£350,000 for the nurses sacked for being lesbian

Margaret Durman, 55, and Penny Smith, 41, were dismissed from a care home after they were accused of allowing the physical and sexual abuse of residents.

But a tribunal found the allegations were groundless and that the couple had been victims of sexual orientation discrimination.

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It said Barchester Healthcare, which ran the Cornwall care home where they worked, unfairly "trawled" staff for complaints, suppressed documents and mishandled the disciplinary procedure.

Yesterday, the nurses, who both earned at least £24,000 a year, were awarded a record payout for a case involving the Royal College of Nursing.

The figure is thought to be between £350,000 and £500,000. The tribunal report stated:

"It is hard to see how any dismissal, conducted by an employer of such size, could be so very bad unless sexual orientation discrimination was the root cause of it.

"We are not satisfied that a heterosexual couple would have been treated the same."

Miss Durman and Miss Smith had been together for a year when they were sacked from Kernow House care home in Launceston in September 2005.

Miss Durman, a registered nurse for 35 years, had been manager of the home since 2001 and both had exemplary records.

Following their dismissal, however, they were put on the Protection of Vulnerable Adults list, which meant they could no longer work as nurses.

They have since been removed from the list but said yesterday that their lives had been "ruined" by their ordeal.

Both have undergone counsellingand they have been forced to cash in pensions and sell one of their homes.

Miss Smith, who has a 15 year old son, said: "I've developed various physical disorders - we have seen counsellors and we are having some more treatments. We are definitely not the same people."

Miss Durman added: "It has been extremely traumatic for us and our families. What has caused us the most distress is the damage Barchester have caused to our reputation.

A spokesman for Barchester Healthcare, which looks after 100,000 men and women nationwide, said its procedures had been reviewed in light of the tribunal findings.

"The sexual orientation of its staff is of no interest to Barchester.

"While Barchester is clearly disappointed by the outcome of the tribunal, its primary concern has always been, and remains to be, the welfare of its residents at Kernow House."