Employment Tribunal Compensation Calculator
Estimate basic award, compensatory award and Acas uplift for unfair dismissal, discrimination and whistleblowing claims
Last updated: March 2026 | Weekly pay cap £643, compensatory cap £105,707
Employment Tribunal Compensation Calculator 2026
Calculate basic award (statutory redundancy formula), compensatory award and Acas Code uplift
Key Employment Tribunal Limits 2025/26
| Limit / Parameter | 2025/26 Amount |
|---|---|
| Weekly pay cap (basic award & redundancy) | £643 |
| Maximum basic award (20 years × 1.5 × £643) | £19,290 |
| Compensatory award cap (unfair dismissal) | £105,707 |
| Compensatory award cap (whistleblowing/discrimination) | Uncapped |
| Acas Code uplift (maximum) | +25% |
| Time limit to file ET1 | 3 months minus 1 day |
| Minimum basic award (whistleblowing/HS dismissal) | £7,836 |
Complete Guide to Employment Tribunal Claims UK 2026
1. The 3-Month Minus 1 Day Rule: Act Without Delay
The time limit for bringing most employment tribunal claims is 3 months minus 1 day from the act complained of. For unfair dismissal, this runs from the Effective Date of Termination (EDT) — which is the last day of employment, including any notice period actually worked, or the date of summary dismissal. For discrimination claims, it runs from the last act of discrimination (which may be continuous conduct).
Time limits in employment law are strict. Unlike civil courts, employment tribunals have very little discretion to allow late claims. For unfair dismissal, you must show it was "not reasonably practicable" to bring the claim in time — a high bar. For discrimination, the tribunal asks whether it is "just and equitable" to extend time — a slightly lower bar but still rarely satisfied without compelling reasons such as serious illness.
Before you can file an ET1 claim form, you must contact Acas for Early Conciliation (EC). Starting EC pauses the time limit for the duration of the conciliation period (up to 6 weeks). When EC ends (whether successful or not), Acas issues an EC certificate number which you must include on your ET1. You then have a further period to file: the later of (a) one month from the day after EC started, or (b) the original deadline plus the EC period. Register with Acas as early as possible to maximise your time.
2. Basic Award: How the Statutory Formula Works
The basic award for unfair dismissal is calculated using the same statutory formula as redundancy pay. It is based on three variables: (1) your age at the date of dismissal; (2) your complete years of continuous employment (capped at 20); and (3) your gross weekly pay (capped at £643 for 2025/26).
The multiplier per complete year of service is: 0.5 week's pay for service while aged under 22; 1 week's pay for service while aged 22–40; 1.5 weeks' pay for service while aged 41 or over. Work backwards from the dismissal date: for each year of service, identify what age you were for the majority of that year and apply the appropriate multiplier.
The maximum basic award in 2025/26 is therefore 20 × 1.5 × £643 = £19,290. The basic award can be reduced if the claimant refused an offer of reinstatement without good reason, or if the claimant's conduct before dismissal contributed to the dismissal (the same conduct-based reduction that applies to the compensatory award). The basic award is always subject to the weekly pay cap regardless of your actual salary.
3. Compensatory Award: Past and Future Loss of Earnings
The compensatory award is designed to put you in the financial position you would have been in had you not been dismissed. It covers: (1) Immediate loss — loss of earnings from dismissal to the tribunal hearing date; (2) Future loss — projected loss of earnings after the hearing date until you are likely to find equivalent employment; (3) Loss of statutory rights (typically a nominal £350–£1,000 for the loss of unfair dismissal protection at the new employer); (4) Loss of pension rights; and (5) Any other financial loss directly caused by the dismissal.
For unfair dismissal, the compensatory award is capped at the lower of £105,707 or 52 weeks' gross pay. So for a claimant earning £80,000/year (£1,538/week), the cap is 52 × £1,538 = £79,961 — lower than the £105,707 ceiling. For discrimination and whistleblowing claims, there is no cap on the compensatory award — a key distinction that significantly affects the value of these claims for higher earners.
