Unfair dismissal compensation cap 2026: tribunal limits, basic award and calculator
Last updated · By Mustafa Bilgic · Figures from the Employment Rights (Increase of Limits) Orders 2026 for Great Britain and Northern Ireland, and the Employment Rights Act 2025
This page sets out every unfair dismissal limit for 2026 in Great Britain and Northern Ireland, the figures for each year since 2020, how the basic and compensatory awards are worked out, and what the Employment Rights Act 2025 changes. The calculator applies the limits for your effective date of termination.
Unfair dismissal limits from 6 April 2026
The compensatory award cap rose by 4.5% from £118,223 to £123,543, and the week's pay limit from £719 to £751. The limit that applies depends on the effective date of termination, not the date of the hearing.
| Limit | England, Wales and Scotland | Northern Ireland |
|---|---|---|
| Compensatory award cap | £123,543 or 52 weeks' pay if lower | £123,785 |
| Week's pay for the basic award | £751 | £783 |
| Maximum basic award (30 weeks) | £22,530 | £23,490 |
| Minimum basic award for certain reasons | £9,157 | £9,512 |
| Guarantee payment for a workless day | £41 | £41 |
| Qualifying service | 2 years (6 months from 1 January 2027) | 1 year |
| Time limit to claim | 3 months (6 months from 1 October 2026) | 3 months |
Unfair dismissal compensation calculator
Basic award, compensatory cap and deadlines
How the basic award is worked out
The basic award counts back complete years of continuous employment from the effective date of termination, up to 20 years. Each year earns one and a half weeks' pay if you were 41 or over throughout it, one week's pay if you were 22 or over, and half a week's pay otherwise. The week's pay is capped at £751 in Great Britain and £783 in Northern Ireland, so the most anyone can get is 30 weeks at the cap. Where the dismissal was for health and safety representative duties, or for acting as an employee representative, pension trustee or working time representative, the basic award is at least £9,157 (£9,512 in Northern Ireland). The same age and service rules apply to statutory redundancy pay.
The compensatory award and its cap
The compensatory award covers the loss you suffered because of the dismissal, such as lost earnings, pension and other benefits, as far as the tribunal considers just and equitable. In Great Britain it cannot exceed the lower of £123,543 and 52 multiplied by a week's pay. The £751 limit on a week's pay in section 227 is written for the basic award, redundancy pay and other listed awards, not for this 52-week figure. There is no cap where the dismissal was for whistleblowing, for health and safety reasons, or for selecting you for redundancy for either of those reasons. Tribunals can also raise or cut an award by up to 25% where the employer or employee unreasonably failed to follow the Acas Code of Practice. Our guides to loss of earnings and future loss of earnings explain how lost pay is measured in injury claims.
What changes in October 2026 and January 2027
- 1 October 2026: the time limit for an unfair dismissal claim in Great Britain rises from 3 to 6 months, where the effective date of termination is on or after that date. The same change applies to discrimination claims, where the act complained of is on or after 1 October 2026.
- 1 January 2027: section 124 of the Employment Rights Act 1996 is repealed, so there is no cap on the compensatory award, and the qualifying period for ordinary unfair dismissal falls from 2 years to 6 months. Both changes apply where the effective date of termination is on or after 1 January 2027, even if notice was given before then.
- Northern Ireland is not covered by these changes: the qualifying period stays at 1 year, the time limit at 3 months and the cap at £123,785.
Unfair dismissal cap and week's pay since 2020
Under section 34 of the Employment Relations Act 1999, the limits move each year with the Retail Prices Index for September, and each new Order applies from 6 April. These are the figures from each year's Order.
| From 6 April | Cap, GB | Week's pay, GB | Cap, NI | Week's pay, NI |
|---|---|---|---|---|
| 2026 | £123,543 | £751 | £123,785 | £783 |
| 2025 | £118,223 | £719 | £118,455 | £749 |
| 2024 | £115,115 | £700 | £115,341 | £729 |
| 2023 | £105,707 | £643 | £105,915 | £669 |
| 2022 | £93,878 | £571 | £94,063 | £594 |
| 2021 | £89,493 | £544 | £89,669 | £566 |
| 2020 | £88,519 | £538 | £88,693 | £560 |
Discrimination claims are different
If the dismissal was also discrimination under the Equality Act 2010, compensation is assessed as a county court would assess damages, including an award for injury to feelings. Our page on Vento bands sets out those amounts. A personal injury claim against an employer is separate again: see claiming against your employer.
Sources and methodology
Each limit was read from the Order for that year and checked against the previous Order's old limit and the amended statute. The calculator applies section 119 of the 1996 Act, counting the years back from the effective date of termination, and was tested against worked examples for each rule.
- The Employment Rights (Increase of Limits) Order 2026, S.I. 2026/310, and the orders for 2020 to 2025, on legislation.gov.uk.
- The Employment Rights (Increase of Limits) Order (Northern Ireland) 2026, S.R. 2026/57, on legislation.gov.uk.
- Employment Rights Act 1996, sections 108, 111, 119, 120, 124 and 227, on legislation.gov.uk.
- Employment Rights Act 2025, section 25 and Schedule 12, with S.I. 2026/559 and S.I. 2026/954, on legislation.gov.uk.
Frequently asked questions
What is the unfair dismissal compensation cap for 2026?
For an effective date of termination from 6 April 2026, the compensatory award in England, Wales and Scotland is capped at the lower of £123,543 and 52 weeks' pay. In Northern Ireland the cap is £123,785.
Is the unfair dismissal cap being removed?
Yes, in Great Britain. The Employment Rights Act 2025 repeals the cap from 1 January 2027, for dismissals where the effective date of termination is on or after that date. It does not apply in Northern Ireland.
What is the maximum week's pay for the basic award in 2026?
£751 in England, Wales and Scotland and £783 in Northern Ireland, for an effective date of termination on or after 6 April 2026. The maximum basic award is 30 weeks' pay: £22,530 and £23,490.
How long do I have to claim unfair dismissal?
Three months less one day from the effective date of termination, extended by early conciliation. In Great Britain it becomes 6 months where the effective date of termination is on or after 1 October 2026. Northern Ireland stays at 3 months.
Do I need 2 years of service to claim unfair dismissal?
In Great Britain, 2 years for an effective date of termination before 1 January 2027 and 6 months from that date. Northern Ireland requires 1 year. Automatically unfair reasons, such as whistleblowing or health and safety, need no qualifying service.