Hi Guys
I thought I would just share a piece of information that I received yesterday for the first time.
It has come to my attention that if a person is laid off in HK or given long term severance pay, the company they worked for is allowed to claim this back from the empoyees MPF account.
Frankly i find this pathetic and another example of where this corporate pandering government seems to show no protection to the small person
Hopefully this will not affect to many of us, but it will certainly affect some people and makes a mockery of the whole reason why this silly MPF fund was set up in the first place.
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I wouldn't go as far to say it is a rip off, but rather a poor system.
I agree the employer should not be able to withdraw funds from the MPF. I am not able to withdraw funds so why should an employer?
Yes they are only withdrawing funds that they have paid and not yours, but it should have been set up that no one can withdraw funds.
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I just don't think this is right, this would not happen in more developed places. If we can not take out the MPF then why should an employer be able to claim back the portion he has paid. I believe any long term severance or redundancy should be treated separately
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This happened to a friend of mine. She worked for a company for many years, up to until the business folded, and then she found out the bosses could - and would - deduct her LSP from her MPF account. In the end she received less than one month's salary's worth in compensation if I remember right.
This is like sending your child to school in the morning with HKD20 to buy breakfast - and then tell the kid that the same 20 dollars has to be used for buying lunch as well! It's like Christian says, the MPF contributions and the SP/LSP indeed should be treated separately. But hey, this is HK with its magnificent government...
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