Scholars have found that many migrants are vulnerable to exploitation and that there are many immigrants among victims of extreme forms of labour exploitation. In the Global North, empirical studies have scrutinized the link between irregular migration and labour trafficking, yet empirical studies that focus on labour schemes involving regular migrants remain scarce. Drawing on a qualitative analysis of 8 investigative police files of labour trafficking involving regular migrants in the Chinese catering industry in the Netherlands, this study investigates the mechanisms through which exploitation comes about and is sustained. It is concluded that exploitation is the result of the ways in which both the employers and the victims manoeuvre the space provided by immigration policies. Employer-bounded residence and work permits emerged as an especially important contributor to the initiation and continuation of exploitative situations. Policymakers should be highly aware of the vulnerabilities of temporary labour migrants’ positions created by such policy arrangements. Future research is needed in order to create a better understanding of how exploitative work situations develop and are sustained, and the role different factors such as immigration policies play in such processes.