This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Explains how employment tribunals in England and Wales can order reinstatement, re‑engagement or compensation for unfair dismissal, including statutory powers, practical factors, interim relief, and non‑compliance consequences.
When an employee successfully brings an unfair dismissal claim before an employment tribunal in England and Wales, the tribunal has a defined range of remedies it can order. These remedies are designed to address the consequences of unlawful dismissal and may include reinstating the employee, re‑engaging them in a suitable role, or awarding compensation. Understanding these powers helps employees and employers navigate the tribunal process and anticipate potential outcomes. This article explains the statutory framework, when and how tribunals may order reinstatement or compensation, practical considerations, and common questions.
Legal Basis for Remedies
The authority for tribunals to order reinstatement, re‑engagement, or compensation in unfair dismissal cases is set out in the Employment Rights Act 1996 (ERA). Section 113 of the ERA provides that, where a complaint of unfair dismissal is upheld and the claimant wishes it, the tribunal may make an order for:
- Reinstatement: restoring the employee to their former role as if the dismissal had not occurred; or
- Re‑engagement: placing the employee in a comparable or suitable role with the same employer or an associated employer.
If the tribunal decides not to make either order, it must instead make an award of compensation for unfair dismissal.
Tribunals also have powers under section 117 ERA to award compensation if an employer fails to comply with a reinstatement or re‑engagement order.
Reinstatement: What It Means
A reinstatement order directs the employer to treat the employee in all respects as if they had never been dismissed. This includes restoring:
- Seniority and pension rights accrued before dismissal;
- Pay and benefits that would have been earned from the date of dismissal to the date of reinstatement; and
- Terms and conditions, including any improvements that would have applied during the intervening period.
A tribunal must specify any sums payable for lost benefits and the date by which the order must be complied with. When calculating amounts owed for the period between dismissal and reinstatement, the tribunal takes into account wages already received from another employer, ex gratia payments, or pay in lieu of notice to avoid double recovery.
Practical Reality
Although reinstatement is a statutory remedy, it is rare in practice. Tribunals infrequently order reinstatement because employers and employees must indicate willingness and it must be practicable to restore the employment relationship. Practical considerations can include breakdowns in trust, changes in job roles, and organisational restructuring.
Re‑engagement: An Alternative Order
If reinstatement is not suitable or feasible, a tribunal may order re‑engagement. This remedy places the employee in a comparable or suitable role, which may be a different position within the employer's business or, in exceptional circumstances, with an associated employer or successor entity.
The tribunal must specify:
- The identity of the employer for the re‑engagement;
- The nature of the employment;
- The employee's remuneration and benefits;
- Any arrears of pay or lost benefits; and
- The date by which the order must be complied with.
Like reinstatement, re‑engagement orders consider pay and benefits that the employee would reasonably have received had the dismissal not occurred. Tribunal orders for re‑engagement require clear terms to avoid ambiguity.
Compensation: Default Remedy
If reinstatement or re‑engagement is not ordered, or if such orders are impractical or inappropriate, the tribunal will order compensation for unfair dismissal. Under section 112 of the ERA, compensation includes:
- A basic award based on age, length of service and weekly pay (similar to statutory redundancy pay); and
- A compensatory award reflecting actual financial loss, such as lost earnings and benefits.
Compensatory awards are subject to statutory limits except where specific exceptions apply. Tribunals may also adjust compensation within statutory frameworks.
Additional Awards for Non‑Compliance
If an employer fails to comply fully with a reinstatement or re‑engagement order, a tribunal may award additional compensation under section 117 ERA. The amount is at the tribunal's discretion, having regard to the loss sustained due to non‑compliance.
Tribunals may also award compensation in lieu of reinstatement or re‑engagement where compliance is impossible due to employer refusal or practical barriers.
Factors Influencing Tribunal Decisions
In deciding whether to order reinstatement or re‑engagement, a tribunal will consider:
- The wishes of the claimant: the employee must express a desire for reinstatement or re‑engagement, usually at the remedy hearing or in submissions.
- Practicability: whether the employer can realistically comply with an order, including operational and relational considerations.
- The employment relationship: where trust and confidence have irretrievably broken down, courts may find that reinstatement or re‑engagement is not viable.
Orders for reinstatement or re‑engagement are exceptions rather than routine remedies; compensation remains the predominant outcome in unfair dismissal cases.
Interim Relief
In certain automatically unfair dismissal cases, an employee may apply for interim relief, which can temporarily reinstate or re‑engage the claimant or order continued pay until the full tribunal hearing. Interim relief is designed to prevent hardship and can bridge the period before the tribunal determines the final remedy. It applies only in specific statutory circumstances and is distinct from final reinstatement or compensation orders.
Practical Considerations for Claimants
- Express remedies clearly: claimants should indicate whether they seek reinstatement, re‑engagement or compensation at the remedy stage.
- Think about relationship dynamics: reinstatement or re‑engagement is unlikely where the employment relationship has broken down.
- Understand that compensation is the norm: tribunals make financial awards far more frequently than orders restoring employment.
- Non‑compliance can increase costs for employers: failure to comply with reinstatement orders can lead to additional awards.
Common Questions
Can a tribunal force an employer to take an employee back?
Tribunals can order reinstatement or re‑engagement, but such orders are rare and must be practicable. Compensation is the more common remedy.
Is compensation always capped?
Compensation for unfair dismissal is generally capped by statutory limits for the compensatory award, but pay for periods between dismissal and reinstatement or re‑engagement is not subject to the usual cap.
What happens if the employer refuses to comply with a reinstatement order?
The tribunal can award compensation for non‑compliance, including additional awards under section 117 ERA.
Key Takeaways
Employment tribunals in England and Wales have clear statutory powers to address unfair dismissal through reinstatement, re‑engagement or compensation. While tribunals can order employers to reinstate or re‑engage employees, these remedies are rare and depend on practical factors, the wishes of the claimant, and the feasibility of restoring the employment relationship. Where reinstatement or re‑engagement is not appropriate, tribunals award compensation to reflect financial losses. Understanding how these remedies work and the conditions that influence tribunal decisions helps employees and employers prepare for and respond to unfair dismissal claims.
