Start-up employers’ MPF duties (part 2): display the participation certificate, issue monthly contribution records

The previous column explained that new employers must not only enrol employees in MPF schemes and contribute on time, but fully discharge all employer duties under the MPF legislation. This instalment continues with the key non-contribution duties, helping aspiring entrepreneurs handle administration while growing the business.

What must employers do with the participation certificate?

Employers must display the “participation certificate” at their principal place of business. After submitting all documents to the trustee, employers receive a “notice of acceptance of participation” within 30 days; once the trustee forwards the data to the MPFA, the authority issues the participation certificate via the trustee. Changes to company name, address or phone number must be notified to the trustee within 30 days of taking effect.

When must employers enrol employees?

Employers must arrange enrolment within 60 days of the employment start date. Employees generally receive a “member certificate” from the trustee within 30 days; if the employer asks the trustee to hand it to them, the employer must pass it to the employee within 7 working days of receipt.

What other record-keeping duties apply?

Employers must prepare a monthly contribution record and give it to employees within 7 working days after each mandatory contribution, showing relevant income, employer and employee contribution amounts and payment dates — failing to issue it is an offence. Employers must also keep employees’ MPF documents for 7 years, and notify the trustee in writing when an employee leaves, no later than the contribution day of the contribution period in which employment ends. Aspiring entrepreneurs should study employers’ MPF duties and how MPF schemes operate.