A female worker has been successful in her claim of unfair dismissal.
Karen Barrett resigned from her position as town Clerk in December 2007 after taking a year's sick leave with breast cancer, the Morley Observer reports.
The 49-year-old had been suspended from her role 48 hours before she was due to return to it.
Councillors had suggested that she should see an occupational therapist before assuming her responsibilities.
Although the decision was reversed, Ms Barrett left her job and jointly sued councillor Paul Cook and Morley town council.
During a recent tribunal, it was ruled that the local authority, which operates in West Yorkshire, was guilty of unfair dismissal.
The judgement read: "The reason for her constructive dismissal was the persistent avoidance by the first respondent (the town council) of the question as to how it should best address her long and complex grievance in a fair and prompt way given the limited resources at its disposal."
The amount Ms Barrett will receive in compensation will be decided at a later date.