A court in Shenzhen has heard what is believed to be the country's first lawsuit over gay workplace discrimination.

A court in Shenzhen has heard what is believed to be the country's first lawsuit over gay workplace discrimination.

The plaintiff was fired after he was revealed as gay in an online video, and his action was heard last week by the Nanshan District People's Court in the southern city.

Liu Xiaohu, a lawyer for the plaintiff, told reporters the case "will definitely have an impact" on views of gay rights in China.

China decriminalized homosexuality in 1997.

More recently, tolerance has grown in larger Chinese cities, but conservative attitudes remain deeply engrained and workplace discrimination is common.

The Shenzhen case was filed in November by a man using the pseudonym Mu Yi.

He was filmed by police in October arguing with another gay man on a Shenzhen street. The video went viral, with some users making their own videos playing on a speech made by the other participant, who was wearing a "little red hat."

A week later, Mu was fired from his job as a designer.

Mu sued in November, claiming he was fired because he was gay.

The employer says Mu was dismissed for reasons including "poor service attitude" and improper attire, according to the Guangzhou-based Yangcheng Evening News.

Mu is seeking an apology as well as 50,000 yuan (US$8,000) compensation.

A decision on the lawsuit — which has become known as the "Little Red Hat" case — is expected within the next three months, Liu said.

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