Info Center

To better protect the MPF rights of employees, the Mandatory Provident Fund Schemes Authority (MPFA) has started to take more stringent actions against employers who have violated the MPF legislation.  Apart from stepping up on-site inspections and prosecution actions, the Authority has initiated civil proceedings by filing claims with the District Court and High Court on behalf of employees to recover default MPF contributions from their employers.

As at mid-December 2004, the MPFA has filed 37 default MPF contribution claims with the District Court on behalf of over 700 employees.  The MPFA has also filed two claims with the High Court to recover default MPF contributions amounting to over $3 million against two employers.

A spokesperson for the MPFA said: ?In the past, the MPFA helped employees to recover their defaulted MPF contributions mainly through the Small Claims Tribunal where the maximum claim limit is $50,000.  Any claim over this sum needs to be initiated in the District Court or High Court.  We believe recovery proceedings at the District Court or High Court would enhance the efficiency of the claim process and have greater deterrent effects on non-complying employers.

"Although at present there are only a few cases eligible for the High Court action, the MPFA believes there is the need to strengthen its enforcement actions.  Our experience shows that employers would take a serious view when a District Court or High Court action has been filed against them.  In many cases, employers involved would approach the MPFA to discuss repayment plans and settle the outstanding MPF contributions before hearing."

The spokesperson stressed that according to the Mandatory Provident Fund Schemes Ordinance, employers are obliged to enroll eligible employees to MPF schemes, and make a monthly contribution equivalent to five per cent of employees' relevant income.  Otherwise they would have breached the Ordinance that expose them to the maximum penalty of a fine of $100,000 and imprisonment for six months.

The spokesperson pointed out that most of the employers in Hong Kong are law-abiding.  Only a few employers committed MPF offences repeatedly and refused to make rectification.  But MPF is about retirement protection of Hong Kong's working population, the MPFA will continue its enforcement efforts in a fair and just manner.

The spokesperson reminded scheme members to regularly check the contribution records of their MPF accounts, and report to the Authority as early as possible if default contribution is found.  They should also serve as witnesses as and when necessary to protect their own interests.

On the other hand, a special task force of the MPFA's Complaint and Investigation Department has identified and completed investigations into over 200 cases of repeated offender from the 2,000 default contribution cases reported by MPF trustees, and recovered over $4 million MPF contributions in arrears and surcharges payable.  In the remaining cases, the MPFA found that many of them related to the employers being wounded up without informing their trustees, or the trustees have issued wrong default contribution reports as contribution records had not been updated timely.

End/Monday, 27 December, 2004