Heather Cockbain, a former temp controller at law recruiter Career Legal, has won a five-figure compensation sum from her ex-employer.

This is the second time Cockbain has won a case against her former employer in the space of a year.

Career Legal paid “substantial” damages plus legal costs following a libel case raised by Cockbain.

Cockbain started working for a competitor, Law Support, after being dismissed from Career Legal for gross misconduct in 2003.

Cockbain always denied the charges and won a separate five-figure compensation claim from Career Legal at an employment tribunal in June last year.

But on 27 January last year, Denis Simpson, a director of Career Legal, sent a letter to all Cockbain's clients announcing she had been dismissed for gross misconduct.

In October, Cockbain instructed solicitor Carter Ruck to issue defamation proceedings against Simpson because of the letter.

She was subsequently able to claim defamation because the tribunal had found that found she was unfairly dismissed.

As a result, Career Legal agreed to publish a letter of correction and apology to Cockbain and 55 clients and in June agreed to pay her “substantial compensation”.

Cockbain said: “I am pleased the whole sorry matter has reached a very satisfactory conclusion.”

Una McGurry, a consultant at Career Legal and girlfriend of MD Charles Norton, claimed that Cockbain bought the company into disrepute by making disparaging remarks about one of the firm’s directors at a client lunch.

Cockbain refuted the allegations and took her case to an employment tribunal at Woburn Place. In June last year the tribunal panel decided in just seven minutes that Cockbain had been unfairly dismissed.

Mike Swaby, director of Career Legal, said: “We were interested in protecting our business and sought advice from our lawyers, who said we were within our rights to write to clients. This legal advice was not exactly correct.”

He said the matter had now been settled and that Career Legal's lawyers had paid damages and costs. He added: “I wish Heather well and hope the matter is concluded.”