A transsexual council worker who said he was discriminated against and made to resign after starting to live as a man in 2002 has lost his tribunal case.
Andy Baldwin, formerly Andrea, claimed he felt unsafe at Brighton Council, and colleagues were uneasy and suspicious.
But a tribunal said there was no discrimination, because workers said they did not know about the sex change.
Mr Baldwin, 34, co-ordinator of the lesbian, gay, bisexual and transgender safety forum, was paid £26,000 a year.
He told the tribunal hearing in November that he was forced to resign in January 2003 because he felt unsafe working for the council as a transsexual.
The city council insisted that his line manager and all his senior colleagues were not aware that he was undergoing a gender change.
Mr Baldwin gave evidence at the tribunal with a beard and a low voice - the result of monthly hormone injections.
After the hearing, Sue John, deputy leader of the city council, said the judgement was "an accurate reflection of events".
She said: "The council is well aware of its responsibilities to all sections of the city's diverse population.
"Unfortunately, the unfounded claims made at this tribunal were potentially damaging to the council generally and to certain individuals in particular."
Councillor John added: "Our head of community safety, Linda Beanlands, was subjected to a particularly needless and unpleasant attack.
"Her reputation as one of the council's most caring managers and one of the city's greatest champions for equality is restored."