A restaurant could face £40,000 in fines after employing two people who did not have permission to work in England.
Immigration officers raided Spice Garden, in Shenley Road, Borehamwood, and arrested two men from Bangladesh.
The first, a 25-year-old, was working in breach of his visa conditions and the second was a 60-year-old who had entered the UK illegally.
The Spice Garden could be fined up to £20,000 per worker unless they can prove employment checks, such as seeing a passport or a Home Office document, were carried out.
Officers also visited a residential address in Shenley Road where they arrested a 43-year-old woman from the Philippines, who had overstayed her visa.
The woman and the 25-year-old man have been detained and the 60-year-old has been released on immigration bail while their cases are worked on.
All three could now face being deported back to their respective countries.
Councillor Jean Heywood, who is responsible for environment policy, said: "Here in Hertsmere, we are committed to ensuring that businesses in the borough are well regulated and that staff and customers are protected.
"This operation formed part of the Better Business Compliance Partnership project being led by Hertfordshire County Council. This involves local and national regulators piloting new ways of working together to target our enforcement and investigative activities even more effectively."
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