Barnet have reported Notts County to the Football League and Football Association following Martin Allen's managerial defection from Underhill to Meadow Lane.
Allen walked out on the Bees after just 19 days to take charge of League One strugglers Notts County on a one-year deal.
Barnet, who are fighting desperately to stay in League Two, claim the Magpies only contacted them after they had struck a deal with Allen and are now seeking compensation for his services.
Bees chairman Tony Kleanthous said: "We agreed a deal with him (Allen) until the end of the season and we helped and supported him throughout.
"I told him that we were prepared to offer a new long-term deal that would certainly have provided him with a comfortable six-figure living but he made it clear that he wanted a chance to manage a team in League One next season.
"He said he wanted to take this opportunity despite the perfect happy working environment which we provided for him at Barnet FC."