Gordon Brown today spared his Attorney-General the sack for employing an illegal immigrant as her housekeeper, but ordered her to apologise "profusely" over the affair.

Baroness Scotland of Asthal, the Government's top law officer, was fined £5,000 for breaching UK Border Agency rules on employing migrant workers after the agency found that she had employed a Tongan woman who did not have the right to work in the UK.

Although Lady Scotland carried out the immigration status checks required by the Act, which she helped to pilot through Parliament, she failed to keep photocopies as proof that the checks had been made.

Gordon Brown spoke to Lady Scotland this morning, shortly before he was due to fly to New York, and told her that he was not taking the matter lightly, and neither should she. Downing Street sources said that he told her to "apologise profusely", but did not insist that she should resign from the Cabinet.

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Lady Scotland issued a statement an hour later, saying: "I fully accept the findings of the UK Border Agency, that I made a technical breach of the rules and I apologise for having made this inadvertent error.

"Having examined the documents which I was shown, I accept entirely that I should have taken copies of them and retained those copies and I accept it is my duty to pay the fine and I have done so... Once again, I sincerely apologise for my error."

Mr Brown said: "The Government takes seriously breaches of this important protection against illegal immigration and as a result Baroness Scotland has made the fullest of apologies and paid the fine.

"In line with the ministerial code I have consulted the Cabinet Secretary and, given the UK Border Agency is satisfied she did not knowingly employ an illegal worker and took steps to check the documents, I have concluded that no further action is necessary given the investigation and action that has already been taken by the appropriate authorities and her unreserved apology."

Downing Street then released details of a mini reshuffle that had been on hold until the outcome of Lady Scotland's case. Margaret Hodge has returned to the Government, going back to her job as tourism minister in the Culture, Media and Sports Department after taking a year's compassionate leave to care for her dying husband.

To make way for her, Barbara Follett becomes junior minister in the Communities and Local Government Department.

Opposition spokesmen condemned Mr Brown for failing to axe his Attorney General.

Chris Grayling, the Shadow Home Secretary, said: "After this, we can’t see how Baroness Scotland can credibly stay in her job. She was the minister who steered this law through the House of Lords and who insisted upon its stringent application. She has no excuse for breaking it.

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