In May 2006, Disability Action Yorkshire suspended Judith Oliver for what the charity said was setting an inappropriate budget. She was dismissed six months later.
In December, an employment tribunal that took place in Manchester issued an order requiring the charity to concede that the dismissal had been unfair.
A hearing to set damages is scheduled for 4 February. Oliver is asking for £58,400 - the maximum amount that is allowed under unfair dismissal rules.
"Nothing can make good the terrible 18 months that I've had with this hanging over me and the knowledge that people would undoubtedly be thinking that there's no smoke without fire," said Oliver, speaking after the original hearing.
A statement from the charity's board said it was unable to comment on the case. However, it added that the case had not compromised the wellbeing of its beneficiaries.