Unfair Dismissal Compensation Calculator UK 2026

What is the maximum unfair dismissal compensation in the UK for 2026?

The maximum compensatory award for unfair dismissal in 2026/27 is £115,115 or one year's gross salary, whichever is lower. The basic award is capped at £21,000 (30 weeks × £700 statutory maximum weekly pay). So for a standard unfair dismissal claim, the absolute maximum is £136,115 (basic + compensatory).

However, these caps do not apply if your dismissal was for:

• Discrimination (age, sex, race, disability, etc.) — compensation is unlimited
• Whistleblowing (public interest disclosure) — compensatory award is uncapped
• Health and safety concerns — compensatory award is uncapped

Discrimination awards commonly exceed £50,000 and can reach six figures for serious cases involving injury to feelings, financial losses, and aggravated damages.

How is unfair dismissal compensation calculated in the UK?

Unfair dismissal compensation consists of up to five components:

1. Basic Award (Like Redundancy Pay):

• Under 22: 0.5 weeks' pay per year of service
• Age 22-40: 1 week's pay per year of service
• Age 41+: 1.5 weeks' pay per year of service
• Weekly pay capped at £700; service capped at 20 years

2. Compensatory Award (Actual Financial Losses):

• Lost earnings (net pay × weeks unemployed)
• Loss of statutory rights (£500-£600)
• Pension contributions lost
• Benefits lost (car, insurance, bonuses)
• Job search costs (reasonable expenses)
• Future losses (if still unemployed at tribunal)
• Capped at £115,115 or one year's gross salary

3. ACAS Uplift (Up to 25%):

• Applied if employer breached ACAS Code procedures
• Typical uplift: 10-25% of compensatory award

4. Notice Pay:

• If dismissed without proper notice
• Statutory minimum: 1 week per year (max 12 weeks)

5. Holiday Pay:

• Untaken annual leave owed at termination

The tribunal assesses each component separately and must explain the calculation in its judgment. Use our calculator to estimate your total award based on your specific circumstances.

Who qualifies for unfair dismissal compensation in the UK?

To claim ordinary unfair dismissal, you must meet all three criteria:

• Employee status: You must be an employee, not a worker, contractor, or self-employed (check your employment contract and working arrangements)
• 2 years' continuous service: You must have worked for your employer continuously for at least 2 years (104 weeks) at the effective date of termination
• 3-month tribunal deadline: You must submit your ET1 claim form to an employment tribunal within 3 months minus 1 day of your dismissal date (ACAS Early Conciliation extends this deadline)

Exceptions — No Service Requirement:

You can claim unfair dismissal without 2 years' service if dismissed for "automatically unfair" reasons:

• Pregnancy, maternity, paternity, or adoption leave
• Whistleblowing (public interest disclosure)
• Health and safety concerns
• Asserting a statutory right (minimum wage, working time, etc.)
• Jury service or acting as an employee representative
• Discrimination (age, sex, race, disability, religion, sexual orientation)

If you're unsure about your status or service length, consult ACAS (0300 123 1100) or an employment solicitor before your tribunal deadline expires. Missing the deadline usually means losing your right to claim.

What losses can I claim in a compensatory award?

The compensatory award covers your actual financial losses caused by the unfair dismissal. You can claim:

1. Immediate Loss of Earnings:

• Net weekly pay (after tax and NI) × weeks unemployed
• From dismissal date to tribunal hearing or new job start date
• If you found a lower-paid job, claim the difference for a reasonable period

2. Loss of Statutory Rights:

• Standard award: £500-£600
• Compensates you for losing unfair dismissal protection in a new role (you'll need 2 years' service again)

3. Pension Losses:

• Employer pension contributions you would have received
• Calculate: employer contribution % × your salary × weeks unemployed ÷ 52
• Example: 3% × £40,000 × 20 weeks ÷ 52 = £461

4. Loss of Benefits:

• Company car (calculate taxable benefit value pro-rated)
• Private health insurance (premiums × weeks ÷ 52)
• Performance bonuses you would have earned
• Share options, gym membership, phone allowance, etc.

5. Job Search Expenses:

• Travel to job interviews (mileage or public transport)
• Professional CV writing or career coaching
• Training courses to improve employability
• Must be reasonable and evidenced — keep receipts

6. Future Loss of Earnings:

• If still unemployed at tribunal, estimate future losses until you're likely to find work
• Tribunal will assess: your age, skills, local job market, efforts to find work
• Typical: 6-12 months future loss for professional roles; less for readily available roles

Duty to Mitigate:

You must take reasonable steps to reduce your losses by actively seeking work, applying for suitable roles, and accepting reasonable job offers. Unreasonable refusals or delays will reduce your award. Keep evidence of your job search (applications, interviews, rejection letters) to prove mitigation.

All losses must be directly caused by the dismissal and supported by evidence (payslips, contracts, benefit statements, receipts). The tribunal will scrutinise large claims, so accuracy and documentation are essential.

Can I get more compensation if my employer discriminated against me?

Yes — discrimination claims have no statutory cap on compensation. If your dismissal involved discrimination based on a protected characteristic (age, sex, race, disability, religion, sexual orientation, pregnancy, maternity, marriage/civil partnership, or gender reassignment), you can claim:

1. Financial Losses (Uncapped):

• Same as unfair dismissal (lost earnings, pension, benefits, job search costs)
• But no £115,115 cap — you can claim your full actual losses
• Particularly valuable if you earned over £115,115/year

2. Injury to Feelings Award:

• Lower band (less serious): £1,200–£12,800
• Middle band (serious): £12,800–£38,400
• Upper band (most serious): £38,400–£64,000
• Compensates for distress, humiliation, and damage to mental health caused by discrimination

3. Aggravated Damages:

• Additional award if employer acted maliciously, vindictively, or oppressively
• Typical: £5,000–£25,000

4. Interest on Awards:

• 8% interest on injury to feelings and financial losses from dismissal date to judgment date

Key Differences from Unfair Dismissal:

• No 2-year service requirement — you can claim from day one
• Longer tribunal deadline — 3 months minus 1 day (same as unfair dismissal, but calculated from last act of discrimination)
• Uncapped compensation — awards commonly exceed £50,000; six-figure awards are not uncommon for serious cases
• Can claim alongside unfair dismissal — you'll receive both awards if successful

Example:

A 55-year-old Finance Director earning £120,000 was dismissed due to age discrimination after 15 years' service. He was unemployed for 8 months. His tribunal award:

• Basic award: £21,000 (capped)
• Compensatory award (unfair dismissal): £115,115 (capped)
• Discrimination financial loss: £80,000 (8 months lost earnings above the cap)
• Injury to feelings: £28,000 (middle band)
• Interest: £6,500
• Total: £250,615

If you believe your dismissal involved discrimination, always bring both claims (unfair dismissal + discrimination) to maximise compensation and avoid the statutory cap. Seek specialist employment law advice early — discrimination cases require strong evidence of less favourable treatment.