11 January 2013
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.