Constructive Dismissal Compensation Calculator UK 2026
Calculate your potential constructive dismissal compensation for 2026 using official UK Employment Tribunal rates. This calculator estimates both your basic award (similar to redundancy pay) and compensatory award (covering financial losses) to give you an accurate picture of what you could be entitled to claim if you've been forced to resign.
Constructive dismissal happens when your employer's conduct is so serious that you have no choice but to resign — such as harassment, discrimination, fundamental contract breaches, or creating an impossible working environment. If you've resigned for these reasons and have at least 2 years' service, you may be able to claim compensation through an Employment Tribunal.
This calculator uses 2026 statutory rates including the £700 weekly pay cap for basic awards, the £115,115 compensatory award limit, and the £21,000 maximum basic award. Enter your employment details, salary, notice period, and estimated losses to see your potential settlement range and understand what an Employment Tribunal might award in your case.
UK Constructive Dismissal Compensation 2026
- Qualifying Period: Minimum 2 years' continuous service (except discrimination claims)
- Basic Award Cap: £21,000 (30 weeks × £700 weekly cap)
- Compensatory Award Cap: £115,115 or 52 weeks' gross pay (whichever is lower)
- Weekly Pay Cap: £700 for basic award calculations
- Average Tribunal Award: £12,000–£15,000 (median settlements)
- Time Limit: Claim within 3 months less 1 day of resignation date
Calculate Your Constructive Dismissal Compensation
How Constructive Dismissal Compensation Works in the UK
Step 1: Understand What Constructive Dismissal Means
Constructive dismissal is when you're forced to resign because your employer has seriously breached your employment contract. This isn't simply being unhappy at work — it must be a fundamental breach such as sustained harassment, discrimination, significant pay cuts without consent, demotion, or creating an intolerable working environment. You must resign in response to the breach, not for unrelated reasons.
To claim constructive dismissal at an Employment Tribunal, you typically need 2 years' continuous service. However, if the breach involves discrimination (age, sex, race, disability, etc.), whistleblowing, or health and safety, you can claim from day one. Understand your notice period obligations before resigning.
Step 2: Calculate the Basic Award
The basic award is calculated exactly like statutory redundancy pay:
- 0.5 weeks' pay for each full year of service under age 22
- 1 week's pay for each full year of service aged 22–40
- 1.5 weeks' pay for each full year of service aged 41 and over
Weekly pay is capped at £700 (2026), and you can only count up to 20 years of service. The maximum basic award is £21,000 (30 weeks × £700). This award is rarely reduced unless you contributed to your own dismissal.
Step 3: Calculate the Compensatory Award (Financial Losses)
The compensatory award covers your actual financial losses resulting from the constructive dismissal. This is the larger component and includes:
- Unpaid notice pay: If you weren't paid in lieu of notice, you can claim this in full.
- Loss of earnings: Weekly pay × weeks unemployed or earning less, typically projected 6–12 months into the future.
- Pension contributions: Loss of employer and employee pension contributions during unemployment.
- Benefits lost: Company car, health insurance, bonuses, share options (valued appropriately).
- Job search costs: Recruitment agency fees, travel to interviews, retraining costs.
- Future loss of earnings: If you're now in a lower-paid role, the difference projected forward (typically 1–2 years).
The compensatory award is capped at £115,115 or 52 weeks' gross pay, whichever is lower (2026 limit). Tribunals reduce awards for failure to mitigate losses (e.g., not actively seeking work) and may apply the ACAS Code uplift of up to 25% if your employer failed to follow fair procedures.
Step 4: Add Additional Awards and Adjustments
Your total compensation may be adjusted by:
- ACAS Code uplift (up to 25%): If your employer didn't follow proper grievance or disciplinary procedures before you resigned.
- Failure to provide written reasons (2 weeks' pay): If you requested written reasons for treatment and your employer refused.
- Mitigation reduction: Tribunals will reduce awards if you didn't reasonably try to find new work or mitigate losses.
- Contributory conduct reduction: If you partly caused the situation (e.g., poor performance), awards can be reduced by 10–100%.
If your claim involves discrimination, there is no statutory cap on compensation, and you can also claim for injury to feelings (£1,200–£60,000 depending on severity). Discrimination claims do not require 2 years' service.
Step 5: File Your Claim Within 3 Months
You must start ACAS Early Conciliation within 3 months less 1 day of your resignation date (the "effective date of termination"). ACAS will attempt to settle your claim without going to tribunal. If conciliation fails, you have a further month to file your ET1 claim form with the Employment Tribunal.
Most constructive dismissal claims settle before tribunal (around 70%), typically for 40–60% of the calculated award. However, if you proceed to a full hearing, you must prove the employer's fundamental breach and that you resigned in response to it. Legal advice is strongly recommended — consider instructing a solicitor or contacting ACAS (0300 123 1100) for free guidance.
This calculator provides an estimate only based on statutory formulas and typical tribunal awards. Actual outcomes vary significantly depending on evidence, tribunal decisions, and settlement negotiations. For personalised advice, consult an employment law solicitor or visit www.acas.org.uk.
