A GAY theatre worker who suffered months of bullying, taunts and discrimination at the hands of his boss has won his legal battle for compensation.

Bookings manager Fausto Gismondi was nicknamed "gay boy" by his manager, Ed Tutty, when they both worked at the Gala Theatre, in Dur-ham City.

Yesterday, an industrial tribunal ruled in favour of Mr Gismondi's claims that he had been constructively dismissed from his post, and launched stinging criticism against Durham City Council for failing to deal adequately with the problem.

As he learned of the judgement, Mr Gismondi, 28, said: "The tribunal's decision is a huge relief.

"No one should have to endure that sort of treatment at work, and yet the council failed to do anything to stop the harassment.

"I want to make all employers understand that it is against the law to turn a blind eye to this sort of discrimination."

After Mr Gismondi complained to his employers, the council took steps to discipline Mr Tutty, but only for a minor breach of the authority's equal opportunities policy.

The tribunal found the council's conduct in failing to take steps against Mr Tutty "ought to cause them considerable shame", and referred to the measures the council took as "an utter shambles", saying the authority had failed in its duty to Mr Gismondi.

The tribunal added: "It is hard to envisage conduct more likely to shatter the trust and confidence of an employee in his employer."

The case, which was backed by the trade union Bectu and law firm Thompsons, is one of the first to be heard under new Sexual Orientation Regulations, which came into force in December 2003.

Jo White, Mr Gismondi's solicitor, said: "This is an important decision because it highlights the responsibilities employers have under the sexual orientation regulations.

"Gay men and women have the same rights to be treated equally and with respect as anyone else at work."

Bectu's legal officer, Andy Egan, said: "The treatment meted out to our member was appalling, and we are glad to have been able to seek redress for him successfully."

He added: "We hope employers throughout this country will get the message that they cannot stand by and allow bullying and harassment of gay workers; the trade unions will take action."

The amount of compensation due to Mr Gismondi, of Houghton-le-Spring, County Durham, is expected to be decided at a hearing yet to be arranged.

Mr Tutty, who is now a Press officer for the city council, declined to comment until the end of all legal proceedings. During evidence given earlier to the tribunal, Mr Tutty admitted using the phrase "gay boy", but insisted it was only office banter.

A Durham City Council spokesman said: "At this point, the council is not in a position to be able to comment in any detail on the findings, in the light of a possible appeal."