
	An employer who fails to enroll his employees in 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 maximum penalty of a 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.