The job centre in Blyth, Northumberland, has been closed and a Bailiff Possession Notice has been posted on the building's front door.
The Department for Work and Pensions has confirmed that twenty staff-members who work there have been turned away, and have been relocated to offices elsewhere.
A government spokeswoman has told ITV News Tyne Tees that 'contingency plans' are in place, and claimants will be paid as usual.
Other people who use the job centre are being contacted with regards to appointments.
The closure comes as a result of a legal issue involving a company called Telereal Trillium - which provides buildings for the DWP - and a 'third party landlord'.
A spokesman for Telereal Trillium said: "We are unable to comment further due to ongoing legal proceedings.”
7.3% of people in the North East over the age of 16 are currently out of work.
The figures for the last quarter (Feb to Apr 2016) have been released showing the region still has the highest numbers of unemployed people in the country.
Nationally the average level of unemployment is 5%
The parents of a disabled 18 year old say they're disgusted after being sent a letter by the Job Centre saying their son may have to prove he's unable to work in order to receive benefits.
Despite only being able to communicate through blinking, Liam Barker, from Middlesbrough, was told he may have to attend a work capability assessment.