With a history of more than 40 years and dozens of branches in Hong Kong, Kaishi Bakery has recently been involved in the turmoil of unpaid food and MPF contributions. The MPFA stated that Kaishi owed employees 760,000 yuan in MPF contributions in August. It also noted that under the epidemic, employers’ default in MPF payments has increased for three consecutive years. From April to August this year, an average of more than 29,000 notices were issued each month, an increase of nearly 35% compared with three years ago. The catering industry has been greatly affected, and the trend of default in payment is expected to continue. Kaishi Bakery issued a statement yesterday that it will pay all the salaries of the employees involved within this week, and will also strengthen communication with employees in the future.
Kaishi Bakery’s statement pointed out that since the epidemic, the operation has faced unprecedented severe tests, and there have been different plans to increase income and reduce expenditure. Due to financial arrangements, some employees have not been paid their salaries for August. The management is following up and will arrange for payment within this week. The MPFA stated that it learned that Kaishi Bakery did not make contributions to the MPF in August, involving regarding 580 employees and a total of regarding 760,000 yuan, and immediately requested the employer to make up the payment. As for the September contribution, it is due on or before the following Monday.
Crostini, a chain restaurant and bakery that closed suddenly last month, also defaulted on MPF contributions. MPFA Chairman Lau Mak Ka-xuan pointed out that under the epidemic, employers’ default in MPF payments has increased for three consecutive years. From April to August this year, an average of more than 29,000 notices were issued each month, an increase of 15% compared with the same period last year, and a 34% increase compared to the same period in 2019-20 before the epidemic. The catering industry will be greatly affected, and it is expected that the payment will default. trend will continue.
She also pointed out that from April to August this year, the bureau has successfully recovered 69 million MPF contributions for 42,000 employees through direct intervention, which is $1 million more than the same period last year. She estimated that it was because the government launched the Employment Protection Scheme earlier, one of the application conditions was to provide the employee’s MPF contribution record, so the MPFA successfully recovered a lot of money. She said that in case of large-scale cases, the bureau will take the initiative to contact labor unions or relevant employee organizations to assist them in recovering their arrears of MPF contributions.
Sun Yuhan: The arrears will be recovered according to the law
Minister of Labour and Welfare Sun Yuk-han pointed out that he is very concerned regarding the food delay incident at the Kaishi Bakery. The Labour Department has contacted the employer to understand it, and called on the affected employees to take the initiative to contact prescription assistance. He also pointed out that in the event of a situation, the employees can receive their outstanding wages through the Bankruptcy Backed Wages Fund. Salary and severance pay. When asked whether the government would consider reintroducing the employment guarantee plan, Sun Yuhan responded that the plan is only a one-off measure under the special circumstances of the epidemic, emphasizing that the government will recover the arrears of MPF from employers in accordance with the law to ensure the rights and interests of employees Insured.
Originally published on AM730 https://www.am730.com.hk/local/Kaish Bakery owes $760,000 to MPF-MPFA-Employer’s delinquent contributions rise for 3 consecutive years/341859?utm_source=yahoorss&utm_medium=referral
