What began as a workplace dispute inside a Scottish hospital has now spiraled into a major legal fight, touching on some of the most divisive debates in the UK today—single-sex spaces, gender identity, and the rights of employees.
At the heart of it is veteran nurse Sandie Peggie, who says she was unfairly suspended after objecting to sharing a women’s changing room with a transgender colleague.
The Christmas Eve Incident
The controversy stems from an incident on Christmas Eve 2023 at Victoria Hospital in Kirkcaldy.
Peggie complained about having to undress in front of Dr. Beth Upton, a trans woman medic.
Soon after, Dr. Upton accused her of bullying and harassment, which led NHS Fife to place Peggie on special leave. What followed was a drawn-out employment tribunal that has cost the health board more than £220,000 so far.
A Case Built on Equality Law
Peggie is now taking both NHS Fife and Dr. Upton to tribunal, claiming sexual harassment, victimisation, indirect discrimination, and harassment based on her protected beliefs under the Equality Act 2010.
She argues she should not have been punished for standing up for her rights to single-sex facilities after 30 years of unblemished service.
The Lawyer’s Hard-Hitting Submission
In closing arguments before the Dundee tribunal, Peggie’s lawyer Naomi Cunningham argued that trans women without a Gender Recognition Certificate (GRC) are still legally and factually men.
Referring to a recent Supreme Court judgment, she told the panel:
“Trans women are men. That reality is enshrined in law.”
Cunningham said Dr. Upton does not hold a GRC and therefore has no legal right to enter women-only spaces.
She described NHS Fife’s treatment of Peggie as a “witch hunt” and accused the board of smearing her character and even trying to “drive a wedge” between Peggie and her lesbian daughter.
Claims of Smears and Punishment
Cunningham further alleged that NHS Fife carried out a “character assassination” against Peggie, spread “countless lies,” and even faced censure from regulators over its handling of the case.
She also criticised an argument she attributed to Dr. Upton’s team—that the NHS had a duty to “educate Peggie out of her bigotry.” Cunningham called that stance “morally repugnant.”
Wider Implications After Supreme Court Ruling
This tribunal isn’t happening in a vacuum. Earlier this year, the UK Supreme Court clarified that under the Equality Act, the terms “woman” and “sex” refer to biological women and biological sex.
Following that ruling, the Equality and Human Rights Commission (EHRC) told NHS Fife to correct its policies around single-sex spaces.
The EHRC chair, Baroness Kishwer Falkner, confirmed that the health board admitted it had failed to carry out an equality impact assessment and has since commissioned one, due by the end of September.
Mounting Costs and Public Pressure
The ongoing tribunal has already cost NHS Fife close to a quarter of a million pounds, adding to pressure on the health board to settle the issue.
For now, neither Peggie nor Dr. Upton are expected to return to give further evidence.
The Bigger Picture
This case is being closely watched across the UK because of its potential to reshape workplace rules on trans inclusion and single-sex rights.
With both legal and political stakes high, the tribunal’s outcome could influence how hospitals, schools, and other public bodies interpret the Equality Act moving forward.