Example: £40,000 Salary, 5 Years' Service, Age 35
Scenario
Sarah, aged 35, earned £40,000 per year (£769 per week) and worked for her employer for 5 complete years. She resigned due to sustained harassment after raising a grievance that was ignored, amounting to constructive dismissal. She had a 4-week notice period but was not paid in lieu. She was unemployed for 16 weeks before finding a new job paying £36,000. She lost £2,500 in annual pension contributions and incurred £800 in job search costs.
Compensation Breakdown
- Weekly Pay (capped): £700 (actual £769, but cap applies)
- Basic Award: 5 years × 1 week (age 22–40) = 5 weeks × £700 = £3,500
- Unpaid Notice Pay: 4 weeks × £769 = £3,076
- Loss of Earnings: 16 weeks × £769 = £12,304
- Future Loss (first year): (£40,000 − £36,000) = £4,000 difference = £4,000
- Pension Loss: £2,500 × (16 weeks ÷ 52 weeks) = £769
- Job Search Costs: £800
Total Basic Award: £3,500
Total Compensatory Award: £3,076 + £12,304 + £4,000 + £769 + £800 = £20,949
Total Estimated Compensation: £3,500 + £20,949 = £24,449
Key Insights
- The basic award is modest (£3,500) because Sarah was under 41 and had only 5 years' service. Older employees with longer service receive significantly more.
- The compensatory award (£20,949) makes up 85% of the total, reflecting her actual financial losses.
- If Sarah had been out of work longer or had higher losses, the compensatory award would increase (subject to the £115,115 cap).
- If the employer had failed to follow grievance procedures, a 25% ACAS uplift could add £6,112, bringing the total to £30,561.
- Most claims settle for 40–60% of this amount (£9,800–£14,700) to avoid tribunal risk and legal costs.
Use the calculator above to model your own scenario and see how changes in service, age, salary, and unemployment duration affect your potential compensation. Compare your situation with unfair dismissal claims to understand different compensation structures.
Frequently Asked Questions
What is constructive dismissal in the UK?
Constructive dismissal occurs when an employee resigns in response to a fundamental breach of their employment contract by the employer. This means the employer's conduct was so serious that it destroyed the trust and confidence required for the employment relationship to continue. Examples include:
- Harassment or bullying that the employer fails to address despite complaints.
- Discrimination based on protected characteristics (age, sex, race, disability, religion, etc.).
- Serious pay cuts or demotion without agreement or justification.
- Unsafe working conditions that breach health and safety obligations.
- Changing your job role fundamentally without consultation or agreement.
- Unreasonable workload or targets designed to force you out.
- Victimisation for whistleblowing or raising grievances.
Crucially, you must resign because of the breach, not for unrelated reasons. If you continue working for too long after the breach (typically more than a few weeks), tribunals may decide you've "affirmed" the contract and accepted the breach. You must also usually have 2 years' continuous service to claim, unless the breach involves discrimination, whistleblowing, or health and safety (which have no qualifying period).
Before resigning, you should normally raise a formal grievance to give your employer a chance to fix the problem. Tribunals expect you to follow internal procedures where safe and reasonable to do so. If you resign without attempting this, your claim may be weakened or you may face a reduction in compensation.
How much compensation can I get for constructive dismissal in 2026?
Constructive dismissal compensation consists of two main components:
- Basic Award: Calculated like redundancy pay based on your age, length of service, and weekly pay (capped at £700). Maximum: £21,000.
- Compensatory Award: Covers your actual financial losses — unpaid notice, lost earnings, pension contributions, benefits, and job search costs. Capped at £115,115 or 52 weeks' gross pay, whichever is lower.
Typical tribunal awards for constructive dismissal range from £5,000 to £50,000, with the median around £12,000–£15,000. Higher awards occur when:
- You have long service (10+ years) and/or are aged 41+ (higher basic award).
- You were out of work for many months or took a significant pay cut (higher compensatory award).
- Your employer grossly breached procedures, triggering an ACAS Code uplift of up to 25%.
- The claim involves discrimination (no cap on compensation, plus injury to feelings awards of £1,200–£60,000).
In practice, around 70% of claims settle before reaching a tribunal hearing, typically for 40–60% of the calculated award to reflect litigation risk, legal costs, and the desire for quick resolution. Settlement amounts vary widely depending on the strength of evidence, witness statements, and the employer's willingness to negotiate.
Use our calculator to estimate your specific entitlement, then compare with redundancy pay or unfair dismissal compensation to understand different claim types.
What is the statutory cap for constructive dismissal compensation in 2026?
For the 2026/27 tax year, the statutory caps are:
- Basic Award Cap: £21,000 (30 weeks × £700 weekly pay cap). This applies to all unfair dismissal claims including constructive dismissal.
- Compensatory Award Cap: £115,115 or 52 weeks' gross annual pay, whichever is lower. This means if you earned £50,000/year, your compensatory award is capped at £50,000, not the full £115,115.
- Weekly Pay Cap (for basic award only): £700. Even if you earn £2,000/week, only £700 is used for basic award calculations.
