Breckland Council has put aside a sum believed to run into thousands of pounds after a former member of staff filed an employment tribunal claim against it.
The tribunal is listed among a number of financial risks the council faces, and provisions have been made in its 2011-12 costs for the case.
It is the first claim the council has faced for at least five years, but the council has refused to disclose the amount of money involved.
It also declined to release the name or position of the person who filed it, when it was filed or the basis of the claim.
A spokesman for Breckland Council said: 'There is currently a case against us which we are defending. To give any details at this stage would be inappropriate.'
Other financial risks include a legal battle over a right of way, the new right for members of the community take over local services, and changes to the way future leases could be classified in the accounts.
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