The hearing at Norwich Employment Tribunal followed an investigation by the Employment Agency Standards inspectorate.
The Tribunal heard how Christine Lewiss, from Trimmingham near Norwich, withheld wages from workers totalling over £11,000. The offences were committed by two companies she operated, Rail Recruit UK Ltd and Rail Recruit UK Projects Ltd.
The Tribunal banned Lewiss from running or being concerned with the running of an employment agency or employment business for seven years.
EAS brought the case having successfully prosecuted Lewiss in June 2009 at Great Yarmouth Magistrates Court. This resulted in her being ordered to pay back withheld wages as well as £1,000 costs.
Edward Davey, the Minister responsible for employment relations, said: “This verdict should act as a warning signal to agencies who exploit their workers.
“We will take action against rogue recruiters across the country, who flout the law and undermine the vast majority of agencies who play fairly”.