Understanding Industry Schemes: How Can the Food Industry Apply?
During peak seasons, many restaurant owners hire short-term workers to assist. At this point, they often ask: Can I avoid enrolling short-term workers in the Mandatory Provident Fund (MPF) if their employment period is less than 60 days?
The answer is no. According to the regulations of the MPF Authority, regardless of the duration of employment, all employers in the food industry are required to register their employees for the Mandatory Provident Fund within the first 10 days of employment. Given the high mobility of employees and the frequent short-term nature of employment in these industries, the MPF system has introduced industry schemes, facilitating employers and employees in arranging MPF contributions with ease.
What Exactly Are Industry Schemes?
Industry schemes are established as Mandatory Provident Fund plans for temporary employees in both the construction and food industries. Their primary aim is to ensure that even these short-term workers, if employed for just one day, are enrolled in the Mandatory Provident Fund by their employers, with contributions made.
Employers in the food and construction sectors are required to enroll both "temporary employees" and "regular employees" in the Mandatory Provident Fund, making contributions for them. Temporary employees refer to those engaged in the food or construction industry, employed on a daily basis or for a period of fewer than 60 days.
How to Join the Industry Scheme?
Currently, in Hong Kong, there are two appointed trustee companies operating the "Industry Scheme": Union Trust International Company Limited and East Asia Bank (Trust) Limited.
Temporary employees can open a temporary employee account in advance at these two trustee companies. Both trustee companies for the industry scheme will issue them a "casual worker card." If you are already enrolled in a specific industry scheme and your newly recruited temporary employee holds the same scheme's "casual worker card," you don't need to arrange their participation in the scheme. Just have the temporary employee present the "casual worker card," and contributions can be made.
However, if a temporary employee hasn’t opened an account in the industry scheme you are enrolled in, you must ensure to arrange their participation within the first 10 days of their employment, as previously mentioned.
What Are the Advantages of the Industry Scheme for Restaurant Owners?
Firstly, by participating in the industry scheme, employers who choose to contribute to their temporary employees on the next working day after payday don't need to provide contribution records to the employees. They are also exempted from the obligation to retain contribution records, significantly reducing administrative burdens.
Secondly, the industry scheme offers restaurant owners a more straightforward arrangement for mandatory provident fund contributions, minimizing complex management procedures. Owners simply need to ensure participation in the industry scheme and provide accurate data.
Lastly, providing the industry scheme to employees might enhance their satisfaction with the company. These schemes contribute to employee welfare, potentially increasing employee loyalty and improving the overall work environment.
We hope this information proves beneficial. Restaurant owners, if needed, remember to apply for the industry scheme!
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