Information Centre

MPF is one of the most important forms of retirement protection for employees. Except for certain exempt persons stipulated in the MPF Scheme Ordinance (MPFSO), employers are required to enrol both full-time and part-time employees aged 18 to 64 who have been employed for a continuous period of 60 days or more in an MPF scheme within the first 60 days of their employment.   The 60-day period is counted by calendar days (including holidays) instead of working days or hours and determined by the employment relationship between the employee and employer, covering both full-time and part-time employment. However, there are employers trying to avoid their MPF obligations by deliberately breaking an employee’s employment term into short periods of less than 60 days each. This is not only illegal but would also undermine the retirement protection of employees. 

In a real case recently handled by the MPFA, an employee complained against his former employer who had violated the statutory requirements by not enrolling him in an MPF scheme and not making MPF contributions during his employment as a security guard. In the process of the investigation, the MPFA found that the employer had signed a series of 11 short-term employment contracts (each with a contract term of 59 days) with the complainant. In one of the contracts, the complainant worked for 68 days without being enrolled in any MPF scheme nor having any MPF contributions made by his employer. With sufficient evidence, the MPFA referred the case to the Police for prosecution. The employer eventually pleaded guilty and was convicted and fined by the court.

The MPFA reminds employers not to evade their MPF obligations by intentionally breaking up an employee’s employment term into periods of less than 60 days. If an employer and employee enter into a series of such short term employment contracts and there is evidence that the employment relationship has lasted more than 60 days, the employer must enrol the employee in an MPF scheme and make contributions. Employers in the construction and catering industries should enrol casual employees in an MPF scheme selected by the employer even if employees are employed only on a day-to-day basis or for a fixed period of less than 60 days. If an employer fails to enrol an employee in an MPF scheme on time, the employer is liable to a maximum fine of $350,000 and imprisonment for three years.