Most Read Contributor in Hong Kong, September 2016
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.
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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
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