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Peabody has offered to re-employ a caretaker who worked at the housing association for more than a decade before being dismissed under Home Office advice in 2012.
Hubert Howard, who has lived in the UK since the age of three, was wrongly told he could not stay in the country in 2011 amid a crackdown on illegal immigration.
His case is one of many to have been raised as revelations continue to emerge about Caribbean migrants, most of whom came to the UK in the 1950s and 1960s and are facing problems with their immigration status.
Peabody was advised that Mr Howard was in the country illegally in 2011 and that he should not be employed, after government officials said they could not find paperwork showing he had the right to remain. He left the association the following year.
A spokesperson for Peabody said: “Hubert was a very highly regarded employee who we did not want to lose in 2012. Nevertheless we have to work within the law. We would be pleased to re-employ him once we can confirm that it is legal to do so.”
The government has faced a growing backlash for its treatment of the so-called ‘Windrush generation’, with many blaming Theresa May for her declaration that she wanted to create a “hostile environment” for illegal immigrants when she was home secretary.