What is the compensatory award for unfair dismissal?

The compensatory award compensates for actual financial losses from the dismissal, lost earnings, loss of pension, and loss of statutory rights. It is capped at the lower of £123,543 or 52 weeks' gross pay (for dismissals from 6 April 2026). The tribunal assesses what is "just and equitable", it may be reduced for contributory fault or the Polkey principle (chance of fair dismissal).

What is the weekly pay cap for unfair dismissal in 2026/27?

The statutory weekly pay cap for calculating the basic award in unfair dismissal claims is £751 per week for claims where the dismissal occurred on or after 6 April 2026. If you earn more than £751 per week, only £751 is used in the basic award calculation. The cap does not apply to the compensatory award.

How long do I have to bring an unfair dismissal claim?

An unfair dismissal claim must be submitted to the Employment Tribunal within 3 months minus 1 day from the effective date of termination (EDT). Before submitting, you must notify ACAS under Early Conciliation, this can pause ("stop the clock" on) the time limit. Missing the 3-month limit is fatal to most claims, seek advice immediately.

What is the qualifying period for unfair dismissal?

From 6 April 2024, the qualifying period for unfair dismissal was reduced to 2 years of continuous employment. From 6 April 2026, under the Employment Rights Act 2025, the qualifying period is being further reduced, planned changes may lower or remove the qualifying period. Some dismissals (whistleblowing, pregnancy, trade union activities) have no qualifying period at all.

Can I be dismissed while on sick leave or maternity leave?

Dismissing an employee for reasons connected to sickness absence can be unfair if a fair process is not followed. Dismissing during pregnancy or maternity leave is automatically unfair dismissal (and may be discrimination) with no qualifying period required. The burden is on the employer to show a potentially fair reason (capability, conduct, redundancy, etc.) and that a fair process was followed.

Updated 6 April 2026

Unfair Dismissal Calculator · Free UK 2026/27

Calculate your basic award and estimate compensatory award for an unfair dismissal claim, using the Employment Rights Act formula with 2026/27 caps.

✓ Free to use✓ 2026/27 weekly pay cap £751✓ Basic + compensatory award✓ Instant results

Unfair Dismissal Calculator

Enter weekly pay, years of service, and age, basic award appears instantly

Gross weekly pay (£)

Complete years of service

Age at dismissal

Weeks of lost earnings (for compensatory)

Total estimated compensation

£22,800.00

Basic award: £7,200.00 + Compensatory award: £15,600.00

Gross weekly pay

£600.00

Weekly pay for basic award (cap £751)

£600.00

Complete years (max 20)

Age multiplier

×1.5

Basic award

£7,200.00

Compensatory award (est.)

£15,600.00

Compensatory cap

£123,543 or 52 weeks

Total estimated

£22,800.00

2026/27 caps (from 6 April 2026): weekly pay £751, compensatory award £123,543. Compensatory award is the tribunal's assessment of actual loss, reduced for contributory fault. This is not legal advice.

How Unfair Dismissal Compensation is Calculated

Quick Answer: Unfair dismissal compensation = basic award + compensatory award. Basic award = complete years × capped weekly pay (max £751) × age multiplier. Compensatory award = actual financial loss, capped at £123,543. Total maximum: ~£146,073 (2026/27).

The Basic Award Formula

The basic award is calculated identically to a statutory redundancy payment. Each complete year of qualifying service earns a fraction of a week's pay (capped at £751 for 2026/27):

Formula

Basic award = Complete years × Weekly pay (max £751) × Multiplier (0.5 / 1 / 1.5)

Age 22–40: ×1 per year | Age 41+: ×1.5 per year | Under 22: ×0.5 per year

Worked Example, £600/week, 8 years, age 45

Gross weekly pay£600

Weekly pay (capped at £751)£600 (under cap)

Complete years of service8 years

Age at dismissal45 → multiplier ×1.5

Basic award£600 × 8 × 1.5 = £7,200

Compensatory award cap£123,543 or 52 × £600

The compensatory award is what the tribunal considers just and equitable, reduced for contributory fault or Polkey reduction.

Frequently Asked Questions

The basic award for unfair dismissal is calculated the same way as a statutory redundancy payment: complete years of service × weekly pay (capped at £751 for 2026/27) × a multiplier based on age (0.5 per year under 22, 1 per year aged 22–40, 1.5 per year aged 41+). The maximum basic award is £22,530 (20 qualifying years × £751 × 1.5).