Mandatory Provident Fund Schemes Authority

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ENFORCEMENT

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.

A "Reminder to Employer", stating that if an employer fails to make the mandatory contributions to the approved trustee on time, the MPFA is empowered by the law to impose a financial penalty of $5,000 or 10 % of the default contribution, whichever is the greater, has been issued with surcharge notice to defaulting employers. The reminder also says that the Authority 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 enrol their employees into an MPF scheme, or fail to make contributions for their employees. The maximum penalty is a fine of $100,000 and six months' imprisonment on the first occasion of conviction and a fine of $200,000 and one year's imprisonment on each subsequent occasion on which the employer is convicted of the offence. Other offences include making false or misleading statements, obstructing an authorised person in the exercise or performance of a function conferred or imposed on that person under the Mandatory Provident Fund Schemes Ordinance, and so on.
 
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