Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
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If you’re managing a business in the UK, dealing with employee dismissals can sometimes feel like navigating a legal minefield.
But what happens when an employee takes their case to tribunal and wins an order for reinstatement? For many employers, this scenario raises tough questions-both practical and legal.
What does reinstatement actually involve? What obligations will you have if an employment tribunal orders it, and what are the real-world risks if you get it wrong?
In this guide, we’ll walk you through everything you need to know about employee reinstatement orders after unfair dismissal claims-including how to stay compliant and protect your business.
If you’re an employer (or about to become one), understanding this legal process is a genuine must.
Let’s take a look at what these orders mean, what’s expected of you, and where you can seek support if you find yourself facing a reinstatement decision.
What Is an Employee Reinstatement Order?
A reinstatement order is one of the main remedies available to employees who have been found to have been unfairly dismissed. Put simply, if a worker successfully wins their case for unfair dismissal at a tribunal, they can ask to be given their old job back-and the tribunal can require you, as the employer, to take them back. Here’s what makes reinstatement unique:- Reinstatement is employee-driven. It only comes into play if the dismissed employee specifically requests it after an unfair dismissal finding.
- It’s a legal command, not a suggestion. If a tribunal grants a reinstatement order, you’re legally required to restore the person to their previous role.
- All terms and conditions apply. You’ll need to put the person back on the same pay, terms, and employment rights they would have enjoyed had they never been dismissed.
When Might a Tribunal Grant a Reinstatement Order?
Not every unfair dismissal case results in a reinstatement order. In the UK, the employment tribunal will only impose such an order if:- The employee actually requests to be reinstated (not every claimant does).
- The tribunal agrees that reinstatement is practicable-that is, the business can realistically give the employee their old job back.
- There are no compelling reasons (such as a breakdown in trust, or the role genuinely no longer existing) that would make reinstatement inappropriate.
What Must an Employer Do After a Reinstatement Order?
If your business is subject to a reinstatement order, the law is clear: you must treat the employee as if the dismissal never happened. This means:1. Re-employ in the Same Position
The employee should resume the same job, at the same level, with the same responsibilities as before. If their original post no longer exists, you may need to discuss an equivalent alternative (or explain to the tribunal why reinstatement isn’t feasible).2. Restore All Terms and Conditions
Any improvements to pay or benefits that would have applied during their absence (for example, annual pay rises or additional holiday entitlement) must also be granted. All previous rights and contractual benefits are fully restored, as if there had been no break in service.3. Pay Back Wages and Benefits
The employee is entitled to any lost salary or benefits (including pension contributions, bonuses, and holiday pay) for the period between dismissal and reinstatement. This may mean substantial back-pay, depending on how long the legal process took.4. Restore Continuity of Employment
Continuity of service can be important for employment rights-such as redundancy calculations, future unfair dismissal protections, and pension entitlements. Reinstatement means the employee’s service is counted as unbroken throughout.5. Treat the Employee Fairly Upon Their Return
You cannot treat the reinstated person less favourably because they brought a claim. This means no reprisals, no changed attitude from management, and definitely no “cold-shouldering” or subtle discrimination. Tribunals will take a tough line on any victimisation, and further claims (such as for constructive dismissal or discrimination) can arise from mistreatment post-reinstatement.What Are the Risks of Not Complying with a Reinstatement Order?
Failing to comply with a reinstatement order is a serious matter and can lead to:- Additional financial penalties – The employment tribunal can order you to pay between 26 and 52 weeks’ gross pay as further compensation in addition to any basic award.
- Compensation claims – The employee may receive even higher compensation for loss of earnings if you refuse to reinstate.
- Damage to business reputation – Being seen as non-compliant with tribunal orders can harm staff morale, recruiting efforts, and even customer perception.
- Further legal action – The employee may bring additional and separate tribunal claims for breach, victimisation, or unfair treatment post-reinstatement.
How Should Employers Prepare for and Respond to a Reinstatement Order?
