Unfair dismissal basic award calculator (UK)
The basic award is the predictable half of an unfair dismissal award - the same arithmetic as statutory redundancy pay. Work it out here, then read why it's no longer the number that should worry an employer.
The employee
Formula: for each full year of service (max 20, counting back from dismissal) - 0.5 week's pay for years under age 22, 1 week for 22-40, 1.5 weeks for 41+ - with a week's pay capped at £751 (dismissals on or after 6 April 2026). Reductions can apply for conduct or a refused reinstatement offer, and a statutory redundancy payment for the same dismissal is offset.
The basic award = age-banded weeks (max 20 years, counting back) × a week's pay capped at £751 - maximum £22,530. It is the predictable half of an unfair dismissal award. The unpredictable half, the compensatory award, lost its cap for dismissals from 1 January 2027 - which is why the basic award is no longer the number that sizes an employer's real exposure.
How the basic award works
It borrows statutory redundancy pay's arithmetic exactly: count back through the employee's service, a maximum of 20 years, and for each full year add half a week's pay if they were under 22 that year, one week for ages 22 to 40, and one and a half weeks at 41 or over. A week's pay is the gross contractual figure, capped at £751 for dismissals on or after 6 April 2026 (the cap is uprated each April - current figures on our statutory rates page). Twenty years all at the top band and the cap gives the maximum: £22,530.
Three adjustments come up in practice: a tribunal can reduce the award for the claimant's conduct before dismissal, for unreasonably refusing reinstatement, and any statutory redundancy payment already made for the same dismissal is offset - the formulas are the same, so in a genuine redundancy the basic award is often already paid.
Why the compensatory award matters more now
The basic award has a hard ceiling; the compensatory award no longer does. For dismissals taking effect on or after 1 January 2027, the cap on the compensatory award is removed, so the real exposure in most cases is the claimant's actual loss - lost earnings to the hearing and beyond, pension, the lot. With tribunal backlogs past half a million claims, "lost earnings to the hearing" is a long meter. The full picture, including the 25% Acas uplift and the costs no judgment shows, is in what a tribunal actually costs an employer.
Who can claim - the 2027 change
For dismissals with an effective date of termination on or after 1 January 2027, the qualifying period drops to 6 months - so procedure starts mattering half a year into every employment, not two years in. Details and the transition rules: the 6-month rule explained.
Frequently asked questions
How is the unfair dismissal basic award calculated?
The same way as statutory redundancy pay: for each full year of service (counting back a maximum of 20), half a week's pay for years worked under age 22, one week for years 22 to 40, and one and a half weeks for years at 41 or over - with a week's pay capped at £751 for dismissals on or after 6 April 2026, giving a maximum basic award of £22,530.
Is the basic award the whole unfair dismissal payout?
No - it is usually the smaller part. The compensatory award covers the claimant's actual financial loss, and for dismissals taking effect on or after 1 January 2027 it has no cap, so the realistic exposure in most cases is driven by lost earnings, not the basic award formula.
Can the basic award be reduced?
Yes. A tribunal can reduce it for the claimant's conduct before dismissal, for an unreasonable refusal of an offer of reinstatement, and any statutory redundancy payment already made for the same dismissal is offset against it in a redundancy case.
Who qualifies to claim unfair dismissal?
For dismissals taking effect on or after 1 January 2027, employees with 6 months' service - down from two years. The trigger is the effective date of termination, so notice given in late 2026 that expires in 2027 falls under the 6-month rule.
Worth reading alongside
This calculator applies the statutory formula as published and shows its working, but it cannot know the facts of a case, possible reductions or uplifts, or anything a tribunal would weigh. Treat the figure as a starting point, and take advice on any live dispute.
The cheapest defence is a good record
Fair procedures actually followed and documented as you go - grievances, disciplinaries, reviews and the registers - are what keep this calculator hypothetical. CoDash keeps that record for you.