Unfair Dismissal Compensation Estimator UK 2026/27
Estimate the Basic Award and Compensatory Award you could claim at Employment Tribunal. Updated for 2026/27 figures and the changes for dismissals from 1 January 2027.
Compensation for a successful unfair dismissal claim is made up of two separate elements:
- Basic Award — calculated using the same formula as statutory redundancy pay, based on your age, length of service (capped at 20 years), and a week's pay (capped at £751 for 2026/27).
- Compensatory Award — covers your actual financial losses, such as lost earnings and benefits. For dismissals before 1 January 2027 it is capped at the lower of £123,543 or 52 weeks' gross pay. For dismissals on or after 1 January 2027 there is no cap.
The rules change on 1 January 2027. Under the Employment Rights Act 2025, for dismissals on or after that date the qualifying period falls from 2 years' continuous service to 6 months, and the cap on the Compensatory Award is removed. Enter the date of dismissal and the calculator applies the right rules. This tool gives an estimate only — every tribunal case is decided on its own facts.
Basic Award
Based on age, length of service, and gross weekly pay — same formula as statutory redundancy pay.
The last day of employment. Different rules apply to dismissals on or after 1 January 2027.
Must generally be 2+ years to claim
Before tax. Capped at £751/week for the Basic Award, even if you earn more.
Compensatory Award
Covers your actual financial losses from the dismissal.
Used to calculate lost earnings — this is different from the gross figure above.
Time out of work, or expected until finding comparable work
e.g. pension contributions, company car — optional
A customary nominal sum — commonly around £500
Offsets against the Basic Award first, then any excess against the Compensatory Award
If a tribunal finds you partly contributed to the dismissal
Employer failed to follow the Code of Practice
Applies a 25% uplift to the Compensatory Award, as tribunals can award up to 25% for unreasonable failure to follow the statutory Code of Practice on Disciplinary and Grievance Procedures.
How unfair dismissal compensation works
Two parts to the award
- The basic award uses the same formula as statutory redundancy pay: half, one or one and a half weeks' pay for each complete year of service depending on age, with a week's pay capped at £751 and no more than 20 years counted
- The compensatory award covers what the employee has actually lost because of the dismissal, such as lost earnings until they find a new job, lost pension and other benefits, and a sum for the loss of their employment rights
What changes on 1st January 2027
For dismissals that take effect before 1st January 2027, the compensatory award is capped at £123,543 or 52 weeks' gross pay, whichever is lower, and an employee usually needs 2 years' service to claim. The cap does not apply to some automatically unfair dismissals, such as dismissal for whistleblowing or for certain health and safety reasons.
For dismissals that take effect on or after 1st January 2027, the cap on the compensatory award is removed, and the qualifying period for ordinary unfair dismissal falls to 6 months. What counts is the date the employment ends, not the date the decision was made.
How to use the estimator
- Enter the date of dismissal, the employee's age and their complete years of service
- Enter their gross and take-home weekly pay
- Enter how many weeks of lost earnings to claim, and any lost benefits each week
- Add any redundancy payment already made, and any reduction for the employee's own conduct
The result is an estimate for ordinary unfair dismissal. The real figure depends on the facts and on the adjustments below, and different rules apply to dismissals for whistleblowing or certain health and safety reasons, where there is no cap.
What can change the award
- Failing to follow the Acas Code of Practice on disciplinary and grievance procedures: where the Code applies (for example, dismissals for misconduct or poor performance, but not redundancy), a tribunal can increase the compensatory award by up to 25% if the employer unreasonably failed to follow it, or reduce it if the employee did
- The employee's own conduct: the award can be reduced if they contributed to their dismissal
- A fair process would have led to dismissal anyway: the compensatory award can be reduced to reflect that chance
- Not looking for work: the employee must take reasonable steps to find another job, and the award can be reduced if they did not
Frequently asked questions
What is the difference between the basic award and the compensatory award?
The basic award is a fixed formula based on age, service and capped weekly pay, the same as statutory redundancy pay. The compensatory award reflects the employee's actual financial losses, such as lost earnings while they look for new work.
Is there a maximum amount of unfair dismissal compensation?
For dismissals before 1st January 2027, the compensatory award is capped at the lower of £123,543 (2026/27) and 52 weeks' gross pay. For dismissals on or after 1st January 2027, the Employment Rights Act 2025 removes the cap. Even before then, there is no cap for dismissals for whistleblowing or certain health and safety reasons. The basic award is limited by the week's pay cap of £751 and the 20-year service limit.
How long does someone need to work somewhere to claim unfair dismissal?
For dismissals that take effect before 1st January 2027, usually 2 years' continuous service. For dismissals on or after 1st January 2027, 6 months. Some dismissals are automatically unfair and need no qualifying service, such as dismissal for whistleblowing, for pregnancy or for asserting a statutory right.
What is the Acas Code uplift?
Where the Acas Code of Practice on disciplinary and grievance procedures applies, such as a dismissal for misconduct or poor performance, a tribunal can increase the compensatory award by up to 25% if the employer unreasonably failed to follow it. If the employee unreasonably failed to follow it, the award can be reduced by up to 25%. The Code does not apply to redundancy dismissals.
What counts as contributory conduct?
If a tribunal finds the employee's own blameworthy conduct contributed to their dismissal, it can reduce the basic and compensatory awards by whatever percentage it thinks fair, sometimes as much as 100%.
Does redundancy pay reduce unfair dismissal compensation?
Yes. A statutory redundancy payment already received is set against the basic award first. Any excess reduces the compensatory award, so the employee is not paid twice for the same loss.
Does the employee have to look for another job?
Yes. A dismissed employee must take reasonable steps to reduce their loss, usually by looking for suitable work. If they do not, the tribunal can reduce the compensatory award.
How many weeks of lost earnings should I enter?
There is no fixed rule. A tribunal looks at how long it should reasonably take the employee to find comparable work, taking account of their age, skills, the sector and the local job market. That is why the estimator asks for your own figure: try a few to see the range.
Is there an award for injury to feelings?
Not for unfair dismissal itself. The compensatory award covers financial loss. Injury to feelings can be awarded in discrimination claims, which are separate and have no cap.
Is unfair dismissal compensation taxable?
Compensation for losing a job is usually treated as a termination payment, so the first £30,000 is normally tax-free. Any part that is pay already owed, such as notice pay, wages or holiday pay, is taxed as normal earnings.
Get UK employment law change alerts
A short email when the law changes and what employers need to do. One or two a month. Free.