You have a duty to mitigate your loss — to take reasonable steps to find new employment. If you fail to mitigate (e.g. by refusing suitable job offers or not actively searching), the tribunal will reduce the compensatory award to reflect what you could have earned had you mitigated properly. A careful and well-documented job search diary is valuable evidence of mitigation.
4. Polkey Reduction: When Your Employer Could Have Dismissed Fairly
The Polkey deduction (from Polkey v AE Dayton Services Ltd [1987]) allows the tribunal to reduce your compensatory award to reflect the chance that the employer could have dismissed you fairly, even if they did not follow a fair procedure. In other words: if the employer used a flawed procedure (e.g. no investigation, no hearing) but the substantive reason was valid, the tribunal assesses the percentage chance that a fair dismissal procedure would have led to the same outcome — dismissal — and reduces the award accordingly.
For example: if your employer dismissed you for redundancy without consultation but the tribunal finds there was a genuine redundancy situation with a 70% chance you would have been selected anyway, the compensatory award is reduced by 70% (the Polkey percentage). This can dramatically reduce an apparently strong case. However, Polkey works both ways — if a fair procedure would have taken an additional 3 months, you may receive at least 3 months' additional compensation.
The Polkey percentage is assessed separately from contributory fault. Both can apply simultaneously. If the tribunal reduces the award by 30% for Polkey and 20% for contributory fault, the combined reduction is applied multiplicatively — not additively. The order of deductions matters: the compensatory award is calculated before Polkey and contributory reductions are applied, and Acas uplift is applied after the reductions.
5. Discrimination: Injury to Feelings and Uncapped Awards
Claims for discrimination under the Equality Act 2010 (on grounds of race, sex, disability, age, religion, sexual orientation, gender reassignment, pregnancy and maternity) are not subject to the £105,707 compensatory cap. They can also include additional heads of loss not available in pure unfair dismissal cases:
Injury to feelings (Vento bands 2023): Compensation for the non-financial harm caused by discrimination: Lower band (less serious isolated incidents): £1,100–£11,200. Middle band (serious cases not meriting the top band): £11,201–£33,700. Upper band (most serious, e.g. lengthy campaigns of harassment, loss of career): £33,701–£56,200. Exceptionally serious cases may exceed the upper band. The tribunal has wide discretion in assessing injury to feelings.
Aggravated damages: Available where the discriminator's conduct was high-handed, malicious or oppressive. Typically £5,000–£25,000 on top of the substantive award. Personal injury: If the discrimination caused clinical psychiatric illness (proven by medical evidence), personal injury damages may be awarded. Interest: Interest at 8% per annum runs on compensation for injury to feelings from the date of the act of discrimination, and on financial losses from the midpoint between dismissal and judgment.
6. Schedule of Loss: The Critical Document
A Schedule of Loss is a document setting out precisely what compensation you are claiming and how it is calculated. In most employment tribunal cases it is essential — the tribunal will expect to see it and it forms the basis of settlement negotiations. Without a clear Schedule of Loss, you risk undervaluing your claim or failing to claim heads of loss you are entitled to.
A typical Schedule of Loss includes: (1) Basic award calculation (age × service × capped weekly pay); (2) Past loss of earnings (from dismissal date to schedule preparation date); (3) Future loss of earnings (from schedule date to estimated re-employment); (4) Loss of statutory rights (nominal sum); (5) Loss of pension contributions (employer contributions foregone); (6) Injury to feelings (if discrimination claim, with Vento band); (7) Any personal injury element; (8) Interest calculations on each head.
The Schedule of Loss should be updated to the hearing date. Most practitioners provide an updated version on the morning of the hearing. Acas uses the Schedule of Loss as the primary negotiating document in settlement discussions. Instructing a solicitor or employment law specialist to prepare the schedule is advisable — errors or omissions can significantly undermine the case.
7. Settlement Statistics and the Value of Early Resolution
According to ACAS and Ministry of Justice statistics, approximately two-thirds of employment tribunal claims settle before the hearing — the majority through Acas Early Conciliation. Of those that proceed to a full hearing, claimants succeed in approximately 55–65% of unfair dismissal cases and 25–35% of discrimination cases (the latter being more fact-sensitive and harder to prove).
