How to estimate your compensation
You want a rough idea of what a claim could be worth before you decide.
How do you estimate unfair dismissal compensation?
Start with four figures: your last drawn salary, your length of service, whether you were confirmed or on probation, and any income earned since your dismissal.
Back wages, where awarded, are capped at 24 months for a confirmed employee and 12 months for a probationer, so your status changes the ceiling.1
Treat any figure as a range for planning, not a promised outcome, because the award depends on the court’s discretion. A rough estimate still helps you weigh a claim’s realistic financial picture.
What can move the number?
Income from a new job after your dismissal can be deducted from the back wages figure, which lowers the total compared with a simple salary multiplication.2 A longer case does not produce a larger figure once the cap is reached.
Compensation in lieu of reinstatement, where relevant, is a separate figure, not part of the same number. Keep a simple log of your salary history and new income.
How do you keep the estimate current?
Revisit the estimate as your case moves on. New income, a change in how your service is counted or new information about your employer’s position can all shift the range.
Keep a note or spreadsheet with your key figures and update it as things change. Sharing it with your lawyer helps them advise on your current situation.
What should you do next?
Write down your last drawn salary, start date and dismissal date. Read about how back wages are calculated and what compensation in lieu of reinstatement involves, and confirm your filing deadline with the deadline calculator.
If the estimate suggests a claim is worth bringing, an employment lawyer can check your figures against your documents and act on it if there are grounds.
If your estimate suggests a claim is worth bringing, an independent employment lawyer can check your figures against your documents and act on it if there are grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
What figures do I actually need to build an estimate?
Your last drawn salary, your length of service, whether you were confirmed or on probation, and any income earned since your dismissal. Together these shape the realistic range.
Can an online tool give me an exact figure?
No. The Industrial Court uses discretion in the final award, so treat any estimate as a planning range, not a promised outcome.
Does my notice period factor into the estimate?
Notice pay is usually a separate entitlement from back wages or compensation in lieu of reinstatement, so list it separately.
Should I make financial decisions based on a rough estimate alone?
Use it for general planning, but avoid major financial decisions on it alone until someone has reviewed your actual documents.
Keep reading
If your estimate suggests a claim is worth bringing, an independent employment lawyer can check your figures against your documents and act on it if there are grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.