Total estimated compensation
£15,000
Basic award + compensatory award
Basic award
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Compensatory award (pre-cap)
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Compensatory cap applied
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Compensatory award (capped)
—
Total estimate
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Estimates only. Compensatory award is at tribunal discretion. Actual amounts depend on loss of earnings, mitigation efforts, contributory fault and judicial assessment. Employment Rights Act 2025 changes are ongoing — check GOV.UK for updates.
Frequently Asked Questions
What is the basic award for unfair dismissal?
The basic award is calculated in the same way as statutory redundancy pay — using age, years of service (up to 20) and weekly pay (capped at £700 for 2025/26). It is the minimum compensation for an unfair dismissal claim regardless of actual financial loss.
How is the compensatory award calculated?
The compensatory award compensates for actual financial loss caused by the unfair dismissal, including lost earnings, loss of benefits and future loss of earnings. It is capped at the lower of 52 weeks' gross pay or £105,707 for 2025/26. Tribunals may reduce awards for contributory fault or failure to mitigate.
What changes are coming under the Employment Rights Act 2025?
The Employment Rights Act 2025 introduces day-one unfair dismissal rights, removing the current two-year qualifying period. This significantly expands the pool of employees who can bring unfair dismissal claims. The Act is being implemented in stages through 2025 and 2026 — employers should monitor GOV.UK for commencement dates.