How to Manage Employee’s MPF After the Termination of Employment?

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Normally, if an employee terminates, he/she will give one month’s notice to the employer. When your employee ceases employment with your company, be sure to do two things:

  1. Arrange for the last payment of the departing employee’s mandatory contributions to be made together with those of other employees on or before the “contribution day” of the following month, that is, the 10th day of that month.
  2. Notify your trustee about the termination promptly.

How to notify the trustee?

There are two ways to notify your trustee of the departure date of your employees. You can notify your trustee in writing or by making use of the remittance statement.

In the remittance statement, there is usually a section designed for you to report termination of employment of your employees. Simply fill in the required information in that section, such as the name of the departing employee and his/her last day of employment, and send the remittance statement to your trustee along with the contributions.

If you notify your trustee about the employee’s termination of employment through a written notice, check with your trustee to find out about the proper procedures. Some trustees may have a Notice of Termination form for you to use. In any case, be sure to observe the deadline mentioned above if you send your notification separately in writing.

Remember to notify your trustee about the employee’s termination, otherwise, you might be mistakenly treated as a suspected defaulter, and report to the MPFA your failure to contribute for that employee as a default.

Workstem’s MPF function will help you manage all your employees’ P Files and calculate the amount of MPF contributions!

(The article on this website is intended to be for reference and general information purposes only. Workstem does not warrant or represent that such information is complete, accurate or up to date. It should not be treated as a complete and authoritative statement of law or court practice, or a substitute for professional legal advice.)

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