The style guru was convicted of racial abuse and fined following allegations he hurled an anti-Semitic tirade at a couple during a night out in Paris, France in February, 2011.
The controversy cost him his job as head designer at Christian Dior, as well as his role at the helm of his eponymous label, which is majority-owned by Dior.
He appeared before an employment hearing in Paris, France on Monday (04Feb13), where his lawyers claimed he should not have been dismissed as he was struggling with addictions to prescription pills and alcohol.
The initial hearing was deemed a victory by Galliano's lawyers after court officials decided to look into the case in more detail instead of sending it to a higher court, which lawyers for the fashion house had wanted.
Galliano's lawyer Chantal Giraud-van Gaver says, ""I am satisfied because Dior's request has been rejected, and our arguments have been upheld.""
Bosses at Dior have been granted 15 days to accept the ruling or appeal.