Important exceptions: If your constructive dismissal involves discrimination (based on age, sex, race, disability, religion, sexual orientation, pregnancy, etc.), there is no cap on compensation. You can also claim for injury to feelings, which ranges from £1,200 to £60,000 depending on severity. Discrimination claims can result in awards well over £100,000 in serious cases.
Whistleblowing claims (protected disclosures) also have no cap on compensation. If you were constructively dismissed for raising concerns about wrongdoing, illegal activity, or dangers to health and safety, your compensatory award can exceed the standard £115,115 limit.
Do I need 2 years' service to claim constructive dismissal?
In most cases, yes — you need at least 2 years' continuous service to bring a standard unfair constructive dismissal claim at an Employment Tribunal. This is the same qualifying period required for ordinary unfair dismissal claims.
However, there are important exceptions where you can claim constructive dismissal from day one of employment:
- Discrimination: If you resigned due to discrimination based on a protected characteristic (age, sex, race, disability, pregnancy, religion, sexual orientation, gender reassignment, marriage), you can claim without any service requirement.
- Whistleblowing: If you were forced out for making a protected disclosure about wrongdoing, health and safety dangers, or legal breaches.
- Health and safety: If you resigned because your employer failed to protect you from serious and imminent danger.
- Asserting statutory rights: Such as claiming the National Minimum Wage, requesting flexible working, or taking maternity/paternity leave.
- Trade union membership or activities: Being forced out for joining or participating in a union.
If you have less than 2 years' service and your resignation doesn't fall into one of these exceptions, you cannot bring a constructive dismissal claim at an Employment Tribunal. However, you may still have other legal options, such as breach of contract claims in the civil courts (for unpaid wages, notice pay, etc.) or complaints to ACAS or your industry regulator.
Before resigning, check your service length and whether your situation qualifies for an exception. Understand your notice period obligations and explore your options with ACAS or an employment solicitor.
How is the basic award calculated for constructive dismissal?
The basic award for constructive dismissal uses exactly the same formula as statutory redundancy pay. It's based on three factors: your age, length of service, and weekly gross pay.
Step-by-step calculation:
- Calculate your weekly gross pay: Annual salary ÷ 52. This is capped at £700 per week (2026 limit), even if you earn more.
- Count your complete years of service: From your start date to your resignation date. Only complete years count — partial years are ignored. Maximum: 20 years.
- Apply the age-weighted multiplier:
- Under 22: 0.5 weeks' pay per year
- Aged 22–40: 1 week's pay per year
- Aged 41+: 1.5 weeks' pay per year
- Multiply and sum: (Years in each age band × multiplier × weekly pay), then add together.
Example: You're 45 years old, earned £50,000/year (£961/week, capped at £700), and worked for 8 years. Your calculation:
- Years 1–5 (aged 37–41, age band 22–40): 5 years × 1 week × £700 = £3,500
- Years 6–8 (aged 42–44, age band 41+): 3 years × 1.5 weeks × £700 = £3,150
- Total Basic Award: £6,650
The maximum possible basic award is £21,000 (20 years × 1.5 weeks × £700). Tribunals rarely reduce the basic award unless you contributed significantly to your own dismissal through serious misconduct. Unlike the compensatory award, the basic award does not reflect your actual financial losses — it's a statutory formula.
Use our Redundancy Pay Calculator to see how the same formula works for voluntary redundancy, or calculate your specific basic award using the tool above.
Data Sources & Legal Framework
This calculator uses official UK government rates, Employment Tribunal rules, and statutory caps for the 2026/27 tax year:
- Employment Rights Act 1996: Legal framework for unfair dismissal and constructive dismissal claims.
- Basic Award rates: GOV.UK Redundancy Pay (same formula applies to constructive dismissal basic awards).
- Compensatory Award cap 2026: GOV.UK Unfair and Constructive Dismissal (£115,115 or 52 weeks' pay, whichever is lower).
- Weekly pay cap 2026: £700 (increased from £643 in 2024/25).
- ACAS Code of Practice: Disciplinary and Grievance Procedures (uplift/reduction of up to 25% for non-compliance).
- Employment Tribunal case law: Median awards and settlement ranges based on Ministry of Justice tribunal statistics 2023–2025.
Disclaimer: This calculator provides estimates only for educational and planning purposes. Actual Employment Tribunal awards depend on the strength of evidence, witness credibility, tribunal decisions, and settlement negotiations. Outcomes vary significantly case-by-case. For legal advice specific to your situation, consult a qualified employment law solicitor or contact ACAS on 0300 123 1100 (free, confidential advice).
Your Privacy & Data Security
This calculator runs entirely in your browser using JavaScript. No personal information, employment details, or salary data is sent to our servers, stored, or shared with third parties. All calculations are performed locally on your device, ensuring your sensitive information remains completely private.
If you're considering a constructive dismissal claim, seek free advice from ACAS (Advisory, Conciliation and Arbitration Service) on 0300 123 1100 or visit www.acas.org.uk. For legal representation, contact the Employment Lawyers Association or use the Law Society's Find a Solicitor service.
Time limit reminder: You must start ACAS Early Conciliation within 3 months less 1 day of your resignation date. Missing this deadline usually means losing your right to claim. Act quickly if you believe you've been constructively dismissed.