A high-flying solicitor who was allegedly sacked hours after revealing she was pregnant reached a settlement with her former employers today.

Yesterday her colleague Katherine Wallace, from Lewes, told an employment tribunal in central London she was branded a "whingeing, whining Communist" by another boss at law firm Tarlo Lyons.

Sarah Collins, 38, from Clapham, south London, had previously alleged she was sacked from her £105,000-a-year job two-and-a-half hours after announcing she was expecting a baby.

She had been claiming a significant sum from her former employer in compensation for sex discrimination and unfair dismissal. The law firm, based in the City, denied any wrongdoing.

In a joint statement issued today, it was revealed the proceedings had been settled.

The statement said: "The full terms of settlement will remain confidential but both parties confirmed that, as part of this settlement, Miss Collins unreservedly withdraws all her claims before the tribunal, including her claims of sex discrimination against Tarlo Lyons.

"For the avoidance of doubt, Miss Collins confirms her complaint to the tribunal was never a complaint of sexual harassment."

Miss Collins, who has since had a daughter, had previously claimed she endured sexist remarks at work.

Giving evidence yesterday, Ms Wallace told the tribunal that during a City lunch one of her bosses, Philip Diamond, told her she had to be more aggressive.

"It's a man's world," he told her, adding: "Women need to get out there and show their balls."

He said it was "typically a female way of thinking" there could be a meritocracy at the firm.

Ms Wallace said there were lots of "locker room" jokes and the firm had a culture that was "very pally, in a little boys' way".

Ms Wallace, who worked at the firm from September 1996 to June last year and was promoted to an associate, said the head of the corporate department, Lawrence Phillips, called her a "whingeing, whining Communist" and accused her of "backing the wrong horse by siding with the underdog".

Miss Wallace told the tribunal that senior male staff were part of a "boys' club" which thrived on "laddish culture."

She said Mr Phillips had a reputation for making "inappropriate and abusive" comments about women in the workplace.

She added: "He commented in my presence that women expected to have everything their own way and wanted people to say 'Oh fluffy bunnies' if anything went wrong."

Miss Wallace told how Mr Phillips also asked intimate and intrusive questions.

She said other female members of staff would come to her in tears to complain about sexist behaviour.