The raids happened on May 28 at two businesses just yards apart in Norwich Street.
Three Turkish nationals were arrested at Direct Pizza, which was also issued a Civil Penalty Referral Notice, while an additional two Albanian men were arrested at Barbers.
Direct Pizza in Norwich Street saw multiple people arrested (Image: Google)
Eyewitnesses in Fakenham said there was a tense atmosphere around the town as the raids took place.
One person said: “The atmosphere quickly turned tense, with people stopping in the street to see what was happening.
“For many, the scenes felt more like something associated with a major city than a quiet market town like Fakenham.
Barbers in Norwich Street was raided (Image: Google)
“Passers-by gathered outside the affected shops to watch events unfold.”
Government officials say an investigation into the businesses is under way.
The liable employer could face a substantial fine if it is found that it employed illegal workers and failed to conduct relevant pre-employment checks.
The penalties can typically include fines of up to £45,000 per illegal worker for an initial breach, rising to a maximum of £60,000 for repeat offences.