A review has been ordered of Cheshire West and Chester Council's hiring processes after it was hit with a £40,000 Government fine for employing an illegal worker.

The LDRS reported in June how the council said it was baffled after the Home Office issued it with an initial civil penalty of £45,000 for the breach.

It said at the time it had "no record or knowledge" of the matter and was contacting the Home Office for clarification.

A probe revealed the fine related to an employee with a temporary right to work in the UK, who had not succeeded in their application to have it extended and had not told the council.

Now the council said it has accepted the judgement but was granted a reduced penalty of £40,000 in recognition of the fact it was not initially notified about the breach by the Home Office, and that it had taken swift action to dismiss the employee in question.

But Cllr Adrian Waddelove (Farndon), leader of the Cheshire West and Chester Conservative Group, said he was "frankly astounded" by the news and said heads should roll.

He said: "I initially raised my concerns directly with the chief executive in June when it was first reported in the media, and I was led to believe that correct processes had been followed – but ultimately, this is clearly not the case."

"I am not blaming a junior ranking member of staff for this matter. Clearly there has been a complete failure of management oversight.

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"The Labour administration claims that, time after time, there is no money for schemes that would have a significant positive benefit for residents and businesses such as safe crossing routes, pothole repairs or community investment.

"Yet, £40,000 of taxpayers' money has been simply flitted away by council incompetence. This is simply unacceptable and there must be some accountability, and someone must take responsibility and resign."

Labour's Cllr Louise Gittins, leader of Cheshire West and Chester Council, said the council did "not knowingly employ" an illegal worker and that they had the right to work when they were hired.

She said: "The council acted decisively when it became aware of the change of immigration status. The council follows the statutory right to work processes set by the Government and applies these checks across its workforce.

"While robust processes are in place, human error can occur in any organisation. The critical point is that once the issue was identified, the council acted swiftly to rectify the situation."

Cllr Gittins said she had commissioned a "comprehensive review and audit" of the council's right to work processes to 'provide assurance' that controls are operating effectively and to identify any lessons that can be learned.