Hong Kong Renovation Risks: Avoid Illegal Workers
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Earlier, the TV program "The Frontline Investigation" conducted a series of follow-up reports, bringing to the public's attention a deep-seated issue in Hong Kong's renovation industry that has long existed and is becoming increasingly serious—the "black worker wave" is no longer isolated cases but has spread from public housing to heavily guarded luxury homes. Black workers can easily enter under the guise of "visiting" and freely carry out work in the units. While many homeowners are attracted by low quotes, they often overlook the potential risks hidden behind. Let Renovation Man explain the situation and provide practical risk-avoidance solutions for the vast number of homeowners.
Black Market Labor Wave Spreads to West Kowloon Luxury Residences, Bypassing Security Under the Guise of "Visiting"
A TV station's undercover report has revealed the prevalence of black market labor issues and their flexible operational models. The program's footage captured scenes in West Kowloon luxury residential complexes, where so-called "mainland workers" could easily bypass security inquiries and freely enter units for construction work by simply claiming to be "visiting friends." Industry insiders disclosed that some security personnel often fail to strictly require workers to present valid "Green Cards" (Construction Industry Safety Training Certificates), rendering security defenses virtually useless.
These black market workers primarily employ two strategies to increase enforcement difficulties: one is the "same-day" approach, where they enter Hong Kong in the morning and leave by evening, operating undetected; the other is more covert, involving directly staying in the construction unit, with meals provided by others, and leaving only after completing the work in a few days. This operation completely evades the normal regulatory network. Unless serious incidents such as workplace injuries or fires occur within the unit, enforcement authorities find it difficult to intervene in private residences for evidence collection, allowing them to thrive in legal gray areas.
HOY Info Channel × Cable News i-Cable News YouTube Screenshot
Attracting Customers at a Fraction of the Price, Impacting the Local Renovation Market
The influx of illegal workers has had a devastating impact on Hong Kong's renovation industry, with its core weapon being "low prices." The daily wage for a local worker can reach HKD $1,800 to $2,000, while a mainland worker's daily wage is only about CNY $500 to $600. The huge cost disparity makes it impossible for local companies to compete in pricing. Shocking examples abound in reports: a cabinet quoted at HKD $10,000 in Hong Kong can be claimed to be completed for as low as HKD $3,000 by illegal workers; a standard kitchen renovation project, priced at around HKD $120,000 to $150,000 by local companies, can be taken on by illegal workers for as low as HKD $30,000.
This kind of cutthroat competition, where prices are slashed to harm others, is leading to a complete market collapse. A design company manager revealed that a luxury home project originally quoted at HKD $2 million was negotiated down to HKD $800,000, because the homeowner only left a small portion of the work to local companies and assigned the rest to illegal workers. More distressingly, some local companies, in order to survive, have actively hired illegal workers to reduce costs and win bids, creating a situation where "one's own people harm each other." In the long run, law-abiding companies are being driven out by bad actors, and business closures are emerging in areas like Mong Kok and Wan Chai, known for their building material streets.
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Why Do Illegal Workers Persist?
The root cause of the illegal worker problem points directly to systemic loopholes in the current immigration management system. Many of them hold tourist documents and enter the country as tourists under the convenience of the "multiple-entry" visa. As industry insiders have stated: "When you allow a large number of people to come and go freely, that becomes a problem." Once they successfully enter and take refuge in private units as a "safe haven," subsequent enforcement actions become extremely difficult. Although the Immigration Department has taken action, compared to the vast number of illegal workers, it is clearly a drop in the bucket.
Image source: HK01
The Hidden Risks for Property Owners
Property owners who choose to hire illegal workers are placing themselves at significant legal and financial risks. According to Hong Kong's Immigration Ordinance, employing illegal laborers can result in a maximum fine of HK$500,000 and up to 10 years of imprisonment. The most critical aspect is the liability for industrial accidents. Illegal workers do not have local labor insurance; if an accident occurs on the premises, the owner may be held responsible for medical expenses and compensation, with amounts potentially reaching millions of Hong Kong dollars. Additionally, there are differences in construction standards and material requirements between Mainland China and Hong Kong. Construction carried out by workers lacking local licenses and training can create long-term safety hazards for the property.
Four Major Chambers of Commerce: Illegal Workers Sign Short-Term Leases to Pose as Tenants, Propose Real-Name Worker Platform
Regarding the issue of illegal workers in the decoration industry, Hong Kong's four major decoration industry chambers of commerce recently released the "Hong Kong Decoration Industry Illegal Labor Problem Survey Report," using industry data to reveal the severity of the problem, describing its impact on the industry as comparable to the "etomidate" (space oil) disaster. More concerning is the attitude of property owners; the survey found that 20% of owners admit that even if they discover illegal workers, they would "turn a blind eye" to ensure the project proceeds smoothly. The report further exposes that illegal workers, to evade investigation, sign "short-term leases" with owners to pose as tenants, making enforcement even more difficult.
Image source: President of the Hong Kong Engineering Decoration Chamber of Commerce, Lui Tik Ki's Facebook
How to Find a Reliable Renovation Partner?
In a market environment full of risks, how can consumers protect themselves? The answer is to return to professional, transparent, and institutionally guaranteed channels. The "Renovation Man" platform has a comprehensive database of renovation companies, all of which have undergone strict vetting to ensure they are legally registered in Hong Kong and have a good track record as formal companies. Compared to searching through social media platforms or risking trust in unknown low-priced offers, it's easier to find reliable teams on a reputable platform.
Additionally, renovation consultants will screen and match the most suitable renovation companies for homeowners based on their budget, style requirements, and unit conditions from the database. The consultants will also assist and answer questions, ensuring homeowners make informed decisions with full understanding.
Moreover, the Renovation Academy's "Renovation Pitfall Prevention Class" covers topics such as how to identify renovation traps and interpret quotation sheets. From selecting a company to inspecting the unit, it empowers homeowners to navigate the entire renovation process with enhanced judgment, minimizing the chances of falling into pitfalls.
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Tenement Buildings｜https://decoman-tenement.com/
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This article's content and images are provided by columnist Decor Man.
