A former senior manager with Microsoft's Irish operation was holidaying in Ashford Castle when she received a call to say that she would not be able to avail of a reduction in force (RIF) severance scheme with the company, which included an option to be slotted into a new position, the High Court was told yesterday.

Breda Pickering, with an address in Kilternan, Dublin 18, has taken proceedings against Microsoft Ireland Operations Limited, claiming damages for alleged negligence, breach of contract and failure to get her redundancy entitlements and stock options.

The court has already heard that she realised some €13 million profit in stock options during her 13-year employment with the company.

Ms Pickering claims she was constructively dismissed from the company after another woman secured the position of worldwide localisation manager with Microsoft in autumn 2000.

After that appointment, Ms Pickering, who was the Dublin-based director of localisation, claims she was "frozen out" and "isolated" within the company which, she claims, led to her experiencing a nervous breakdown in early 2001.

Yesterday, in continued cross-examination by Paul Sreenan SC for Microsoft, Ms Pickering said she received a phone call from Microsoft Ireland in January 2001 in which, she said, it was made clear she would not be offered an RIF package. She said she was told there would be no RIF for her and that it "wasn't acceptable legally".

She said this situation left her feeling "vulnerable" and "betrayed" by the company.

She said she had made her feelings known to her colleagues. She took sick leave from January and her employment was eventually terminated in August 2001.

Ms Pickering's GP, Dr Tiernan Murray of Goatstown Medical Centre, said Ms Pickering had experienced panic attacks, sleeplessness, anxiety and depression for which he had prescribed appropriate medication.

Asked by counsel if there were any other factors which could have contributed to her emotional state, Ms Pickering said that some €500,000 worth of valuables and two cars had been stolen from her house at Easter 2001.

The thefts had attracted widespread media attention.

Her nephew had also been killed in a car accident the previous July.

However, she denied that these events would have had any bearing on her condition.

Asked about her failure to respond to information about applying for disability allowance which had been provided by Microsoft, Ms Pickering said the letter had been inappropriate.

"I would have expected that, after 13 years as a senior manager in the company, I wouldn't have got a letter from someone I hadn't heard of," she said.

The case resumes on Tuesday before Mr Justice Esmond Smyth.