Acas has published a draft new Code of Practice on Disciplinary and Grievance Procedures for consultation, the first full revision since 2009.
The proposals place greater emphasis on early resolution, proportionality and preventing workplace disputes from escalating unnecessarily.
The consultation closes on 23 September 2026, with Acas currently expecting the updated Code to come into effect in 2027.
So, what could change for employers?
One of the most significant proposals is to bring informal resolution into the statutory Code itself.
Employers would be encouraged to consider resolving concerns informally before moving to a formal disciplinary or grievance process. Where a formal disciplinary meeting is required, employers should explain what informal steps have been taken or why none were appropriate.
This is significant because Employment Tribunals can, in certain claims, adjust compensation by up to 25% for an unreasonable failure to comply with the Code.
Serious allegations may, of course, require an immediate formal process. The key is to consider and document whether informal resolution is appropriate.
The draft Code makes clear that suspension should only be used in limited circumstances and should not be an automatic response to a serious allegation.
Employers should consider the risks involved and whether alternatives could be used, such as temporarily changing duties, reporting lines or working arrangements. Any suspension should also be kept under review.
The proposed Code includes more guidance on avoiding unlawful discrimination and making reasonable adjustments or other adaptations to disciplinary and grievance procedures.
Depending on the circumstances, this could include adjustments to meetings, communication, documentation or timescales.
The draft Code gives greater prominence to mediation and facilitated conversations as alternatives to formal proceedings.
These approaches will not be suitable in every case, particularly where serious allegations require investigation, but they may help employers resolve disputes earlier, preserve working relationships and avoid unnecessary escalation.
The draft uses ‘worker’ rather than ‘employee’ throughout.
However, this does not automatically change the statutory rules governing which Employment Tribunal claims can attract an uplift or reduction in compensation for failure to comply with the Code. Employment status and the particular claim will remain important.
The proposals also emphasise the importance of training managers to deal with workplace concerns effectively.
Managers should understand when an informal conversation may be appropriate, when HR should become involved, when mediation might help and when a formal procedure is necessary.
Nothing needs to change immediately because the Code remains in draft form. However, employers can use the consultation period to:
The overall direction is clear and aligns with what we have been advising employers for several years now, formal procedures should not necessarily be the starting point for workplace conflict.
Acas estimates that formal disciplinary and grievance procedures cost UK employers around £2.36 billion each year, while informal resolution costs around ten times less.
For employers, an increasingly important question may therefore be:
‘What did we reasonably do to try to resolve this before it became a formal process?’
Employers that can answer that question, and demonstrate the steps they took, should be better placed to manage employee relations and reduce the risk of disputes escalating.
We provide practical HR and employment law support to businesses, including disciplinary and grievance advice, suspension decisions, HR policies, workplace investigations and manager training.
If you would like us to review your existing procedures or help you prepare for the proposed changes, please get in touch.
Appointments are available by telephone or via video call, so no matter where you are in England or Wales we can assist you.
The information contained in this blog post is provided for guidance and is a snapshot of the law at the time it is written. It is provided for your information only and should not be used as a substitute for obtaining legal advice that it specific to your particular circumstances.
The guidance should not be relied upon in any decision making process. It is strongly recommended that you seek advice before taking action.
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