A transsexual supply teacher has won a pay-out after a school asked her to leave because of her gender change.

Natasha Thoday, 35, had completed only one day at Telscombe Cliffs Community Primary School when she was told her services were no longer required.

She began employment tribunal proceedings under the 1999 amendments to the Sex Discrimination Act 1975 but East Sussex County Council offered her an out of court settlement of £3,780.

Ms Thoday, of Hanover, Brighton, used the cash to become the proud owner of a Mercedes Benz car.

She said: "I feel fantastic. I went straight out and bought a new car but it was always about justice not the money.

"I put my life and soul into teaching and deserved better than this.

"It's illegal to discriminate against transsexual people and the county council should have known this."

Ms Thoday described how, on March 5 this year, she received a call from agency Teaching Personnel telling her headmaster Andrew Kearsey no longer required her services at the school.

She said: "I cried. Mr Kearsey had told them he was worried about me disrupting the ability of the children to concentrate on their learning.

"I was upset and received a call from agency Teaching Personnel telling her headmaster Andrew Kearsey no longer required her services at Telscombe Cliffs Community Primary School.

She said: "I cried. Mr Kearsey had told them he was worried about me disrupting the ability of the children to concentrate on their learning.

"I was upset and outraged. If I do a bad job I want to be criticised for that, not because of my gender transition.

"The agency offered me another teaching job the next day and I knew I had to continue or my confidence would be knocked."

Recent changes to the Sex Discrimination Act 1975 specify the employment rights of transsexuals.

Ms Thoday, who has lived as a woman for two years, said: "I phoned Mr Kearsey and recorded the conversation. I explained that he was breaking the law.

"I asked him nicely why he didn't want me in his school. He said he was worried about Section 28, which bans the promotion of homosexuality in schools.

"He said he was concerned the kids would not be able to concentrate on their exams.

"One of the pupils had asked him if I was a transsexual like Hayley on Coronation Street."

Ms Thoday said when she first walked into a classroom she often had to put up with rude remarks about her gender transition from pupils.

She said: "They are just curious but I tell them they should have the courage to say things to my face if I have the courage to stand up and answer their questions. Afterwards they often say 'We think you're cool, miss'."

Ms Thoday said since she had become a woman she had felt genuine happiness and contentment for the first time in her life.

She said: "It has been hard work but I feel wonderful. Before I felt like a puppeteer but now I am me. I no longer have to apologise for who I am.

"Transsexuals are not second-class citizens. All we want is to be treated like any other women."

Ms Thoday took the dispute to the first stage of an employment tribunal but it was resolved via the conciliatory service Acas.

The compensation money was paid jointly by Telscombe Cliffs Primary Primary School and East Sussex County Council.

A spokesman for East Sussex County Council said: "The headteacher of the school recognises there was a breach of the law.

"The school is pleased an agreement has been reached and compensation awarded to the teacher concerned. The school believes the matter is now closed."