The panel ruled that the Police frontman and his wife unlawfully dismissed Jane Martin after she became pregnant, which they determined was a form of sexual discrimination.
The couple issued a statement saying that they are "devastated" by the verdict.
"Jane Martin was always treated well and generously as an employee, and we remain stunned at her actions and at the verdict of the tribunal," Styler said in the statement.
"I am devastated that the tribunal's judgment makes this unjust and unfair attack on Sting and me," she said.
Martin said she had worked for the couple for eight years, preparing meals for superstar guests including Madonna and Elton John.
Martin alleged that Styler was unhappy about her pregnancy and forced her to work long hours, getting upset when she took sick leave and eventually dismissing her after she became pregnant in 2005.
In today's ruling, the panel determined that Martin was unlawfully dismissed by Lake House Estate--Sting and Styler's management company--and was a victim of sexual discrimination, reports the Associated Press.
The couple may face a substantial compensation payment, which will be determined at a June 8 hearing.
Styler said the couple planned to appeal the verdict.
For more on Sting, check out his NME.com page.
Sting: Obama best person to handle world's 'mess'
Oct 29, 2009 11:00 am PDT
Sting isn't a religious man, but he says President Barack Obama might be a divine answer to the world's problems. "In many ways, he's sent from God," he joked in an interview, "because the world's a mess." But Sting is serious in his bel...
Mar 13, 2009 8:00 am PDT
It's probably safe to say that Sting's new message in a bottle will age slightly better than his last. The tantric one is following in the esteemed footsteps of Paul Newman, Francis Ford Coppola and, uh, Madonna, announcing that h...
Every sip you take: Singer Sting is selling wine
Mar 12, 2009 9:00 am PDT
After singing of "Fields of Gold," British rock star Sting is tending fields of grapes as he prepares to market red wine made at his country estate in Tuscany. Some 30,000 bottles of wine produced on the property will go on sale in Septem...
Sting thrills Romania with Elizabethan music
Feb 11, 2009 8:00 am PST
Sting thrilled a Romanian audience of 4,000 with his renditions on the lute of Elizabethan music interspersed with classics from his Police days such as "Roxanne." The British musician teamed up with Bosnian musician Edin Karamazov to giv...
Sting brings music, eco-message to Sundance fest
Jan 20, 2009 3:00 am PST
Sting drew cheers with an impromptu jam session at the Sundance Film Festival, but his real purpose was to bring attention to a film dealing with the singer's other passion: rainforest preservation. Joe Berlinger's "Crude" traces 15 years...