Unfair Dismissal Compensation Calculator

Estimate your basic award and compensatory award for unfair dismissal — and see the difference the compensation cap's removal makes from 1 January 2027.

This is an estimate for guidance only, not a legal or binding calculation. Tribunal awards depend heavily on your individual circumstances, mitigation of loss, and any contributory fault. Confirm your position with ACAS or a qualified employment solicitor.

Estimated total compensation

£0

ElementAmount
Basic award£0
Compensatory award£0
Law change: compensation cap removed from 1 January 2027 From 6 April 2026, the compensatory award for unfair dismissal is capped at the lower of £123,543 or 52 weeks' gross pay. The Employment Rights Act 2025 abolishes this cap entirely from 1 January 2027, alongside cutting the qualifying period for unfair dismissal protection from 2 years to 6 months. From that date, compensation reflects actual financial loss with no upper limit.

How the basic award works

The basic award uses the same formula as statutory redundancy pay: a multiplier based on your age during each year of service, applied to your weekly pay (capped at £751 as of 6 April 2026), up to a maximum of 20 years' service.

Age during that year of serviceWeeks' pay per year
Under 220.5 week's pay
22 to 401 week's pay
41 and over1.5 week's pay

How the compensatory award works

The compensatory award is meant to reflect your actual financial loss — typically lost earnings from the date of dismissal until you find (or reasonably should have found) comparable work, plus items like lost pension contributions or benefits. This calculator approximates that loss as your weekly pay multiplied by the weeks you estimate it will take to find new work; a tribunal would assess your specific losses in detail, and reduce the award for any failure to mitigate your loss by looking for new work reasonably promptly.

Before 1 January 2027, this figure is capped at whichever is lower: £123,543 or 52 weeks' gross pay. From 1 January 2027, the Employment Rights Act 2025 removes both limits.

Frequently asked questions

What is the maximum unfair dismissal compensation in the UK?

For dismissals before 1 January 2027, the compensatory award is capped at the lower of £123,543 or 52 weeks' gross pay (from 6 April 2026), on top of a separate basic award. From 1 January 2027, the Employment Rights Act 2025 removes this cap entirely.

Is the unfair dismissal compensation cap being removed?

Yes. The Employment Rights Act 2025 abolishes the compensatory award cap from 1 January 2027, alongside reducing the qualifying period for unfair dismissal protection from 2 years to 6 months, on the same date.

What is the difference between the basic award and compensatory award?

The basic award is a fixed formula based on age, service and weekly pay — identical to the statutory redundancy pay calculation. The compensatory award separately reflects your actual financial loss, capped differently as explained above.

Also see our Statutory Redundancy Pay Calculator — the basic award uses the same formula.