An employment law firm with many recruitment clients has reached a settlement with a former employee, who claimed she was sacked after announcing she was pregnant.

Tarlo Lyons paid an undisclosed sum to lawyer Sarah Collins, 38, who had claimed multi-million pound damages for sexual discrimination and unfair dismissal.

Collins claimed she was sacked from her £105,000-a-year job, and said she was the only woman among 20 partners for most of her five years at Tarlo Lyons.

A joint statement said: “The Employment Tribunal proceedings between Tarlo Lyons and Sarah Collins have been settled. The full terms of settlement will remain confidential but both parties confirm that as part of the settlement Miss Collins unreservedly withdraws all her claims before the tribunal including her claims of sex discrimination against Tarlo Lyons. Miss Collins confirms that her complaint to the tribunal was never a complaint of sexual harassment.”