Inspectors from the Department for Business, Innovation and Skills’ Employment Agency Standards inspectorate swooped on the industry in October visiting 58 agencies.
Inspectors identified two construction agencies that had failed to pay nearly £30,000 to a total of 39 workers for the hours that they had worked.
EAS successfully secured payment for the workers in full and are currently considering whether legal action should be taken against the agencies involved.
On average, EAS found six infringements of the Employment Agencies and Employment Businesses Regulations 2003 at each agency, although the majority of these were low risk paper infringements.
Inspectors offered advice and guidance where non-compliance was found and agencies were given warning letters and three weeks to amend their business practices.
Edward Davey, the Minister responsible for employment relations, said: “I am delighted to see the successful results of the EAS’ recent operation.
“A vibrant and well-run private recruitment sector is a vital part of this country’s economy. I am determined to see employment businesses complying with the law in the construction sector and elsewhere.”
EAS is now drawing-up further guidance for the construction sector to support business and raise levels of compliance.