Officials have discovered five employees in Leicester who have undertaken employment without UK work permits.
The Indian men, all aged between 30 and 40, were arrested at Lily Ltd on Junction Road last week (January 11th) by UK Border Agency (UKBA) immigration officers.
After questioning and a check of their immigration status, it was confirmed that the men did not have the right to work in the UK.
While the UKBA is taking actions to remove the illegal workers from the country, the business is facing a fine of up to £50,000 if they are found not to have carried out the correct UK work permit and passport checks before hiring the men.
Phil Dyer, UKBA assistant director in the East Midlands, commented: "Illegal working is unfair on honest employers who recruit staff with the right to work in the UK and who pay them a proper salary."
He added that the agency is to continue to support companies that comply with UK immigration law. However, any firm that takes on a foreign national without permission to work "should be aware that it is breaking the law".
"Rogue employers should be warned that they face heavy fines and could end up in jail," Mr Dyer warned.
Meanwhile, immigration officer Damian Green noted that new technology is being used to enable officers to "focus of their efforts on people trying to cheat the system".