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Construction Industry Sub-Contractors Reminded of MPF Liabilities

Sub-contractors and independent contractors in the construction industry are reminded today (October 28) that they must register with a Mandatory Provident Funds (MPF) scheme within the next five weeks.

Non-compliance with the MPF Schemes Ordinance after December 1 this year is liable to a maximum fine of $100,000 and imprisonment of six months.

Speaking at the "MPF for Construction Industry" event at a construction site at MTR Kowloon Station this afternoon, Mr Lee Kai-ming, Chairman of the Industry Schemes Committee of the Mandatory Provident Fund Schemes Authority (MPFA), urged employers to act as soon as possible.

In view of the high labour mobility and the daily wages practice within the construction and catering industries, Industry Schemes have been established to make MPF participation as convenient as possible for the employers and to offer retirement protection to both regular and casual employees in these industries.

"To protect your own interests, construction workers should make use of the special arrangement under Industry Schemes by taking the initiative in registering with both of the two approved Industry Schemes before December 1," he added.

He noted that the Works Bureau, the Hong Kong Construction Association and the Hong Kong Real Estate Developers Association have each issued a Guidance Note to Tenderers, reminding tenderers that contractors at any tier should join a relevant MPF scheme and make contributions to their workers as required by the law.

In order to promote the MPF Industry Schemes in the construction industry, the Labour Department is drafting a simple standard contract and wage record for use by employers and employees in the industry.

The Commissioner for Labour, Mrs Pamela Tan, who was the guest of honour at today's event, said, "The drafting of the documents is expected to be completed in December after collecting views within the industry and will be widely used by the industry next year.

" Representatives of workers unions, trade associations and Labour Department at the Tripartie Committee on Construction Industry have agreed to promote the use of written contract in the industry, which will facilitate the implementation of the MPF Industry Scheme, Mrs Tan said.

Contractors of various trades in the construction industry and some 200 workers attended today's function jointly organised by the MPFA and Hip Hing Construction Company Limited. Most of them signed up on site with the two trustees operating Industry Schemes.

"It is our legal obligation as an employer to enroll employees in an MPF scheme. But more importantly, we want our workers to know that we care about them. This is the key to good employment relationship," said Mr K L Chan, Managing Director of Hip Hing Construction Co. Ltd.

"We have already registered with an MPF scheme to cover some 2,900 employees and we have asked our sub-contractors to make necessary arrangements for their workers," Mr Chan added.

Other guests attending today's event at the construction site were the Deputy Managing Director of the MPFA, Mr Alan Wong; the President of the Hong Kong Construction Association, Mr Tse Lai-leung; the Executive Director of Construction Industry Training Authority, Mr Tong Yat-chu; Consultant of the Hong Kong Construction Industry Employees General Union, Mr Poon To-chuen; the Executive Director and Deputy Chief Executive of Bank of East Asia, Mr Chan Kay-cheung; the Managing Director and CEO of Bank Consortium Trust, Mr Stephen Siu; and the Executive Director of MPFA, Mr Ernest Lee.

End/Saturday, October 28, 2000