Teacher applying for ILR - Problem

Hi Guys,

I have a friend who is a teacher who recently applied for ILR at Croydon.
He has been in the country for the past 5.5 years and been on several workpermits teaching (Supply work through agencies and permanent positions). Throughout, workpermits were obtained by the agencies and schools.
In 2005 , he had left one school(Permanent role- got a workpermit valid till 2008) to join another school(permanent role), The school recieved a letter from Home office stating that he can start working at the new school for 60months on condition he obtained QTS within the period required).He obtained QTS within 6months which was within the period.

When he went to Croydon to apply for ILR , the caseworker stated that he or his employer had not made an application for FLR in the required time,and that the letter that homeoffice had sent merley approved the school's application against the workpermit criteria for 60motnths and was not a workpermit itself, hence, he has no workpermit and has to restart the process of 5 years. Furthermore , he was advised by the caseworker that he could also query this with the school and solicitors and make a postal application where the decision making team will make a decision.

What is the best solution going forward?
Can the school sort this out with Homeoffice as they didnot apply for the FLR?
Who's fault is this? The school or employee?
Is this a common case between teachers working at various schools obtaining multiple workpermits over a 5 year period?
What can be done so that he doesn't have to do the 5years again?

many thanks for this...