While working at Victoria Hospital in Kirkcaldy, Ms Peggie objected to the trans medic’s use of the female changing room.
She also made reference to the situation being similar to men using the female prison estate, with Dr Upton lodging a formal complaint.
The nurse was placed on special leave in December 2023 and suspended in January 2024. Two patient safety concerns were then raised.
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Ms Peggie learned she had been cleared of all misconduct allegations on July 15, the eve of the tribunal resuming and 18 months after the changing room dispute.
It is understood the nurse is seeking compensation from Dr Upton and NHS Fife if she wins the tribunal, according to The Courier newspaper.
She is seeking a pay out from both for “unlawful discrimination”, “harassment”, and “hurt feelings”.
The newspaper also revealed that Ms Peggie wants an additional 25% compensation from NHS Fife due to an “unreasonable delay” to the health board’s delay to its internal investigation into her conduct.
The demands were set out in May 2024 and include a “protected disclosure detriment” declaration from both respondents.
The nurse may also ask for a specific policy update from NHS on the protection of single-sex spaces, with ramifications for the health service across the country.
Evidence from NHS Fife’s equality and human rights lead Isla Bumba told the tribunal that a Scotland-wide NHS policy was “soft launched” in October 2024.
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That policy, only released to the public under Freedom of Information legislation, states that denying a trans person the right to use their preferred facilities could be “unlawful discrimination”.
It adds that trans individuals do not require a gender recognition certificate and “should not routinely be asked to produce it as evidence of their legal gender”.
However the nationwide guidance on transgender staff inclusion was quietly pulled in February as a result of the ongoing employment tribunal.
NHS Fife did not have its own specific transgender workplace policies, with Ms Bumba telling the tribunal she relied on the guidance of other health boards.
She then told senior staff at NHS Fife that it could be “deemed discriminatory” not to allow a trans person access to facilities that “align with their gender”.
She recommended that line managers had a conversation with Dr Upton on where they were most comfortable.
That conversation did take place, with Dr Upton advising they had used female changing rooms before and were therefore comfortable to continue.
The tribunal heard, however, that female staff using the emergency department locker room were not informed or asked whether they were comfortable sharing facilities with a transgender person.
The tribunal also heard that NHS Fife’s equality and human rights lead had not consulted the Workplace (Health, Safety and Welfare) Regulations 1992, which states that changing facilities will not be suitable “unless the include separate facilities for or separate facilities by, men and women where necessary for reasons of propriety”.
However, a verdict is not expected anytime soon.
Both legal teams return to the Dundee Tribunal Hearing Centre on September 1 and 2, where they will set out their oral submissions.
From there, it is for Employment Judge Sandy Kemp to decide when to give his judgment.
It is highly unlikely he will hand down his judgment on the day and instead is expected to consider the case in avizandum – a period of private consideration.
Similar cases where this has been used – including the Scottish Government‘s 2023 challenge of the gender reform block – took months.
In that case, judgment may not be made until December.