Is It a Good Idea to Offer Reinstatement to a Terminated Employee?

In certain cases where an employer has terminated an employee improperly and now faces the threat of legal action, the employer may consider offering to reinstate the employee in order to limit the company’s exposure to damages. An Orange County business attorney can advise you as to whether this is a good idea in your case.

Orange County business attorney


Under federal employment law, an offer of reinstatement precludes the employee from accumulating further back-day damages, regardless of whether the plaintiff accepts the offer, as long as the plaintiff’s refusal is unreasonable.


The employer must make the offer unconditionally and in good faith; he or she must present a realistic option to the plaintiff for it to be a valid offer. The employer must also offer a position that is substantially equivalent to the former position.


It may be worth considering an offer of reinstatement if, after further investigation of the instigating matter, the company finds no evidence that the employee is unqualified for the position or has committed any affirmative misconduct warranting the termination. However, as your Orange County business attorney should advise you, all circumstances should be considered when discussing the option of reinstatement.


Officially, the offer should be given in a signed letter by the appropriate company officer, on official company letterhead, so that it does not create the appearance of a defensive strategy. It should be sent to the plaintiff’s attorney. It should make clear that the position is the same or comparable to the original position before termination.


Contact Us


For more information regarding matters of false termination, contact an Orange County business attorney at the offices of Daily Aljian, LLP by calling 949-861-2524.