Unfair Dismissal Compensation Calculator UK 2025/26 — Basic & Compensatory Award
Unfair dismissal compensation has two components: the basic award (calculated like statutory redundancy pay) and the compensatory award (actual financial losses, capped at £115,115 for 2025/26). This calculator works out both, applies relevant adjustments, and estimates what you might receive at tribunal.
Weekly pay cap 2025/26: £643. Basic award max: £19,290. Compensatory award cap: £115,115 or 52 weeks gross pay (lower of). Time limit: 3 months minus 1 day from dismissal (ACAS early conciliation pauses clock). Polkey deductions, contributory fault, and ACAS uplift/reduction all affect final figure. Results are estimates only.
The Two-Part Award Structure
Unfair dismissal compensation is made up of two parts that are calculated separately then combined:
- Basic award — a fixed formula award based on age, service, and weekly pay. It cannot be increased for any reason but can be reduced if the claimant contributed to their own dismissal or refused an offer of reinstatement.
- Compensatory award — covers actual financial losses and is subject to a cap. It is reduced by Polkey, contributory fault, and failure to mitigate. It can be increased by the ACAS uplift.
Duty to Mitigate
Claimants have a duty to take reasonable steps to find new work. If you do not take reasonable steps (e.g. not applying for jobs, turning down suitable offers), the tribunal will reduce your compensatory award by the earnings you could have received. You must be able to show the steps you have taken to find new work — keep records of all job applications, interviews, and rejections. The tribunal will not penalise you for being unable to find work, only for not trying.
Settlement — Negotiating Before Tribunal
Most unfair dismissal claims settle before reaching a full tribunal hearing, often through ACAS early conciliation or during the proceedings. The settlement value is typically somewhere between the employer’s assessment of their Polkey risk and the claimant’s full award estimate. Factors that strengthen your settlement position: clear procedural failures by the employer; strong evidence of your losses; and the employer’s litigation risk and legal costs.
Frequently Asked Questions
3 months minus 1 day from the effective date of termination. You must contact ACAS to start early conciliation before the deadline — this pauses the clock. Missing the deadline means your claim will be time-barred and the tribunal has very limited discretion to extend it (only where it was not reasonably practicable to claim in time). Do not delay.
Yes — tribunals can order reinstatement (returning you to your old job as if the dismissal never happened) or re-engagement (returning you to comparable employment with the same employer). In practice, very few reinstatement orders are made because the employment relationship has usually broken down. If an employer refuses to comply with a reinstatement order, an additional compensatory award of up to 52 weeks pay is made, and the case does not go back to court for enforcement.