Unfair Dismissal Compensation Calculator 2026

2025/26: Basic Award maximum £21,066 (30 weeks × £719 weekly pay cap). Compensatory Award maximum £115,115 (or 52 weeks' actual pay if lower). Total maximum: £136,181. Uncapped for discrimination claims or whistleblowing.

£719/week for claims presented on or after 6 April 2025. This cap applies to the basic award and statutory redundancy pay calculations. The compensatory award uses actual weekly earnings (uncapped for the compensatory element itself, capped at £115,115 total).

Yes — you need 2 years' continuous employment for ordinary unfair dismissal. No qualifying period applies for: automatically unfair dismissal (trade union activity, pregnancy, whistleblowing, health and safety), discrimination claims (Equality Act 2010).

The basic award is calculated like statutory redundancy pay: 0.5 week per year of service under 22, 1 week for ages 22-40, 1.5 weeks for 41+. Capped at 20 years' service and £719/week.

The compensatory award compensates for actual financial loss — lost earnings, pension loss, expenses incurred finding new work. The tribunal expects you to mitigate losses (take reasonable steps to find new work). Award is capped at £115,115 or 52 weeks' pay (whichever is lower).

A 'Polkey reduction' reduces the compensatory award if the tribunal thinks the employer could have dismissed fairly anyway — even with the unfair procedure. If there was a 70% chance of fair dismissal, the award may be reduced by 70%.

If the employer failed to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures, the tribunal can increase the award by up to 25%. Similarly, if the employee unreasonably failed to follow the Code, the award can be reduced by up to 25%.

The first £30,000 of termination payments (including basic award) is tax-free. Compensatory awards are generally taxed as employment income. The injury to feelings element (if any) is not taxable.