New law from November: MPF default contributions defying court orders risk HK$350,000 fine, 3 years’ jail

This article is a rewrite of a report from October 2012.

Employers must contribute to MPF on time. Most complied, but a minority deliberately defaulted, short-changing employees. Legco passed amendments toughening penalties — effective November 1, 2012.

Ignoring a court order: HK$350,000 fine plus 3 years’ jail

The new provision made it an offence for employers to defy a civil court order to pay MPF arrears and surcharges.

The MPFA pursued arrears through civil action on employees’ behalf; courts ordered payment, and the MPFA channelled recovered sums into employees’ accounts. But some employers simply ignored the orders.

After the amendment, such employers faced prosecution and, on conviction:

• A maximum HK$350,000 fine and 3 years’ imprisonment
• Plus HK$500 per day for each day the arrears stayed unpaid

Persistent late payment: up to HK$700 a day

Another new provision targeted chronic late payers: employers who missed the 10th-of-the-month deadline for remitting employer and employee contributions to the trustee faced up to HK$700 per day.

The existing maximum for deducting employees’ wages without making mandatory contributions was HK$450,000 and four years’ jail; the daily fine added real deterrent force. This provision also took effect November 1.

How could employees protect themselves?

The MPFA reminded workers to check their employer had enrolled them and was contributing on time — and to report any failure immediately (hotline: 2918 0102).