a). Re-instatement in labour law is the order directing an employer who has been found to have unfairly dismissed an employee to restore him to his former job. The employee is to be treated as if he had not been dismissed and therefore is entitled to recover any benefits such as arrears of pay that he has lost during his period of un-employment. In re-instatement the employee is entitled to be restored to his former job and to recover any benefits he might have got it as if he was not dismissed i.e. he is treated as if he had not been dismissed.
b). Re-engagement in labour law is the order directing an employer who has been found to have unfairly dismissed an employee to provide him with comparable or other suitable employment in a post equivalent/different from that, which he was dismissed. In re-engagement, the employee is only entitled to be provided with comparable or other suitable job.
Note: In both situations, the employer is not bound to comply with the order, so if he fails to do so, he will be ordered to award compensation on the usual principles together with an additional sum. In re-instatement, the employee is restored to his former job, whereas; in re-engagement, the employee is provided with comparable or other suitable post job by employer.
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