Your job back or a payment?
The two main outcomes of a successful claim, and what decides between them.
Reinstatement and compensation in lieu of reinstatement are the two main directions an unfair dismissal award can take. It helps to know both before your case is decided.
What it means
Reinstatement puts you back in your old job, as though the dismissal had not happened. Compensation in lieu is a payment instead, used when going back is no longer realistic for either side.
Neither outcome follows automatically from filing a claim. Both depend on the Industrial Court’s view of your facts once the case is fully heard.
Why it matters to you
The two outcomes suit different situations. Reinstatement fits someone who still wants the job, where trust has not fully broken down.
Compensation fits a relationship that has clearly ended. Which one applies is decided on the facts, not on what either side prefers.
Either way, back wages for the time you were out of work are calculated separately. They are capped at 24 months for a confirmed employee and 12 months for a probationer.1
Which outcome should you prepare for
Ask yourself honestly whether you would return if offered the chance. That answer shapes how you present your case and what you ask for at each stage.
A long gap since your dismissal, a restructured role or a badly damaged relationship all push a case toward compensation in lieu of reinstatement rather than reinstatement.
If you have not yet filed, none of this matters until your claim is in, so check your deadline on the deadline calculator first.
If you are weighing reinstatement against compensation as part of a claim, an independent lawyer can review what happened. They can handle the claim if it is worth pursuing.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Do I get to choose which one I receive?
You can state a preference, and the court will hear it. The final choice rests with the Industrial Court, based on what it finds practical given the facts of your case.
Does one option usually pay more than the other?
There is no fixed rule either way. The value depends on your length of service, your salary and how long your case took to be heard, so be careful comparing the two.
Sources
- Back wages awarded by the Industrial Court are assessed from the date of dismissal to the last day of hearing, capped at 24 months for a confirmed employee and 12 months for a probationer under the Second Schedule of the Industrial Relations Act 1967. DNH, Monetary Remedies at the Industrial Court
Keep reading
If you are weighing reinstatement against compensation as part of a claim, an independent lawyer can review what happened. They can handle the claim if it is worth pursuing.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.