Employers beware: MPF defaulters have nowhere to hide

What is the MPFA’s record of non-compliant employers?

Under MPF employer obligations Hong Kong, employers must enrol staff and pay contributions on time — defaulters have nowhere to hide. The MPFA’s “Register of Defaulting Employers and Officers”, launched on its website in May 2011, is a public register carrying civil judgments and criminal convictions under the MPF legislation over the past five years. It names the offending companies and senior officers, with business registration numbers and offence details; employers convicted twice or more in five years land on a separate “repeat offenders” list.

How can employees protect themselves?

At a school reunion, Ah Jik hears Siu-ho’s complaint: his employer kept defaulting on MPF contributions, and repeated confrontations got nowhere — so he reported the employer to the MPFA, which is now recovering the arrears, while he quit to find a new job. “Lesson learned,” Siu-ho says. “Now I check whether a prospective employer has defaulted on MPF before I join.”

The MPFA notes most employers comply with the law; only a minority dodge their contribution duties, some assuming staff dare not report them. In fact, once the MPFA receives a report, it pursues arrears for employees through various channels, including civil claims against employers — and even criminal prosecution.

Check before you join, check before you hire

The advice: look up the register before taking a job, to see whether a prospective employer has faced MPFA recovery action or convictions for MPF default contributions; companies choosing service contractors can likewise check counterparts’ track records. Employers should remember that business runs on trust — dodging MPF duties is not only illegal, but landing on the public register damages reputation and costs business. For reporting and recovery procedures, see the MPF employee rights guide.

— MPFA “Ah Jik” column