Even if reinstatement orders are rare, it’s important to know your responsibilities-and have a plan in place. Here’s how to prepare and what to do if you’re given such an order:1. Understand When Reinstatement is Possible
Be aware that reinstatement is more likely if the employment ended on reasonably good terms, or if you’re running a larger business with many available positions. Tribunals are less likely to order it where there’s been a complete breakdown of trust, or business circumstances have genuinely changed.2. Review Your Policies and Contracts
It’s crucial to have clearly drafted Employment Contracts and staff handbooks outlining terms, dismissal processes, and employee rights. Being upfront and transparent in your contracts will help reduce the risk and confusion should a reinstatement order ever be made. You may also want to review your grievance and disciplinary procedures to ensure they’re fair and legally compliant-see our resources on Workplace Policy & Staff Handbooks.3. Take Legal Advice Before Dismissal
Prevention is better than cure-so always review a proposed dismissal with legal counsel, especially for long-standing or “at risk” employees. If a case proceeds to tribunal and reinstatement is sought, you'll want to be confident your original process was robust and you’re ready for every possible outcome. If in any doubt, have an expert review before taking irreversible steps.4. If Ordered, Respond Quickly and Professionally
If you do receive a reinstatement order, acknowledge it promptly, communicate clearly with the returning employee, and seek input from a lawyer to manage the handover process. Make sure all admin (payroll, IT access, benefits, insurance) is coordinated to avoid delays or accidental non-compliance.5. Foster a Positive Post-Reinstatement Environment
It’s natural to have mixed feelings about a returning employee after a legal dispute, but make sure managers and teams follow your policies on equality and fair treatment. This isn’t just about “ticking boxes”-unfair or hostile conduct after reinstatement can open the door to more tribunal claims, so approach this as a business risk as well as an HR one. For wider strategies on managing employment disputes, from prevention to resolution, read our essentials on Performance Management and Employee Termination.What If Reinstatement Is Not Practical?
There are instances where reinstatement genuinely is not possible-for example, if the job no longer exists or relationships have irretrievably broken down. In these cases, the tribunal will usually order financial compensation (“compensatory” and “basic” awards). If you believe reinstatement is not feasible, you will need to present clear evidence to the tribunal as early as possible. Legal advice is a must here-both to document your reasons and to limit further liability. For more on recommended approaches regarding terminations, see our advice on Terminating a Contract.Key Legal Documents and Policies to Protect Your Business
Having robust policies and contracts in place can reduce the chances of ending up in a reinstatement dispute-or, if you do, help you comply and protect your business. Consider:- Employment Contracts (customised to your business and up to date with current law)
- Grievance and disciplinary procedures, with clear steps for both employer and employee
- Employee Handbooks to set standards and expectations in the workplace
- Proper records of appraisals, performance reviews, warnings, and dismissal process
- Policies on equal treatment and anti-discrimination, to manage relationships post-reinstatement
Frequently Asked Questions About Reinstatement Orders
Can I Refuse To Rehire After a Reinstatement Order?
In almost all cases, refusal is a legal breach unless you can prove it’s truly not practical (for example, the company has undergone restructuring, or the work no longer exists). Never ignore an order-seek legal help to communicate your situation to the tribunal.What Happens to Back Pay or Benefits?
You will need to pay any wages, holiday pay, pension contributions and other entitlements that would have accrued had the employee remained in your employment throughout.Can I Reassign the Employee to a Different Role?
Only if the tribunal orders “re-engagement” instead of reinstatement, or if the original job genuinely cannot be restored. This must be handled sensibly and with tribunal approval. Any attempt to “side-line” the employee without cause can be challenged as further victimisation.What If Colleagues Object to the Employee’s Return?
Your duty as an employer is not to allow personal feelings to influence or worsen the employment relationship. It’s your responsibility to provide a supportive and fair work environment for all staff-including those returning after tribunal cases.Key Takeaways
- An employee reinstatement order is a legal requirement-if a tribunal issues one, you must fully restore the employee to their position, pay, and benefits as if they had never been dismissed.
- Refusing to comply (or failing to treat the employee fairly on their return) exposes your business to further claims, heavy compensation awards, and reputational damage.
- Preparation is key: robust contracts, fair policies, and legal advice before dismissal will reduce your risk of tribunal claims and make compliance simpler should reinstatement be ordered.
- Should you receive a reinstatement order, act promptly, communicate openly, and seek legal advice to avoid accidental non-compliance and ensure a smooth transition for the returning employee.
- Always treat reinstated staff with inclusion and fairness-showing no retaliation or discrimination due to tribunal proceedings-to prevent further legal troubles.
- If reinstatement is not practical, present clear evidence early and seek to negotiate a mutually acceptable solution with the support of employment law experts.
