What Happens When Employers Fake “Self-Employment”?

How was the 2011 truck-driver case decided?

In February 2011, a cross-border trucking firm made driver Mr Lam set up a sole proprietorship and sign away his employment status to dodge MPF contributions; the MPFA prosecuted and the firm pleaded guilty, fined HK$14,000. The evidence showed Lam still took company-assigned jobs only, was paid monthly on a split basis, couldn’t refuse work, while the company paid all maintenance, insurance, licence, fuel and toll costs — Lam bore no financial risk and had no management say. An employee in all but name.

Is self-employment whatever the employer says?

No. The MPFA stressed substance over paperwork: who assigns the work, who bears financial risk, how much autonomy the worker has.

How can workers protect themselves?

If asked to go “self-employed” while the job stays the same, complain to the MPFA. And learn to read your own MPF account — start at MPF fund comparison.