First Community Service Order for MPF Default Contributions

In December 2011, Kowloon City Magistrates’ Courts sentenced an employer to 60 hours of community service for defaulting on MPF contributions — the first employer to receive such a sentence. The case exposed a common violation of the era: the employer deducted 5 per cent from the employee’s wages as MPF employee contributions but never paid anything to the trustee. The MPFA hoped the ruling would strengthen deterrence.

What happens to employers who default on MPF contributions?

Under the MPF legislation (as of 2011), an employer who fails to enrol an employee or defaults on contributions faces up to HK$350,000 in fines and three years’ imprisonment; deducting contributions from wages without paying them to the trustee carries up to HK$450,000 and four years. In December 2011, one employer received 60 hours of community service for such offences.

The Case: HK$5,600 Deducted, Zero Contributed

The head of a marketing company hired a beautician but failed to enrol her in an MPF scheme within 60 days of employment. He deducted five per cent from her wages as employee contributions yet never made any MPF payment, owing her over HK$5,600 in total.

Convictions Tripled in Five Years

The MPFA said convicted defaulting employers rose from 58 in 2006 to 198 in 2010, reflecting steadily tougher enforcement. This community-service ruling was intended as a deterrent signal to non-compliant employers.

Protecting Yourself: Check Payslips and Contribution Records

For employees, this 2011 case is a reminder: employers must enrol staff within 60 days and contribute on time. Employees should regularly check payslips and trustee contribution records — and contact the MPFA promptly if deductions appear but contributions do not.