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The Thai Flag restaurant in Flag Hill was visited by officers on Friday 18th September. The intelligence led operation resulted in the arrests of five people with no permission to work in the UK.
The eatery now faces a fine of up to £50,000 - £10,000 per employee - unless it can prove that the correct pre-employment checks were carried out.
Chief Immigration Officer Jack Davis said: "Those who use and exploit illegal workers face severe financial penalties. We are happy to work with businesses to ensure the right pre-employment checks are carried out, but those intent on operating outside the law should be warned that they will be found and they will be punished.
"Employers who don't play by the rules will get struck off our register, lose the right to recruit staff from outside Europe, face on the spot fines and could potentially end up in jail."
Guidance for employers on preventing illegal working can be found on the UK Border Agency website, www.ukba.homeoffice.gov.uk/employingmigrants or by calling the UK Border Agency Employers Helpline on 0300 123 4699.
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