Jose Mourinho has admitted shouting "son of a b****" towards Eva Carneiro - but denies the phrase has any sexist connotations.
Carneiro is claiming constructive dismissal against Chelsea and has a separate, but connected, personal legal action against Mourinho, who left the club in December, for alleged victimisation and discrimination.
The case, which is anticipated to be heard over seven to 10 days until June 24, opened at Croydon Employment Tribunal in south London on Monday, but could be settled at any time.
All three parties must agree to a settlement for the tribunal, which would be accessible to the public and the media, to be averted.
The tribunal panel was read an extract from Mourinho's statement in which he concedes that he used the Portuguese term "filho da puta", meaning "son of of a b**** or whore", but that he had been using it throughout the match.
He said: "Filho da puta is a phrase I often use, all of the players know it. There is no sexist connotation in the use of the phrase - it is just like saying 'f*** off'.
"In the world of football, a lot of swear words are used."
Referring to footage of earlier on in the August 8 match against Swansea, the former Chelsea manager highlighted that he had also been using the term then.
He added that Cesc Fabregas had also used the Spanish equivalent of the term when a Chelsea player was fouled during the game.
In his statement, Mourinho said: "Cesc and I both speak English well, but in the heat of the game we both swear in our mother language.
"Eva was not on the pitch at that point in time."
However, Dr Carneiro alleges that Mourinho used the term "Filha da puta", meaning "daughter of a bitch or whore".
Ms O'Rourke said: "He uses the word 'filha' because he is abusing a woman."
She added that Dr Carneiro heard the term "clearly from behind her" as she ran on to the pitch.
It was also claimed that Carneiro was offered some £1.2million to settle outside of the tribunal but it was rejected.
A skeleton argument submitted to the tribunal on behalf of Chelsea and Mourinho stated: "The respondents have taken these steps only because they believe that it is in no-one's interests that this dispute should be determined through litigation.
"They are conscious that, whatever the facts of the matter, it is likely to be widely and incorrectly assumed that they could have avoided this coming tribunal."
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