The Motor Industry Bargaining Council has warned that employers who fall into arrears with contributions to the Motor Industry Retirement Funds (MIRF) could face significant legal and financial liability, particularly where employees die or become disabled while contributions remain unpaid.
The Motor Industry Bargaining Council (MIBCO) has placed motor industry employers on formal notice following a landmark ruling by the Financial Services Tribunal (FST) that reinforces strict penalties for failing to pay retirement fund contributions on time.
In a notice, MIBCO on Wednesday warned that employers who fall into arrears with contributions to the Motor Industry Retirement Funds (MIRF) could face significant legal and financial liability, particularly where employees die or become disabled while contributions remain unpaid.
The ruling arose from a case involving a participating employer in the MIRF system that failed to remit contributions timeously.
The Tribunal found that when employers do not pay retirement fund contributions, the employer — and not the retirement fund — becomes liable for risk benefits such as death and ill-health disability cover.
