Orders for Reinstatement or Re-engagement
If an employee has been unfairly dismissed, the employment tribunal may decide, if it is practical and fair, to ask the employee if he wishes to be reinstated or re-engaged and if so, to order you, as the employer, to comply.
If reinstated, the employee must be treated as if he had never been dismissed.
If re-engaged, he must be offered comparable or other suitable employment on terms specified by the employment tribunal.
In order to resist an order for re-engagement or reinstatement you must show that it is not reasonably practicable for the business to comply - for example, due to a breakdown in the relationship of mutual trust and confidence between employer and employee.
In practice, few such orders are made, especially with smaller businesses.
Higher basic awards may be made against you for failure to reinstate or re-engage an employee when the employment tribunal orders it.