A New ACAS Code of Practice on Disciplinary and Grievance Procedures

The ACAS Code of Practice on disciplinary and grievance procedures provides important guidance for employers and workers dealing with workplace disputes, disciplinary matters and grievances. It is also relevant to Employment Tribunal proceedings, where tribunals must take the Code into account and may adjust an award by up to 25% for an unreasonable failure to comply.

The Code was last fully revised in 2009, with further amendments in 2015 relating to the statutory right to be accompanied. ACAS has now published a new draft Code of Practice on disciplinary and grievance procedures, with consultation open until 23 September 2026.

ACAS research estimates that formal disciplinary and grievance procedures cost UK employers around £2.36 billion a year, while 44% of working-age adults in England, Scotland and Wales experienced conflict at work in the previous 12 months.

Against this backdrop, ACAS is placing greater emphasis on how employers and workers can disagree better at work, with workplace concerns addressed fairly, transparently and promptly.

So, what could the new ACAS Code mean for employers?

Formalising informal resolution

One of the most significant proposed changes is the greater emphasis on informal resolution.

The existing statutory ACAS Code focuses primarily on formal disciplinary and grievance procedures. Although ACAS currently encourages employers and employees to try to resolve concerns informally, this is not incorporated into the statutory Code itself.

The Draft would change this by expressly encouraging early and informal resolution wherever possible. This could include informal conversations, facilitated discussions and mediation.

Under the Draft, employers should consider an informal conversation before treating a conduct or performance issue as a formal disciplinary matter, except where informal resolution would not be appropriate – for example, in cases of gross misconduct or other serious issues that could result in dismissal.

Importantly, the Draft also provides that a formal disciplinary invitation should state what steps have already been taken to resolve the concern informally, or explain why no such steps have been taken.

This means that informal resolution could become a much more prominent part of the disciplinary and grievance process and may be taken into account by an Employment Tribunal when considering compliance with the Code.

A change in language around workplace conflict

The Draft also adopts a less adversarial approach to workplace conflict.

Rather than relying so heavily on terms such as “disciplinary”, “grievance” and “allegations”, the Draft increasingly refers to “employer and worker concerns” when discussing informal resolution.

The intention is to encourage employers and workers to prevent, manage and resolve workplace conflict without unnecessary escalation.

The Draft also generally uses the term “worker”, rather than “employee”, unless employee status is specifically intended. This reflects ACAS’s view that the principles of the Code should be followed in relation to both workers and employees.

However, the distinction remains important because the statutory consequences associated with the Code apply in relevant claims, and the legal status of the individual will still matter.

Restrictions on suspension

The Draft provides additional guidance on the use of suspension during disciplinary investigations.

Suspension should only be considered where it is necessary to comply with a legal requirement or where an employer reasonably believes that it would protect:

• the investigation;
• the organisation;
• other staff; or
• the person under investigation.

The Draft also states that, where suspension is considered necessary, it should be as brief as possible and kept under review.

This reflects the potentially significant impact suspension can have on individuals, working relationships and the wider workplace.

Employers should therefore consider carefully whether suspension is genuinely necessary and proportionate in the circumstances.

Managing grievances

The Draft also provides more specific guidance on how employees and workers should raise formal grievances.

A short, clear written explanation of the concern will often be sufficient at the initial stage. The worker should also explain, where possible, how they would like the concern to be resolved and what steps have already been taken to resolve it informally, or why no informal steps were taken.

This approach is intended to help prevent unnecessarily lengthy and complex grievances, which can delay resolution and escalate workplace tensions.

The change is particularly relevant given the increasing use of AI to produce lengthy workplace documents. Rather than encouraging extensive written submissions from the outset, the Draft focuses on ensuring that the employer understands the concern and can begin addressing it promptly.

Reasonable adjustments under the Equality Act 2010

The Draft also places greater emphasis on employers’ existing obligations under the Equality Act 2010.

The current Code does not specifically refer to reasonable adjustments. The Draft would expressly remind employers that they must meet their Equality Act obligations when handling workplace concerns.

It provides examples of how disciplinary and grievance processes may need to be adapted depending on an individual’s circumstances, including:

• ensuring that a meeting venue is physically accessible;
• providing relevant documents in an accessible format; and
• allowing a worker to bring a support worker with knowledge of their disability, or an interpreter where there is a language barrier affecting their participation.

These obligations are not being created by the Draft – they already exist under the Equality Act 2010. However, their express inclusion in the Code places greater emphasis on accessibility and equality in disciplinary and grievance procedures.

What can employers do to prepare for the new ACAS Code?

It is important to remember that nothing has legally changed yet.

The Draft is currently subject to consultation, which remains open until 23 September 2026, and employers should continue to follow the existing Code.

However, the Draft provides a useful indication of the direction in which ACAS is looking to move. Employers may therefore wish to consider whether their current disciplinary and grievance procedures are ready for these potential changes.

Prioritise training

The Draft describes training and support for managers, workers and representatives as good practice.

Managers who are confident in handling informal concerns and difficult conversations will be better placed to resolve issues at an early stage, potentially preventing them from escalating into formal disciplinary or grievance procedures.

Review disciplinary and grievance policies and templates

Employers should consider reviewing their existing disciplinary and grievance policies and templates.

In particular, disciplinary invitation letters may need to record the informal steps that have already been taken, or explain why informal resolution was not appropriate.

Employers should also review their suspension practices and consider whether suspension is being used only where necessary and proportionate.

Consider reasonable adjustments

Although the Draft does not create the underlying Equality Act obligations, it provides a clear reminder that accessibility should be considered throughout disciplinary and grievance procedures.

Employers should consider the individual needs of workers and provide appropriate support and reasonable adjustments where required.

What does the new ACAS Code mean for employers?

If adopted following consultation, the Draft could have a significant impact on how employers approach disciplinary and grievance procedures.

The proposed changes place a much stronger emphasis on:

• early and informal resolution;
• constructive conversations;
• proportionate processes;
• appropriate use of suspension; and
• accessibility and reasonable adjustments.

For employers, this means that now may be a good time to review existing procedures and ensure managers are equipped to deal with workplace concerns effectively.

The consultation remains open until 23 September 2026, so the final version of the Code may differ from the current Draft.

If you are an employer and would like advice or support in relation to disciplinary or grievance procedures, or how the proposed changes may affect your organisation, our employment team at Attwells Solicitors can help.