Lanzarote Construction Company Fined More Than €108,000 Over Irregular Employment
A construction company based in Yaiza has been hit with a sanction of more than €108,000 following an investigation into the alleged illegal employment and exploitation of foreign workers on construction sites across Lanzarote.
The case stems from Operation Bordillo, a joint investigation involving Spain’s National Police and the Labour and Social Security Inspectorate. The operation uncovered what investigators described as an organised system involving workers who allegedly used the identities of other people who were legally registered for employment.
Investigation uncovered workers using other people’s identities
The investigation began in October 2025 after the Labour Inspectorate received information suggesting that foreign workers without the necessary residence or work authorisation were being employed by a construction company in Lanzarote.
Investigators discovered an unusual system allegedly being used to get around employment and Social Security requirements.
According to the investigation, details belonging to workers who were legally employed were supplied to subcontractors, while different workers were actually sent to construction sites. Those workers were allegedly instructed to memorise the personal information of the people whose identities they were supposed to use.
This meant that workers could appear on official records as somebody else, while the company avoided registering the additional workers and paying the corresponding Social Security contributions.
Five Lanzarote construction sites inspected
On 4 November 2025, police officers and Labour Inspectorate officials carried out simultaneous inspections at five construction sites.
The sites were spread across Arrecife, Yaiza, San Bartolomé and Teguise, demonstrating that the investigation was not confined to a single location.
The reported locations included work connected with social housing in Playa Blanca, work in Arrecife, paving works in San Bartolomé and a hotel construction project in Costa Teguise.
During the inspections, officers identified workers who allegedly provided the personal details of other people.
In some cases, those questioned reportedly struggled to provide basic information about the identities they were claiming to be, including surnames, NIE numbers and family details.
16 people were arrested during Operation Bordillo
The wider police operation resulted in 16 arrests.
They included two construction-sector businessmen and 14 foreign workers. According to the official Labour Inspectorate account, the 14 workers were allegedly involved in irregular employment and the use of other people’s identities.
Twelve of those workers reportedly did not have residence authorisation, while all 14 were said to be without authorisation to work in Spain.
The two businessmen were arrested in connection with alleged identity-related offences, document falsification and offences against workers’ rights.
The workers themselves were arrested in connection with the alleged usurpation of another person’s identity. The investigation and subsequent proceedings should, of course, be distinguished from a final criminal conviction.
More than €108,000 in sanctions and unpaid contributions
The subsequent Labour Inspectorate proceedings resulted in a total figure of more than €108,600 involving the company.
According to the resolution reported this week, around €72,000 relates to the labour sanction, while approximately €36,600 relates to outstanding Social Security contributions. The reported sanction was subject to a 40% reduction linked to recognition of responsibility and payment within the required period.
The inspection also identified other alleged employment irregularities, including workers who had not been registered correctly and two people who were reportedly receiving unemployment benefits while also working.
Inspectors also found alleged issues relating to working hours, payroll records and the recording of employees’ working times.
Why this matters in Lanzarote
Lanzarote continues to see construction activity linked to housing, hotels, tourism facilities and infrastructure. Behind every construction project are workers who are entitled to proper contracts, legal employment conditions and the protection provided by Spanish labour law.
Illegal employment can also create an unfair advantage for businesses that avoid costs such as Social Security contributions and proper wages, potentially putting legitimate Lanzarote businesses and employers at a disadvantage.
For residents, property owners and anyone commissioning building or renovation work in Lanzarote, the case is also a reminder of the importance of using properly established contractors and ensuring that workers are legally employed.
The investigation goes beyond one company
Operation Bordillo was not simply a routine workplace inspection. It involved cooperation between the National Police and Labour Inspectorate to investigate suspected exploitation of foreign workers and the alleged misuse of identities.
The original investigation resulted in 16 arrests, and the Labour Inspectorate subsequently pursued the employment and Social Security aspects of the case. The information gathered was also passed to the judicial authorities for consideration of potential criminal responsibilities.
For Lanzarote, the case serves as a reminder that labour inspections can involve much more than checking whether someone has a contract. Authorities can investigate whether the person actually working on a site is the person officially registered, whether Social Security contributions are being paid and whether workers are receiving the rights and protections to which they are entitled.
A significant case for Lanzarote
The €108,000-plus Lanzarote labour sanction is significant, but the wider story is the system uncovered during the investigation.
The case demonstrates how cooperation between the Labour Inspectorate, Social Security authorities and National Police can expose complex forms of illegal employment that might otherwise be difficult to detect.
