2025-05-28 28Hse Editor
Many homeowners choose to renovate their units after purchasing or taking possession of a property. While selecting a renovation company, it’s essential to compare options and avoid being lured by excessively low prices. Engaging a company that employs illegal workers could leave homeowners legally liable.
Recently, the Immigration Department discovered a mainland-based renovation company promoting its services on social media. The company attracted customers in new housing estates with a one-stop service package, from design to furniture installation, for just HK$120,000.
Over the course of a four-day operation, the Immigration Department arrested 13 illegal mainland Chinese workers and 8 employers. The workers were caught performing various renovation tasks, such as taking measurements, painting, electrical work, furniture installation, and cleaning. Investigations revealed that these illegal workers earned a daily wage of HK$100 to HK$500. Six of them pleaded guilty and were sentenced to two months in prison.
Although no homeowners were arrested in this operation, it’s important to note that if a homeowner is proven to have knowingly hired a renovation company employing illegal workers, they could face charges for aiding and abetting a violation of stay conditions under Section 38AA of the Immigration Ordinance. The maximum penalty includes a fine of HK$500,000 and up to 10 years in prison.
For public housing units, the consequences are even more severe. If a tenant is convicted of hiring illegal workers for renovations, they may lose their unit. According to tenancy agreements, tenants are prohibited from using their units for any unlawful activities or allowing others to do so. Violating this clause could result in the termination of the lease and repossession of the unit by the Housing Authority.
If homeowners can prove they were unaware of illegal activity, they are not considered at fault. However, to minimise risk, homeowners should avoid overly cheap renovation packages.
Renovation costs vary depending on design and materials, but in Hong Kong, the average cost for renovation (including labor and materials) is around HK$1,000 per square foot. For a 400-square-foot unit, the basic renovation budget would be approximately HK$400,000. If the price seems too good to be true, it likely warrants further scrutiny.
Homeowners should also verify workers’ credentials by checking if they have valid Hong Kong identity cards or asking renovation companies to confirm they do not employ illegal workers. Additionally, homeowners must apply for a renovation permit through the building's management office, which requires Hong Kong identity cards as part of the process and acts as an added safeguard against illegal employment.
With the transparency of online information, homeowners can also research renovation companies on social media and forums to identify reputable options and avoid unreliable ones. By taking these precautions, homeowners can protect themselves from legal risks while ensuring a smooth and lawful renovation process.
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