The National Workers Union's Ephraim Kalsakau, who is also the member for Port Vila, said Basil Leodoro's absence has placed notable stress on the quality of medical care on Maewo and the north.
The surgeon was stood down in October after questioning the government's use of aid funding meant for evacuees from September's volcanic eruption on Ambae.
Mr Kalsakau said he was pleased for the people of Vanuatu.
"Yes well we're glad that the Public Service Commission and the government of Vanuatu has decided to reinstate Dr Basil because during his suspension our northern hospital was without a surgeon, so as far as I'm concerned, I'm glad that he has been reinstated so that he can get back to serving our people up in the north."
The Public Service Commission announced Dr Leodoro's reinstatement Friday but is also alleging he misappropriated public funds.
The Commission's secretary Jacques Gedeon is accusing him of gross misconduct.
Photo file Port Vila