A Chinese restaurant which was fined £135,000 last year for employing three illegal workers has now been banned from selling alcohol.

The White Horse in Sandhurst, near Gloucester, was visited by Home Office inspectors in August last year. They found three workers from Indonesia who had no right to work in the UK.

The Home Office handed the £135,000 civil penalty to the owner's company R&R (Gloucester) and called for the restaurant's council-issued licence to be revoked.

The Home Office visit followed intelligence that owner Lee Yap Kheang was employing illegal workers for no pay, in return for food and accommodation at the premises.

Officers encountered a total of seven workers, three of whom were identified as having no right to work in the United Kingdom. An objection was lodged but after consideration the original decision was maintained.

During the questioning, Mr Kheang identified himself as the director of the premises and had held this position for five years. Officers questioned him about each illegal worker and Mr Kheang stated that three individuals did not work at the premises, but they all helped occasionally by washing dishes and tidying the garden.

Mr Kheang further stated that he also helped the three individuals with food and accommodation instead of paying them with money. When questioned about right to work checks, Mr Kheang admitted to seeing the letters about claiming asylum but did not conduct any checks. He further admitted: "I know they are not allowed to work."

At a meeting of Tewkesbury Borough Council's licensing sub-committee on Thursday, councillors decided to revoke the premises licence.

The licence holder has the right to appeal to the Magistrates Court against this decision within 21 days of being notified of the decision in writing.

A spokesperson for Tewkesbury Borough Council said: "We hope this decision makes it clear that serious breaches won't be ignored. It should be a warning to others and a reminder of how important it is to follow licensing rules to keep people safe and protect our communities."

Illegal workers found at Chinese restaurant