Two kosher food firms could be fined up to £70,000 after the UK Border Agency raided their factory.
Officers arrived at the premises of The Great Food Company and Gilbert Kosher Foods - in Bletchley.
Inside, Agency staff interrogated a total of 56 employees and spent two hours separating those who were legally entitled to work in the UK from those without correct permits.
Seven men were suspected of working illegally, five from The Great Food Company - three of whom were arrested at the scene, and two from Gilbert Kosher Foods.
All those arrested from The Great Food Company were Sri Lankan men who may also face charges for counterfeiting documents.
From the same firm two other men were found to have multiple identities meaning they would be taken to their homes for more questioning.
From Gilbert Kosher Foods, a further two men were discovered to be working unlawfully while their asylum application was being processed.
Both firms share the same managing director who was served with two 'notices of potential liability,' meaning he could be fined up to £10,000 per person knowingly employed illegally.
The Milton Keynes Citizen reported that UK Border Agency area director Gareth Redmond said: "This has been a good result, following our intelligence to lead to these arrests.
"We take illegal working incredibly seriously, from the individuals themselves to the employers - the UK Border Agency deports one person every eight minutes."