Mandatory Provident Fund Schemes Authority v. Raschel Products Ltd t/a Ashong Kong Warp Knitting Manufacturing Co (DCCJ4176/2011)

The Mandatory Provident Fund Schemes Authority (“MPFA”) issued proceedings against a company for penalties under the Mandatory Provident Fund Schemes Ordinance for the company’s failure to enroll an employee into an MPF scheme and to make MPF contributions for the employee. The employer sought to argue that the employee had in fact resigned and produced a resignation letter to this effect. However, the District Court found that the employer had continued to pay the employee over the subsequent years and the employee continued to sign documents on behalf of the company, therefore it was held that the employment relationship continued and the company was liable for failing to enroll him into a MPF Scheme and make contributions towards it.