EmployerKit Tools

Employment Tribunal Cost Calculator

Estimate your total exposure for common employment tribunal claims. Enter the details below and see an instant breakdown of basic award, compensatory award, and employer legal costs.

Based on MOJ tribunal statistics
Updated April 2025
Covers 6 claim types

Unfair dismissal is the most common tribunal claim. The basic award is calculated like redundancy pay. The compensatory award covers actual financial loss.

£500/week
£100Cap: £1,050/week£1,200
3 years
1 year20 years
🟡

Moderate exposure

Based on mid-range award estimate

£10,750£47,250

Total potential exposure range

How this is calculated

Basic award

3 years × 1x × £500/week

£1,500

Compensatory award (mid estimate)

Based on MOJ median for unfair dismissal (capped at £115,115)

£11,500

Employer legal costs

Settlement: £3,500 / Full hearing: £12,000

Not included in award

Management time cost

Estimated HR and management hours

£5,000
ScenarioAward onlyTotal exposure
Low (settle early)£7,250£10,750
Mid (ACAS conciliation)£13,000£21,500
High (full hearing)£30,250£47,250

What this means

This is a moderate-exposure claim. Most unfair dismissal cases at this level settle before a full hearing, often for £3,000-£8,000 including legal costs. Good employment contracts and documented procedures reduce your risk considerably.

Get your contracts audited before a claim is filed.

An EmployerKit Audit reviews your employment contracts and policies against current law, flags the gaps, and drafts replacement clauses. From £49, a fraction of what one tribunal claim will cost you.

EmployerKit Audit from £49

How employment tribunal awards work

1

Basic award

Calculated like redundancy pay: years of service multiplied by weekly pay (capped at £1,050) and an age multiplier (0.5 for under 22, 1 for 22-40, 1.5 for 41+). Only applies to certain claim types.

2

Compensatory award

Covers the claimant's actual financial loss: lost earnings, loss of pension rights and future losses. For unfair dismissal, capped at £115,115 or 52 weeks' pay (whichever is lower). Discrimination claims are uncapped.

3

Your costs on top

The award is what you pay the claimant. On top of that, add your own legal fees (typically £3,500-£12,000), management time preparing the case, and HR/witness time during the hearing. Costs are almost never awarded against employers.

Important: this is an estimate, not legal advice

This calculator provides an illustrative estimate of potential employment tribunal exposure. Actual awards vary significantly depending on the specific facts of each case, Polkey reductions, contributory fault, and tribunal discretion. The compensatory award estimates are based on Ministry of Justice median data and should not be relied upon as a prediction of any specific case outcome. For advice on a specific situation, consult an employment solicitor. EmployerKit is not a law firm and this tool does not constitute legal advice. Legal cost estimates are indicative only.