A woman has told an employment tribunal she was horrified and furious to be accused of being a racist bully.

Charlotte Orr, assistant manager at a petrol filling station at the Boship roundabout near Hailsham, denied the allegations and told the Brighton hearing they were lies.

Vasanthal Shanmugam, 51, who was born in India and has lived in England for 20 years, is claiming compensation from her former employers Total Convenience Stores for constructive dismissal and race discrimination.

The company denies the allegations.

Mrs Shanmugam, of Seven Sisters Road, Eastbourne, earlier told the tribunal she was forced to resign from her job as a cashier because she was reduced to tears by the unfair way she was treated by Miss Orr.

She claimed Miss Orr referred to her as a "Paki" and once when she was being complimented on her perfume she claimed Miss Orr muttered to herself: "Vas smells like s**t."

Miss Orr, who lives in Hailsham, denied the allegations on the second day of the hearing yesterday.

She said: "I have considered the allegations and I am absolutely horrified and furious. They are complete fabrications."

She denied making derogatory racist remarks or humiliating or ignoring Mrs Shanmugam. She said she had a communication problem with Mrs Shanmugam because she would not listen to her.

She claimed Mrs Shanmugam refused to carry out tasks, such as filling shelves and cleaning, which other staff did.

She said: "She said cleaning was not her job. But all the other staff did it. She has always been a very difficult person. She never accepted the fact she could not do as she wanted.

"I categorically deny her allegations. I never shouted at her for any reason. She was never singled out or discriminated against. I have never spoken the words as alleged or commented on her appearance or smell."

Miss Orr claimed Mrs Shanmugam had made her want to leave her own job. She said: "She was just trying to be nasty to me all the time. It makes you feel down-trodden."

Mrs Shanmugam resigned in November last year days after an argument between the two women over holiday dates. Mrs Shanmugam claimed Miss Orr pushed her and she left work because she was upset after being allegedly assaulted.

Miss Orr said she accidentally touched Mrs Shanmugam when she tripped over an office chair.

The hearing continues.