Key Advice After The Acas Consultation On The Code of Practice On Disciplinary and Grievance Procedures

On 30 July 2026, Acas launched a consultation on a substantially revised Code of Practice on Disciplinary and Grievance Procedures, representing the most significant overhaul of the Code since its introduction in 2009.

The consultation closes on 23 September 2026 and proposes a fundamental shift in how workplace concerns should be managed. Rather than focusing predominantly on formal disciplinary and grievance processes, the draft Code places early intervention, informal resolution and conflict prevention at its heart.

Whilst the Acas Code is not legally binding, an unreasonable failure to comply can result in a tribunal increasing or reducing compensation by up to 25%, making the proposed changes highly significant for employers.

Why now?

Acas recognise that workplace conflict continues to have a significant impact on organisations and they have stated that the consultation is driven by a desire to encourage employers and workers to resolve concerns at an earlier stage and using more effective measures before they escalate into grievances, disciplinaries or litigation.

Acas believes that early resolution can save organisations substantial time, cost and management resource while simultaneously improving workplace relationships.

The revised draft Code reflects a broader cultural change in workplaces, recognising that many issues can be addressed without formal intervention and through constructive conversations.

What are the key impacts?

1. Expectation to resolve issues informally

Employers would be expected to consider informal resolution before starting a formal disciplinary or grievance process, where appropriate. A failure to do so could be relevant when a tribunal assesses reasonableness of the parties.

Steps for employers to take:

Train managers to address concerns early and importantly, record the informal steps considered or taken.

2. Tribunal risk and potential compensation uplifts

Tribunals must take the statutory Acas Code into account. An unreasonable failure to comply with can result in compensation being increased or reduced by up to 25% in relevant claims. Including informal resolution within the Code is likely to increase scrutiny of an employer’s approach.

Steps for Employers to take: Review policies and decision-making processes to ensure any move directly to formal action can be justified (and is documented!)

3. Policy and template reviews

The key documents which may need updating are:-

• Disciplinary and grievance procedures
• Investigation and suspension procedures
• Template letters and outcome documents

Steps for employers to take:

Once the revised Code has been finalised, ensure documentation appropriately addresses informal resolution, mediation and equality considerations.

4. Increased management training requirements

The draft Code places great emphasis on communication, conflict resolution and early problem-solving.

Steps for employers to take:

Train managers in:

• Difficult conversations and conflict management
• Mediation awareness
• Fair investigations
• Reasonable adjustments

5. Mediation likely to become more common

The draft Code includes a dedicated section on mediation and facilitated conversations.

Steps for employers to take:

Consider mediation for relationship breakdowns, personality clashes and communication disputes before progressing to a formal grievance.

6. Tougher approach to suspension

Suspension should be necessary, justified and proportionate—not an automatic response to allegations.

Steps for employers to take:

In the event that an employee is suspended, be sure to record why suspension is necessary and document that suitable alternatives had been considered.

7. Greater focus on equality and reasonable adjustments

The draft Code emphasises the importance of avoiding discrimination and making reasonable adjustments during a process.

Steps for employers to take:

Consider and document:

• Adjustments to hearing arrangements
• Support for disabled workers
• Alternative communication methods
• Procedural flexibility

8. Not limited to employees

The draft Code refers to “workers” rather than “employees”, indicating that Acas expects fair procedures to apply more widely.

Steps for employers to take:

Consider the application of disciplinary and grievance standards to casual, bank and zero-hours workers, whilst taking into account the need to treat workers in a manner appropriate to their employment status.

A new focus on early and informal resolution

The proposed Acas Code requires employers to think differently about how workplace concerns are raised, managed and resolved and encourages early and informal intervention.

Employers that invest in manager capability, prioritise early resolution, document decision-making and update policies before the revised Code comes into force will be placing themselves in the best position in light of the upcoming changes.