Professor Richard Rideout, chairman of the tribunal and a legal expert, made it clear that Mr Dell could have been refused a job because of his membership of the BNP.
However the council sacked the BNP branch organiser and activist because his overt racism was incompatible with his job as caretaker on a council estate, which involve contact with persons of racial minorities.
Council representatives told the tribunal that they did not refuse to employ people because of particular political affiliations. But the tribunal held that such a policy did not justify dismissing Mr Dell for participation in a BNP demonstration, the paper reports.
It is understood that the council may refuse to comply with the tribunals orders to reinstate Mr Dell within three months at the same grade and salary in a job which 'will not bring him into any sort of contact, direct or indirect, with racial minorities', The Independent reports.