A gay man insulted by his boss has won almost £10,000 in compensation.

An employment tribunal has ordered the Palace Pier in Brighton to make the payment to former employee Alan Whitehead.

Mr Whitehead worked as the senior arcade and sideshow manager at the pier from May 2001 until April 2004.

He said he felt forced to leave after learning he had been called a "chutney ferret" behind his back by manager Charles Quelch.

Mr Whitehead, who lived in Marine Parade, Brighton, but has since moved to Chipping Norton, Oxfordshire, said: "This wasn't about the money but about showing employers that they can't get away with this type of thing.

"I was devastated when I heard what Mr Quelch had called me. It was a disgusting and despicable way to treat anyone and this kind of behaviour has to be stopped.

"It's been a long, hard battle but the outcome makes all the stress my partner and I have endured worthwhile."

Another former employee, Ian Baldry, testified that managers often used the term "chutney ferret" and also referred to Kemp Town, where a lot of gay men live, as "chutney towers."

Mr Whitehead, 53, claimed he was deliberately avoided by Mr Quelch and treated callously when his father died.

Mr Quelch denied all the charges and said he had never heard the term "chutney ferret" until he told friends in a football team he was moving to Brighton and was teased because of the town's gayfriendly reputation.

He was backed by colleagues at the pier, including another gay employee, who said the manager was not homophobic and Mr Whitehead had disliked Mr Quelch because he had been given an easy ride under a previous manager.

In its judgment, the tribunal said there was no evidence that Mr Quelch was homophobic and that both he and Mr Whitehead were to blame for their difficult relationship.

But it did accept that the term "chutney ferret" had been used by Mr Quelch and that this in itself was sufficient to justify Mr Whitehead resigning.

The tribunal ruled that the use of the term was a degrading and humiliating violation of his dignity.

Mr Whitehead is one of the first people in the country to win a case under laws that came into force in 2003 prohibiting workplace harassment because of sexual orientation.

The tribunal also found that Mr Quelch's letters to Mr Whitehead telling him he would not receive full sick pay for time off following the death of his father were written in "a surprisingly harsh tone."

Solicitor Mark James, for Mr Whitehead, said: "This decision emphasises the obligations on employers to ensure they do not discriminate against and harass homosexual employees.

"It is simply unacceptable to allow this sort of treatment to take place and employers need to take adequate measures to prevent it".

A spokeswoman for the pier said: "The pier supported Charles Quelch against Mr Whitehead's allegations.

"Out of 20 allegations against Mr Quelch, 18 were rejected by the tribunal and we are awaiting a call from our solicitors, after which we expect to be able to appeal against the other two."