It is illegal but most large companies encourage these small illegal companies that take the legal liability while providing cheap labor. If the small company s

It is illegal but most large companies encourage these small illegal companies that take the legal liability while providing cheap labor. If the small company shuts down does not matter it will come up again with a different name. It does not matter how hard government hits them, there is a legit need they are serving and hence will continue to exist irrespective of law.