Taylor said: "It would be enough to constitute a breach of contract.
"As David's union we would be willing to take that up with the Premier League if he so wished."
The Leeds legend is out of contract in the summer, and Gray's decision not to consider him for first or reserve team games means he has probably played his last game for the club.
Gray insists his decision is based on "footballing reasons" and claims Batty "has not been shunned".