employmentUpdated 1 April 2025

How much compensation can I get for unfair dismissal?

Short answer

An unfair dismissal award has two parts: a basic award (calculated like statutory redundancy pay, capped at approximately £22,530 from April 2026) and a compensatory award for actual losses, capped at the lower of £123,543 or 52 weeks' gross pay as of April 2026.

This guidance applies to Great Britain unless stated otherwise. Statutory limits are reviewed annually in April and the figures below apply from April 2026. If an employment tribunal upholds an unfair dismissal claim, it will usually award two elements of compensation. The basic award is calculated in the same way as a statutory redundancy payment: it takes into account the employee's age, length of continuous employment (capped at 20 years), and a week's pay (capped at £751 per week from April 2026). The multiplier per year of service is 1.5 for years worked after age 41, 1 for years worked between ages 22 and 40, and 0.5 for years worked before age 22. The maximum basic award from April 2026 is approximately £22,530. The compensatory award compensates the employee for actual financial losses flowing from the dismissal, including loss of earnings from the date of dismissal to the date of the hearing (less anything earned in alternative employment), loss of pension rights, and loss of statutory rights. The compensatory award is capped at the lower of £123,543 or 52 weeks' gross pay (figures from April 2026). Employees are under a duty to mitigate their losses by taking reasonable steps to find alternative employment. The tribunal can also reduce the award if it finds the employee contributed to their own dismissal, or increase it if the employer unreasonably failed to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures. Always verify current limits at GOV.UK as figures change each April. This information is general guidance only and does not constitute legal advice.

Still need help?

Describe your specific situation and Case Buddy will explain what the law says — free, instantly, with no sign-up required.

Ask Case Buddy free