Government releases last increase to the unfair dismissal maximum compensation rate
On 18th March 2026 the Government released the Employment Rights (Increase of Limits) Order 2026, this confirms:
The maximum compensatory award for unfair dismissal increases from £118,223 to £123,543 (this will be the last increase before the cap is removed from 1st January 2027)
Maximum amount of a weeks pay for the purpose of calculating a redundancy payment or for various awards including the basic or additional award of compensation for unfair dismissal increases from £719 to £751
These increases apply on or after 6th April 2026.
