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The Mandatory Provident Fund Schemes Authority (MPFA) has successfully pursued a claim of some $47,000 on behalf of 11 employees of a clothing company against their employer, who failed to pay mandatory provident funds contributions between last December and May this year. The amount claimed also included payment surcharges for default contributions calculated at a rate of 20 per cent per annum.
This first case filed by the MPFA at the Small Claims Tribunal was heard today (27 November) before Adjudicator Mr. George Own. A representative appeared on behalf of the defendant company, Super Warm International Limited. The amount claimed was not disputed. The Adjudicator ordered that the defendant company to pay $47,847.95 being mandatory contributions arrears and surcharges. The amount will be reimbursed to the MPF accounts of individual members. An amount of $1,280 for disimbursement was also awarded.
The MPFA earlier received complaints from staff who reported that their employer had failed to make MPF contributions. Two payment notices, issued on July 2001 and 9 August 2001, requiring the defendant to settle the contributions arrears together with contribution surcharges, were ignored.
According to s18 of the Mandatory Provident Fund Schemes Ordinance, when a mandatory contribution is not paid within the prescribed period, it becomes debt due to the MPFA. The Authority may, by proceedings brought in a court of competent jurisdiction, recover that arrear as a debt due to the Authority, together with the contribution surcharge payable.
An MPFA spokesman said: "In dealing with default contributions cases, the MPFA will issue payment notices to default employers, and provide them with assistance if required in order to rectify the default. Unrepentant employers may be prosecuted. Depending on the circumstances of individual cases, the MPFA will consider pursuing claims on behalf of the employees to recover default contributions."
End/Tuesday, November 27, 2001
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