Keywords: mandatory provident fund schemes authority, MPFA, mandatory contributions
On 14 December 2012, the Mandatory Provident Fund Schemes Authority (MPFA) successfully obtained judgment against an employer in the District Court for failing to make mandatory contributions in respect of an employee.
The outcome of these proceedings turned largely on the specific facts of the case and, in particular, on whether the individual in question had ceased to be employed at the material time, meaning that the employer would no longer have been liable to make any contributions. However, this case serves as a timely reminder to employers of their obligations to make mandatory contributions to the MPF. Employers are also reminded of the recent change to the maximum level of relevant income. For details, please refer to our update on 28 November 2011, MPF - Amendment to the Maximum Level of Relevant Income, in which we reported on the amendment to the maximum level of relevant income.
If mandatory contributions are not paid in accordance with the timeframe prescribed by the Mandatory Provident Fund Schemes Ordinance, then the outstanding contributions become due for payment to the MPFA. The MPFA may then bring proceedings to recover the amount due as a debt and, at the same time, demand an additional contribution surcharge (which is a percentage of the outstanding amount). For the purpose of this type of proceedings, a certificate issued by the MPFA specifying the amount due, or any contribution surcharge payable in respect of such amount, is, in the absence of evidence to the contrary, proof of the matters specified in the certificate.
Visit us at www.mayerbrownjsm.com
Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2013. The Mayer Brown Practices. All rights reserved.
This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.