Settlement amounts are typically 40–70% of the theoretical maximum award, reflecting the inherent litigation risk, the cost of proceeding to a hearing (in time and stress, even without legal costs), and the enforceability risk. A settlement at 50% of the Schedule of Loss value that concludes within 3 months is often preferable to a tribunal award at 80% of claim value obtained 12 months later — particularly for those under financial pressure.
Settlements are typically documented in a COT3 agreement (Acas-brokered) or a Settlement Agreement (formerly a compromise agreement). Settlement Agreements must be signed by the employee and a relevant independent advisor (usually a solicitor) — the employer typically pays the advisor's fees (£200–£500) as part of the settlement. Always seek independent legal advice before signing a Settlement Agreement.
8. Interim Relief: Protecting Your Pay During Whistleblowing Claims
Interim relief is an emergency remedy available in whistleblowing cases (and certain union/health and safety dismissal cases) that allows you to receive your salary pending the outcome of the full tribunal hearing. It is one of the most powerful remedies in employment law — but it must be applied for within 7 days of the Effective Date of Termination.
At the interim relief hearing (usually listed within 7 days of the application), the tribunal will continue your employment or order reinstatement if it is "likely" that you would succeed at a full hearing. The standard is lower than the balance of probabilities — approximately 50%+ chance of success. If interim relief is granted, your employer must continue paying your salary and maintain your contract until the final hearing, which may be 12–24 months later. The financial value of this can be enormous.
Interim relief is not available for ordinary unfair dismissal or discrimination claims — only for the specific protected categories. Given the 7-day window, anyone dismissed in circumstances they believe involve whistleblowing must seek legal advice immediately. Missing the deadline is fatal to the application. Trade union members should also contact their union immediately — union legal departments frequently handle interim relief applications at no cost to the member.
Worked Examples: Employment Tribunal Awards 2026
Example 1: Unfair Dismissal — 5 Years Service, Age 35, £550/week
- Basic award: 5 years × 1 week × £550 (under cap) = £2,750
- Past loss (4 months × £550 × 4.33): £9,526
- Future loss (4 months): £9,526
- Loss of statutory rights: £500
- Gross compensatory award: £19,552 — within £105,707 cap
- Acas 25% uplift: £19,552 × 25% = £4,888
- Total compensatory award: £24,440
- Total award: £2,750 + £24,440 = £27,190
Example 2: Discrimination — 3 Years Service, Age 42, £700/week (uncapped)
- Weekly pay for basic award: capped at £643
- Basic award: 3 years × 1.5 (age 41+) × £643 = £2,894
- Past loss (6 months at £700/week × 26): £18,200
- Future loss (9 months): £27,300
- Injury to feelings (middle Vento band): £20,000
- Interest on injury to feelings (8% × 1.5 years): £2,400
- Total: £70,794 (uncapped for discrimination)
Example 3: Unfair Dismissal — 20 Years Service, Age 55, £800/week (above cap)
- Weekly pay for basic award: capped at £643
- Basic award: 20 years × 1.5 (age 41+) × £643 = £19,290 (maximum)
- Actual weekly loss at £800/week × 52 weeks cap: compensatory cap = 52 × £800 = £41,600 (lower than £105,707)
- Past loss (8 months): £27,733 | Future loss (4 months): £13,867
- Compensatory award: £41,600 (capped at 52 weeks' pay)
- Total award: £19,290 + £41,600 = £60,890
Sources & Methodology
- GOV.UK — Employment Tribunals
- Acas Code of Practice — Disciplinary and Grievance Procedures
- HMRC — Redundancy Pay Calculator (basic award formula)
Disclaimer: This calculator provides indicative estimates only. Actual tribunal awards depend on the specific facts, tribunal assessment, Polkey reductions, contributory fault, duty to mitigate and other factors. Limits are updated each April. Always consult a qualified employment solicitor or union representative before commencing tribunal proceedings.