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Dismissal compensation tool

Unfair Dismissal Compensation Estimator

What this tool does

Use this page when the dismissal letter, appeal outcome or process paperwork is the real problem. It gives a first-pass unfair-dismissal award guide so you can judge the likely shape of the claim, the time pressure and the best next route.

The result is only a guide. Tribunals can reduce awards for mitigation, contributory conduct or the chance the dismissal would still have happened. Treat the time-limit guide as an act-now prompt, not as a safe date to leave until the last minute.

Use this page first only when the dismissal itself is the real issue:

If the urgent problem is the payslip, notice, holiday, redundancy line or settlement wording, use the final-pay, redundancy or settlement routes first and come back here once those lines are separated.

Pick the first route from the document you have
  • Dismissal letter or appeal outcome: stay on this page first.
  • Payslip, notice, holiday or deduction line: use final pay first.
  • Settlement agreement or one exit-offer total: use settlement or the compare page first.
  • Redundancy paperwork and a statutory figure question: use redundancy first.
Before you rely on the estimate
  • Check whether the real issue is dismissal fairness, a dismissal reason with special protection, or simply unclear payment lines on the way out.
  • Keep the dismissal letter, appeal outcome, meeting notes, payslips and evidence of job-search efforts together.
  • Do not miss the tribunal time limit while you are still trying to perfect the figures.
  • Use Acas early conciliation quickly if you may need a claim.
Use the result in this order
  1. Start by checking whether the dismissal itself is the issue, not just the payment labels.
  2. Use the estimate to separate the basic-award element from the loss-based element.
  3. Work out the usual time-limit pressure before you spend too long perfecting every figure.
  4. Move to final pay, redundancy or settlement if the dispute is really about those routes instead.
Checked against official sources

Last reviewed: 29 March 2026. Checked against Acas, GOV.UK, the Employment Rights Act framework, and the 2026 increase-of-limits order.

Checked on

29 March 2026

Official source links

Acas, GOV.UK and the current limits order linked below

Recheck when

Dismissal reason, service length, mitigation or annual limits change

What this estimate assumes

  • The basic-award framework uses age bands, capped service and a capped week's pay.
  • The compensatory framework uses lost earnings and a cap based on the lower of the statutory limit and 52 weeks' gross pay.
  • It does not include reductions for mitigation, contributory fault or the chance the dismissal would still have happened.
  • It does not prove that an ordinary unfair-dismissal claim qualifies.
  • It is strongest when you already have a dismissal date, a rough loss picture and the main dismissal documents.

When to use a different page

Choose the next page from the document in front of you

Use unfair dismissal first when the dismissal letter or appeal outcome is the real problem

Stay on unfair dismissal

Use this first if the main document is a dismissal letter, appeal outcome, investigation outcome or meeting note and the real dispute is whether the dismissal was fair.

Move to final pay first

Use final pay first if the urgent problem is wages, notice, holiday, deductions or a last payslip that does not show the lines clearly.

Move to settlement or redundancy first

Use settlement or redundancy first if the immediate question is really about an agreed exit offer, a tax split or a statutory redundancy figure rather than dismissal fairness.

Basic award

Think of this as the fixed framework, not the whole claim

The basic award uses an age-and-service formula with a capped week's pay. It is useful as the more mechanical part of the estimate, but it is often not the biggest moving part.

Compensatory award

Loss evidence usually matters more in practice

The compensatory side is about financial loss caused by the dismissal, often centred on lost earnings. The cap matters, but evidence of what you lost and how you mitigated it matters just as much.

Time limit

Do not wait for a perfect number before acting

Tribunal time limits are short. The result should help you organise the claim and documents quickly, not encourage you to sit on the issue while you refine every assumption.

Unfair dismissal FAQs

Questions people usually ask after seeing the estimate

Does this estimator tell me whether the dismissal was legally unfair?

No. It only helps you sense-check the likely shape of compensation if unfair dismissal is already the right route. Whether the dismissal was legally unfair depends on the facts, procedure and legal route.

Is the time limit always 3 months minus 1 day?

That is the usual starting warning for ordinary unfair-dismissal claims, but the exact position can depend on the end date and early conciliation. Use the guide date to act quickly, not to leave it until the last minute.

Why can the final number be much lower than the estimate?

Awards can be reduced if someone found work quickly, did not mitigate loss, contributed to the dismissal, or would probably have been dismissed anyway even with a fairer process.

When should I use a different WorkRightsUK page first?

Use redundancy if you are really checking statutory redundancy pay, settlement if you are checking an agreed exit package, and final pay if the immediate issue is wages, notice, holiday or deductions.

What if I have less than the usual service for ordinary unfair dismissal?

The usual service rule is only one part of the picture. Automatic unfair dismissal, discrimination, whistleblowing and other routes can work differently, so treat a short-service warning as a prompt to check the route carefully rather than as the final answer.

Official sources used

Official source links for this page

Acas: Unfair dismissal

Used for qualification guidance, automatic-unfair context and the standard tribunal time-limit warning.

Open official source

Acas: Early conciliation and tribunal time limits

Used for the usual "3 months minus 1 day" warning and early-conciliation route.

Open official source

Acas: Employment Rights Act 2025 changes

Used for the ordinary unfair-dismissal qualifying-period change due from 1 January 2027.

Open official source

Legislation.gov.uk: Employment Rights Act 1996, section 124

Used for the unfair-dismissal compensatory-award framework and cap structure.

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Legislation.gov.uk: The Employment Rights (Increase of Limits) Order 2026

Used for the updated unfair-dismissal compensation cap and capped week's pay from 6 April 2026.

Open official source