A council boss has accused a former leading councillor of being prejudiced against her because she is a woman.

Sheryl Grady, the chief executive of Worthing Borough Council, is claiming compensation at an employment tribunal for sex discrimination.

Miss Grady, 47, who lives in Hove, says she was made ill by sexist treatment she suffered from some colleagues and councillors.

She has alleged there was clear evidence of institutionalised sex discrimination within the council and claims she was repeatedly treated less favourably because she is a woman, in areas from pay to office furniture.

Miss Grady, who earns £80,000 a year, says she was undermined, her authority was questioned and she was made to feel humiliated and embarrassed.

She is taking legal action against the local authority and its former Liberal Democrat leader, Sheila Player, who lost her seat in May's local elections. The allegations are denied.

The tribunal has heard accusations of sexism and ill-feeling between senior officers running the town.

On the second day of the Brighton tribunal, Miss Grady complained Miss Player had shown prejudice against her because she is a woman.

Miss Grady, who has worked for the authority for 12 years, said: "In my years with Worthing Borough Council I have never heard Miss Player treat colleagues as she treats me. I believe she does not treat female senior officers in the same way as male officers or with the same respect. Nor does she acknowledge their authority or experience or qualifications as she does men."

She also complained that Miss Player, who had hoped to become the town's next mayor before her shock defeat in the polls, unfairly criticised her publicly.

On one occasion, she said, Miss Player was critical of her during an executive meeting of the council.

Miss Grady said: "She became extremely confrontational and started to criticise me heavily in front of the meeting. I was completely dumbfounded by her rudeness and inappropriate behaviour."

She was warned Miss Player disliked her and heard from staff she was threatening to get her sacked if the Lib Dem group won control of the council at the next election.

She said: "Miss Player told them that if her group obtained control at the elections then they could watch her frogmarch me out of the office and into the street."

She said Miss Player complained behind her back about her appearance. She said she did not understand why her appearance was picked on because she almost always wore trouser suits and never anything inappropriate.

The tribunal heard that Miss Player had admitted referring to Miss Grady as "Goldilocks" but insisted it was a nickname and not meant to be offensive.

Miss Grady said: "I have been contacted by a number of members who have told me Miss Player repeatedly used this nickname for me and that it was certainly not used in a manner that could be said to be a term of endearment."

Miss Grady referred to a news sheet circulated in Worthing which was critical of her appearance, which the council has included in its defence against her allegations. She said: "To use this as an example is unfair and misleading. I am not aware my physical dress or hair has made 'Worthing Borough Council a laughing stock'."

The tribunal has heard how Miss Grady went on sick leave last December suffering from depression and stress after the council launched an investigation - which has so far cost taxpayers more than £30,000 - into her management style.

She was accused of bullying, inducing stress and creating an atmosphere of blame.

It followed a complaint from a member of staff through his union, the GMB.

Miss Grady has described the council's investigation as "draconian".

The tribunal is due to last another six days.