Unfair Dismissal Compensation Calculator 2026

Calculate how much compensation you could receive for unfair dismissal. This calculator includes both the basic award and compensatory award, plus adjustments for ACAS uplift, contributory fault, and Polkey reductions.

How Unfair Dismissal Compensation Works

Unfair dismissal compensation has two components:

1. Basic Award

Calculated exactly like statutory redundancy pay:

Age During Service	Rate
Under 22	0.5 week's pay per year
22 to 40	1 week's pay per year
41 and over	1.5 weeks' pay per year

Maximum:

• Weekly pay capped at £751 (2026-27)
• Maximum 20 years counted
• Maximum basic award: £22,530

2. Compensatory Award

Covers your actual financial losses:

Loss Type	What's Included
Past loss of earnings	Net pay from dismissal to tribunal
Future loss of earnings	Estimated time to find equivalent job
Loss of benefits	Pension, car, healthcare, bonuses
Loss of statutory rights	Typically £500-700
Expenses	Job search costs, travel

Cap: Lower of £123,543 or 52 weeks' gross pay (2026-27)

Adjustments to Compensation

ACAS Uplift (Increase)

If your employer unreasonably failed to follow the ACAS Code:

• Tribunal can increase compensation by up to 25%
• Applies to both basic and compensatory awards
• Common when employer skips disciplinary procedures

Contributory Fault (Reduction)

If your conduct partly caused the dismissal:

• Tribunal assesses your percentage contribution
• Both awards reduced by that percentage
• Can be 0% to 100%

Example: You admitted misconduct but the sanction was too harsh = 25% reduction

Polkey Reduction (Reduction)

If a fair procedure would have led to dismissal anyway:

• Named after Polkey v AE Dayton Services
• Tribunal estimates likelihood dismissal would have happened
• Compensation reduced accordingly
• Can reduce to zero if dismissal was inevitable

Example: Unfair process, but employer would have discovered gross misconduct = 75% reduction

Failure to Mitigate

You must take reasonable steps to find work:

• Apply for suitable jobs
• Accept reasonable offers
• Don't unreasonably refuse opportunities

Failure to mitigate can reduce future loss of earnings.

Order of Calculation

The tribunal calculates compensation in this order:

1. Calculate basic award
2. Calculate compensatory award (total losses)
3. Apply Polkey reduction (if any)
4. Apply contributory fault (if any)
5. Apply ACAS uplift (if applicable)
6. Check against statutory caps
7. Deduct payments already made

Example Calculations

Example 1: Straightforward Case

Employee: Age 35, 8 years service, £500/week

Basic Award:

• 8 years × 1 week × £500 = £4,000

Compensatory Award:

• 26 weeks without work × £400 net = £10,400
• Future loss: 12 weeks × £400 = £4,800
• Loss of statutory rights: £600
• Total: £15,800

Adjustments:

• ACAS uplift: +20% = +£3,960
• Total: £23,760

Example 2: With Reductions

Employee: Age 45, 12 years service, £800/week

Basic Award:

• 7 years (22-40) × 1 × £751 = £5,257
• 5 years (41+) × 1.5 × £751 = £5,632.50
• Total: £10,889.50

Compensatory Award:

• Past losses: £25,000
• Future losses: £15,000
• Benefits: £3,000
• Total: £43,000

Adjustments:

• Polkey reduction: -30% = -£12,900
• Subtotal: £30,100
• Contributory fault: -20% = -£6,020
• Compensatory award: £24,080
• Total: £34,230

Key Caps and Limits

Item	Amount (2026-27)
Weekly pay cap (basic award)	£751
Maximum basic award	£22,530
Compensatory award cap	£123,543 or 52 weeks' gross pay
ACAS uplift	Up to 25%
Maximum reduction for contributory fault	100%

No Cap For Certain Cases

The compensatory award cap doesn't apply to:

• Whistleblowing dismissals
• Health and safety dismissals
• Dismissals related to discrimination claims

These can exceed £123,543.

What This Calculator Does

This calculator helps you estimate:

• Your basic award based on age, service, and pay
• Your compensatory award based on losses
• The impact of ACAS uplift
• The impact of Polkey and contributory fault reductions
• A realistic range for your total compensation

Important: This is an estimate. Actual tribunal awards depend on evidence, tribunal assessment, and specific circumstances. Always seek legal advice for your case.

What Losses to Include

Past Loss of Earnings

From dismissal to tribunal hearing:

• Net weekly pay × weeks without work
• Minus any new earnings
• Minus any benefits received

Future Loss of Earnings

From tribunal onwards:

• How long to find equivalent job?
• Or difference if new job pays less
• Tribunal estimates based on:
  • Job market conditions
  • Your age and experience
  • Efforts to find work
  • Health issues

Typical ranges: 13-52 weeks

Loss of Benefits

Value these at replacement cost:

Benefit	Valuation Method
Pension	Annual employer contribution
Company car	BIK value or lease cost
Private healthcare	Annual premium
Life insurance	Annual premium
Bonuses	Average of last 2-3 years
Share options	Expert valuation

Mitigation

You have a duty to mitigate your losses by:

• Actively looking for work
• Accepting suitable job offers
• Not turning down reasonable opportunities
• Claiming available benefits

Evidence needed:

• Job applications and responses
• Interview records
• Salary expectations adjusted over time

Failure to mitigate can significantly reduce your compensatory award.

Settlement Considerations

Use this calculator to:

• Value your claim before settlement negotiations
• Assess offers against likely tribunal award
• Factor in risks: Tribunal might find dismissal fair, or apply reductions
• Consider costs: Time, stress, legal fees

Reality check: Most unfair dismissal cases settle for 40-60% of maximum value due to risks and uncertainties.

Next Steps

1. Use this calculator to estimate your compensation
2. Gather evidence of your losses and mitigation efforts
3. Get legal advice from an employment solicitor
4. Consider ACAS Early Conciliation before making a claim
5. Prepare a schedule of loss with supporting documents

For more information, see:

• Unfair Dismissal Compensation Guide
• Employment Tribunal Claims
• ACAS Code of Practice