4,000 Delinquent Employers to Be Named Online From Q2 Next Year

The MPFA has decided to publish its “blacklist” of about 4,000 employers convicted by the courts for defaulting on MPF contributions — going live on the MPFA website in the second quarter of 2011, searchable by company name, business registration number or director’s name.

What will the search show?

Five years of convictions, penalties, dates and default counts at a glance. After the 2008 legislative amendment and consultation with the Privacy Commissioner, the MPFA built its own online search system. The database is expected to become a reference for banks assessing corporate reputation, deterring delinquent employers. A company with no fresh conviction for five years gets its record removed.

Which sectors are the worst offenders?

Food and beverage, retail, cleaning, construction and security. One enforcement case: a truck driver was made to set up a sole proprietorship and sign sham self-employment papers, yet worked under company direction in uniform — ruled bogus self-employment, the transport firm convicted. The MPFA has posted four sentenced cases online for employees’ reference; enforcement will still warn employers to make good first, uploading records upon conviction.

What worries SMEs?

A moment of cash-flow trouble could leave a lasting online stain. SME association chairman Lau Tat-bong fears firms with good track records but one bad patch will find business even harder. FTU legislator Wong Kwok-kin counters that with bogus self-employment worsening, putting convictions online is a strong deterrent.