Unfair Dismissal Compensation Estimator

The basic award

• Half a week's pay for each year of service under 22, one week from 22 to 40, and one and a half weeks from 41.
• Capped at 20 years of service and at the statutory weekly pay limit.
• Reduced by any statutory redundancy payment already made, and by any conduct that makes a reduction just and equitable.

The compensatory award

• Immediate loss of earnings from dismissal to the hearing, net of pay from any new job.
• Future loss, based on how long the tribunal thinks it will take to find comparable work.
• Loss of statutory rights, conventionally a modest fixed sum, plus pension loss which can be substantial in defined benefit schemes.
• Capped at the lower of the statutory maximum or 52 weeks' gross pay, except in whistleblowing and health and safety dismissals where there is no cap.

Adjustments that move the number

The real cost of defending a claim

Costs orders are rare in the employment tribunal, so each side normally bears its own legal fees. A defended claim reaching a three-day final hearing typically takes 12 to 18 months and consumes significant management time in disclosure, witness statements and preparation.

This is why commercial settlement often makes sense even in a defensible case. ACAS early conciliation is free, confidential, and available before a claim is issued, and a settlement agreement gives you a clean waiver of claims.