TORONTO - Ontario should consider pulling funding from a Christian group that has a history of human rights complaints and was recently ordered to compensate a worker who had to quit after revealing she was gay, the province's opposition parties say.

The Human Rights Tribunal of Ontario recently ordered Kitchener, Ont.-based Christian Horizons to compensate former employee Connie Heintz and to end a prohibitive code-of-conduct contract for its 2,500 employees -- the second time the tribunal has had to deal with a complaint against the evangelical organization.

The tribunal's predecessor, the Human Rights Board of Inquiry, ruled in 1992 that two women fired by the organization for being in common-law relationships be paid $65,000.

Christian Horizons is the largest community living service provider in Ontario and is funded almost entirely by the province, receiving about $75 million each year. It operates more than 180 residential homes for people with developmental disabilities and provides support and services to about 1,400 people.

It requires all staff to sign a contract which forbids them from engaging in certain behaviours that go against its religious beliefs, such as adultery, extra-marital sex,  homosexuality and "endorsing'' alcohol or cigarettes.

The policy, adopted after the first ruling, violates the basic human rights of the organization's workers, the tribunal concluded.

Cheri DiNovo, a critic for Ontario's New Democrats, says it's unacceptable for an organization being paid for by the public purse to require workers to sign such a contract, and the government must take steps to stamp it out.

"It's disgusting, it's horrible,'' said DiNovo, a United Church minister who has performed same-sex marriages. "I don't think there's anything Christian about being homophobic.''

NDP Leader Howard Hampton says Ontario's Liberal government must make it clear it won't keep funding Christian Horizons if it continues to impose its religious beliefs on its employees.

"What may be required is a plan handoff,'' he said. "In other words, start the process now of asking for other organizations who are prepared to come together and take on the responsibility.''

Community and Social Services Minister Madeleine Meilleur wouldn't say what action might be taken against Christian Horizons, as it still has 30 days to appeal the tribunal's April 15 decision.

All agencies funded by the province must abide by federal, provincial and municipal laws, a requirement that is stated in their contract, she said.

If an agency fails to comply, the government would work with it to help make the adjustment, Meilleur said.

"If they don't respect the law of the province, they are in breach of our contract,'' she said in an interview from Ottawa.

"What happens if someone is in breach of contract? We take action. But to tell you the truth, it's never happened under my leadership.''

The province must "sanction'' the organization if it doesn't uphold the law, but it must consider its course of action carefully so as not to disrupt the care that's being provided, said Progressive Conservative Leader John Tory.

"They should be told that we just can't accept a situation in which any organization, like this or any other one, repeatedly disregards the law of the land,'' said Tory.

In its ruling, the tribunal ordered Christian Horizons to pay Heintz, 39, $23,000 plus interest, saying the discriminatory policy had the effect of making her feel like a "pariah'' within the organization.

Heintz, who came from a traditional Mennonite family and considered herself a devout Christian, began working at a Waterloo home operated by the group in 1995. By 1999, Heintz was beginning to question her sexuality, according to the tribunal's 73-page ruling.

She confided in two co-workers and soon after, was confronted by a supervisor. After revealing she was a lesbian, she said she was told it was grounds for dismissal and was harassed on a regular basis. Heintz was subsequently forced out in September 2000 because of her sexual orientation, she said.

The tribunal ruled that Christian Horizons must also pay wages and benefits Heintz would have received in the 18-month period after she left, launch basic human rights training for all employees and adopt anti-discrimination and anti-harassment policies.

Christian Horizons has defended its policy in the past by saying it recognizes society's laws but it also must obey God's laws.