When we make a decision, we need to be firm in its execution as well. Dismissal is not something equivalent to an increase in fuel prices, where the government often ends up rolling back prices, albeit partially. If you roll back your decision, then in what way are you different from weak-kneed politicians?
Secondly, you have given a show-cause notice. You have given a chance to that person to explain their position. This was not an on-the-spot dismissal. I feel that this person tried their employment somewhere else. When things did not work out there, now they have come crying to you.
If you take a tough stand, it will send a message to everyone that you do not tolerate nonsense. However, if you revoke your decision, then it may set a bad trend, and revoking the decision may be construed as being driven by heart rather than head.
Therefore, think of the pros and cons before you make a decision.
Dinesh V Divekar