Lenka Sheridan, of Sudbury, Suffolk, claims an attempt was made to force her out of Alliance Insurance Management when she returned from maternity leave.

Ms Sheridan told an employment tribunal her personal assistant was used to feed information about her to directors.

John McLaren-Stewart, chief executive of the firm, said this was "nonsense".

He also denied having an affair with Ms Sheridan's personal assistant, Samantha Thomas.

'Ridiculous statement'

The tribunal was told e-mails had been exchanged between Mr McLaren-Stewart and Ms Thomas, in which Mr McLaren-Stewart said he was going on a boat trip.

One, from Ms Thomas to Mr McLaren-Stewart, read: "Imagine what we could do on a boat, which was one of my fantasies, if you remember."

In response to a suggestion from Ms Sheridan's representative he was having an affair with Ms Thomas, Mr McLaren-Stewart said: "That is the most ridiculous and outrageous statement. Whether she sends me an e-mail or not is her business."

Ms Sheridan is claiming unfair dismissal and sexual discrimination against the company she worked for in Bury St Edmunds.

She claims a male colleague was given a director's position while she was on maternity leave that she thought she was being lined up for.

The tribunal, held in Bury St Edmunds, continues.