Consequences of terminating someone and then rescinding the termination?

My company terminated two employees and then decided that losing them would be a loss to the company, so the company then rescinded the terminations, telling the employees that there had been a miscommunication and that the company had simply been considering some person el changes but didn’t mean to make it official.

Have you ever seen a company rescind a termination of an employee? If so, how did it work out: did the employee stick around and perform at least at the same level as before?