The Labour Court has recommended that a senior executive with the Irish Creamery Milk Suppliers' Association who claimed she was bullied and harassed by a colleague should be paid €60,000.
The recommendation upholds previous recommendations by a rights commissioner. The woman, who was hired as director of organisation by the farm body in April 2002, claimed she was subjected to bullying and harassment by a senior member of management.
The ICMSA rejected the woman's claims but accepted that the employer-employee relationship had broken down.
The dispute initially went to a rights commissioner, who recommended the woman should agree to resign voluntarily at an early date.
In the recommendation, the commissioner said: "In return the association should agree, on a once-off and totally exceptional basis, to make an all-in ex gratia lump sum payment of €60,000 to the worker, with this payment to be made on as tax-efficient a basis as possible." Both sides were urged to resolve the situation by May 31st.
However, both the ICMSA and the woman appealed to the Labour Court.
SIPTU, on behalf of the woman, told the court the rights commissioner's award did not adequately compensate the woman.
"The compensation amount should be increased substantially," it said.
"The worker had an expectation of a long and successful career in the company and now has to seek alternative employment which will be very difficult."
The ICMSA said it was experiencing significant financial difficulties and considered the award excessive.
The court upheld the recommendation of the rights commissioner.