Galliano was sacked by the company in 2011 after he was caught on camera making anti-Semitic remarks in a Paris cafe.
The designer was convicted of racial abuse by a French court and fined 6,000 euros.
But now Galliano's lawyer, Chantal Giraud-van Gaver, is claiming he should not have been dismissed because he was suffering from multiple addictions to prescription drugs and alcohol.
In France, that is considered an illness and insufficient reason for sacking.
Galliano, 52, was working in one of fashion's top jobs at the time of his sacking - Christian Dior's artistic director - and was revered by many in the industry.
However, his career was abruptly halted after being convicted of two incidents that took place at Paris' Cafe La Perle cocktail bar.
The Gibraltar-born designer was found guilty of subjecting two women to a series of expletive-laced racist and anti-Jewish remarks.
At the time, Galliano said he had no recollection of the events, denied being racist or anti-Semitic, and blamed his addictions on the stresses of his job.
Monday's initial hearing in Paris concerned the jurisdiction of the court and whether the industrial tribunal had the power to decide the dispute.
French fashion house Dior argued that it did not, but the court sided with Galliano's lawyer and decided it could look at the case in more detail.
Dior now has 15 days to accept that ruling or make an appeal to a higher court.
The substance of the dispute will not be heard before October or November, said Galliano's lawyer.
Galliano recently returned to fashion with a temporary role at the studio of Oscar de la Renta, helping the designer prepare for New York fashion week.
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