Shameful. I am not familiar with British law, especially since she was employed by contract. However, my sense is that the UK is ahead of the US on equal rights, so perhaps she will win.
Here is a bit more information, but please excuse the insulting headline on the article.
THE 6FT 3IN MAN 'FIRED FOR GOING TO WORK IN A DRESS'
Express.co.uk
By Natalie Chalk
August 26, 2010
http://www.express.co.uk/posts/view/195520/The-6ft-3in-man-fired-for-going-to-work-in-a-dress-Quote from: Rachel MillingtonThe managers called a staff meeting that I wasn't allowed to attend, and told the rest of the staff they didn't like me being Rachel, but they had to put up with it by law.
"I was mortified. A week later, they gave me an appraisal, and said that although my work was good I had made other members of staff feel uncomfortable and ordered me to apologise to them. I have never felt so embarrassed."
Miss Millington claims she then received a phone call from her bosses three days after the meeting telling her not to go back to work.