A former senior manger with Microsoft Ireland told her new superior she wanted to be made redundant because she believed she was "standing on the side lines", the High Court was told yesterday.

However, Lori Brownell, who was appointed as worldwide head of localisation with Microsoft after Breda Pickering turned down the position in autumn 2000, said she had told Ms Pickering there was no legal basis for her to be made redundant or to avail of the company's Reduction In Force (RIF) package.

Ms Brownell yesterday began her evidence in the continuing action by Ms Pickering (43) against Microsoft Ireland Operations Limited, arising from the termination of her employment four years ago.

She is claiming constructive dismissal and is seeking damages for alleged negligence, breach of contract and failure to get her redundancy entitlements and stock options. The defence denies her claims.

Ms Brownell yesterday said she was appointed Microsoft's worldwide head of localisation on November 16th, 2000, which resulted in the US and Ireland localisation divisions of Microsoft being amalgamated. The court heard that Ms Pickering had been responsible for the Irish and European localisation division of Microsoft before this amalgamation. Ms Brownell, based in Seattle, and Ms Pickering, based in Dublin, had reported to the same superior manager prior to the amalgamation.

After she took up her position, Ms Brownell said Ms Pickering had to report directly to her. She was "aware this could be challenging". She said Ms Pickering had turned down the worldwide localisation post because she didn't want to re-locate to the US. She said it was "not at all surprising" Ms Pickering had been offered the job as she was "thought of very highly" in Microsoft.

On November 28th, 2000, Ms Brownell said she and Ms Pickering met in Ms Brownell's office in Redmond, Seattle. Ms Pickering had "raised a couple of issues" with her. Ms Brownell said she had organised one-on-one meetings with various members of Ms Pickering's 350-plus team without informing Ms Pickering and Ms Pickering had asked to be kept aware of these meetings. Her request was "perfectly reasonable".

Also at this meeting, Ms Brownell said Ms Pickering put to her a proposal of Ms Pickering's being based in Spain for the first quarter of the year 2001, travelling to subdivisions of Microsoft based in Europe. "I was a little taken aback or surprised that she felt she could manage a team of 350-plus people remote," she said. Ms Brownell said she asked Ms Pickering to send her her goals and objectives for this proposed role.

On January 11th, 2001, Ms Brownell said Ms Pickering visited her again at Microsoft's offices in Seattle. "I recall I was sitting with my back to the door and I asked her to wait until I finished writing an email," she said.

She said Ms Pickering had said: "I want you to RIF me." (It is claimed by Ms Pickering in the proceedings that a RIF traditionally allowed Microsoft employees to relocate within the company.) "I was very surprised , I asked her why," Ms Brownell said. She said Ms Pickering had spent about 20 minutes explaining why she could be "riffed" and that Ms Pickering had said she was "standing on the side lines watching what was happening". Ms Brownell said she told Ms Pickering her position was "not redundant", she would hate Microsoft to lose "a great employee" and she did not want her to leave the company.

By January 24th, 2001, Ms Brownell said Ms Pickering's request for a RIF had been discussed and Ms Pickering was informed by phone that there was "no justification for a redundancy for a RIF" because Ms Pickering's position would be replaced if she left.

The hearing continues today before Mr Justice Esmond Smyth.