The Muslim chairman of an Islamic school in Oxford has been ordered to pay a woman teacher compensation after a tribunal ruled she had not been paid the minimum wage.

Monique Buckner successfully sued Dr Hojjat Ramzy despite an employment panel's hearing that they had formed "a personal, spiritual and educational relationship".

Relations between the chairman of the independent Iqra School and the teacher broke down later, when he reduced her working hours and eventually she left her employment, suing Dr Ramzy and the Iqra Islamic School in Oxford for racial discrimination and work-related offences under the 2002 Employment Act.

Yesterday, the employment tribunal panel at Reading dismissed the racial claims but ruled that 52-year-old Dr Ramzy and the school had breached the Act in terms of pay, her contract of employment and an unsatisfactory grievance procedure.

The panel awarded 33-year-old Ms Buckner a total of almost £800 compensation. However, she lodged an official appeal against the tribunal's findings.

In awarding Ms Buckner the money, tribunal chairman Robin Lewis said: "We found that Ms Buckner and Dr Ramzy formed a personal, spiritual and educational relationship."

Dr Ramzy told the tribunal he had attempted to console her after a potential marriage suitor he had tried to match her with had turned her down.

"I told her that she was pretty and I was sure she could find a husband," he said. "I told her that if I were 20 years younger I would have married her myself. However, the only reason I said this was in order for her to feel better as we cared for her well-being."

The panel heard that Ms Buckner had recognised English teaching qualifications and was also claiming three breaches of the Employment Act - unpaid wages, holiday pay and notice pay.