Physical Health Centre has become the latest gym chain to slip into trouble after rival Pure Fitness, with Hong Kong’s pension regulator demanding it settle about HK$3 million (US$384,615) in outstanding contributions for 740 employees.
A spokeswoman for the Mandatory Provident Fund (MPF) Schemes Authority on Sunday warned it would take legal action against Physical if it failed to settle the outstanding payments for June and July.
The authority also revealed that two employees had lodged complaints about unpaid contributions in July and August respectively.
“The MPF Authority is following up with Physical and has requested that the arrears be promptly settled, otherwise the authority will take legal action and file a civil claim against it in court to recover the outstanding contributions and surcharges for affected employees,” the spokeswoman said.
The Post has contacted the company for comment.
The authority said it took non-payment of MPF contributions by employers very seriously. Its Member Protection and Services Division was responsible for handling information and cases involving suspected breaches of the MPF Schemes Ordinance.
It had mechanisms in place to require trustees to report suspected cases of delayed contributions monthly so it could proactively follow up on non-compliant cases and help to recover arrears for affected scheme members.
The authority also urged any workers who suspected their employer had not arranged for them to join a scheme or there are delays in contributions to contact the MPF Authority hotline at 2918 0102 or email at [email protected] immediately for follow up action and help.
The Labour Department said it was concerned about the incident and that if employees if their wages or other employment rights were withheld, they should promptly provide information to the department.
According to Physical’s website, it was founded in 1986 as a yoga centre and operates 23 branches across the city, with 500,000 customers.
It said it was the largest and fastest-growing fitness centre chain in the city.
About 10 days ago, rival Pure Fitness was accused of failing to pay the rent and management fee of its branch in Central, involving a sum of about HK$13.59 million (US$1.74 million).
