HK$24,000 Fine for Millions in MPF Arrears: Barrister Urges Tougher Line

A company owing millions in MPF contributions walked away with a HK$24,000 fine. Barrister Luk Wai-hung says the MPFA should seek Court of Appeal reviews of sentences in “bad or serious” MPF default contributions cases, so the court can set sentencing guidelines with real deterrent force — or employers will keep defaulting, even pocketing staff contributions.

How light was the punishment?

Millions owed, HK$24,000 fined — not even a rounding error. One company chronically defaulted on millions in MPF contributions and was fined just HK$24,000. Even High Court deputy judge Chan Hing-wai balked: hearing an MPF-default appeal early this month, he noted in passing that magistrates should weigh the legislature’s wish for tougher crackdowns — LegCo raised the maximum fine to HK$450,000 back in 2008.

How can deterrence be strengthened?

Appeal the sentences, set guidelines — and prosecute executives, not just companies. Luk urges the MPFA to take lenient sentences in egregious cases to the Court of Appeal for review, so deterrent guidelines can be laid down. He also wants senior officers of chronic-default companies prosecuted, since only personal liability deters — though he admits bigger companies make this harder, as executives can plead ignorance.

Is defaulting really that serious?

Yes — hiring even one or two illegal workers can mean immediate jail. Luk argues jailing wilful defaulters is not unreasonable when employing a couple of illegal workers can already draw immediate imprisonment. MPF arrears eat workers’ retirement money — no lighter than other labour offences. Token fines send employers one message: defaulting pays.

To compare charges and returns across MPF funds, visit MPF fund comparison.