What is the maximum compensation for unfair dismissal?

From 1 January 2027, the statutory cap on unfair dismissal compensatory awards is completely removed.

Previously, ordinary unfair dismissal payouts were capped at a set threshold or one year's gross pay (whichever was lower). Under the new rules, tribunals will calculate awards based on actual financial loss without a statutory ceiling. The Workers of England Union works closely with specialist employment law teams to ensure our members' financial losses, future career impacts, and pension detriments are robustly and professionally calculated for tribunal submissions.