An accountant has told an employment tribunal she lost her job because she changed her gender.

Hannah Benson said she was unfairly made redundant by a Sussex rope company because she was a transsexual.

Ms Benson, formerly known as William, claimed she was taunted by colleagues at Marlow Ropes in Hailsham.

She showed the hearing how colleagues would walk past wiggling their hips while she was at her desk.

Ms Benson is making a claim for unfair dismissal and sexual discrimination. The company denies the allegations.

It claimed it was unaware she was undergoing gender reassignment when the decision was made to make her redundant following a major staff review.

The Brighton tribunal heard how Ms Benson was working for a rope company in Lancashire that was taken over by Marlow in March 2000.

She moved to Hailsham and in November that year was signed off work by her doctor suffering from stress and depression because of the teasing and pressure.

She wanted to return to work in March last year as a female but the company made her redundant.

Ms Benson, who lives in Daventry, Northants, said she had discussed her change of gender with her boss, Ronnie Smith, the company's finance director.

She said when she told him about wanting to work as a female he replied: "No way. We'll see about that."

He denied they had ever discussed the subject.

She said she started to dress in a feminine way at work, wearing women's trousers with no zip, women's blouses, clear nail varnish and high-heel shoes before she went off sick.

Ms Benson said: "I was absolutely shocked to be made redundant. My stress levels just went up. He really could not accept my transsexuality."

Ms Benson, who no longer lives with her wife, told the hearing she had made the decision to change her gender while working for the firm.

She said: "I knew at 14 that I was a female trapped in a male body. I have had to hide it for various reasons. The treatment I received from Marlow Ropes has hurt me."

Ms Benson, who has been referred to a London hospital for gender reassignment therapy, disputed her job was redundant. She said while she was off sick, the company had employed someone else to do her work.

Mr Smith said it was outrageous to claim Ms Benson's gender influenced the decision to make her redundant.

He denied ever knowing she had decided to change sex and live as a female.

She had never informed the company she wished to return to work from sick leave as a female and he had been surprised when he found out about the sex change three months after she was made redundant.

He said: "At the time of the termination of employment Ms Benson's gender was simply not an issue."

The tribunal reserved its decision, which will be announced at a later date.