Acas consults on changes to its disciplinary and grievance Code of Practice

Acas has launched a consultation on a new draft Code of Practice on disciplinary and grievance procedures.

For employers, the proposed changes are significant. They place greater responsibility on managers to identify and resolve workplace issues at an early stage, while increasing scrutiny of how organisations handle conflict before commencing formal processes.

What are the key proposed changes?

Informal resolution first

Perhaps the most significant change is the recognition of informal resolution as the preferred first step when workplace concerns arise.

Under the current Code, informal resolution is mentioned but sits mostly outside the framework. The draft Code includes informal discussions within the disciplinary and grievance process itself and encourages employers and workers to attempt early resolution before commencing formal procedures, if appropriate.

For employers, this may include:

• Informal conversations about conduct or performance concerns.
• Identifying training or support needs.
• Considering reasonable adjustments where relevant.
• Exploring mediation or facilitated discussions.
• Clarifying expectations before moving to formal action.

Importantly, employers should be able to demonstrate that they have considered whether informal resolution is appropriate in the circumstances.  Employment Tribunals may take a failure to engage in informal resolution into account when considering whether there has been unreasonable non-compliance with the Code.

This change is likely to place greater emphasis on managerial judgement, record-keeping and early intervention, particularly where workplace tensions emerge before a formal grievance is raised.

Focus on mediation

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

Acas encourages employers to consider whether an independent third party could help resolve disputes before formal procedures begin. While mediation will not be appropriate in every case, its inclusion highlights the increasing emphasis being placed on conflict resolution.

It’s worth noting that mediation may offer a cost-effective way of resolving workplace issues before relationships break down and formal grievances, disciplinary processes or tribunal claims arise.

Guidance on suspension

The consultation also introduces clearer guidance on the use of suspension.

The draft Code emphasises that suspension should not be a default response and should only be considered where genuinely necessary. Examples include situations where there is a risk to:

• The integrity of an investigation.
• Business interests or customers.
• Other staff.
• The person under investigation.

This serves as a reminder that suspension should be a carefully considered measure rather than a routine administrative step.

Increased emphasis on training

Another development is the expectation that employers provide appropriate training to managers responsible for handling disciplinary and grievance matters.

The draft Code highlights the importance of equipping managers with the skills needed to identify workplace conflict early, conduct informal discussions effectively and manage formal processes fairly.

Broader use of the term “workers”

The draft Code replaces many references to “employees” with “workers”, reflecting Acas’ view that the principles of good workplace practice should extend beyond employer/employee relationships.

While the legal obligations attaching to disciplinary and grievance procedures will not necessarily change, employers with contingent workforces, casual staff or other worker arrangements may wish to review how these processes operate in practice.

Why does the consultation matter?

The Acas Code is not legally binding in its own right. However, Employment Tribunals will take it into account when determining relevant claims.

Where a Tribunal finds that an employer has unreasonably failed to comply with the Code, compensation can be increased by up to 25%. Equally, awards can be reduced by up to 25% where an employee has unreasonably failed to follow the Code.

As the Employment Rights Act 2025 is expected to widen access to unfair dismissal claims, compliance with the Code is likely to become increasingly important. With the statutory cap on compensatory awards being removed (from 1 January 2027), employers will also face greater financial exposure.

What should employers be doing now?

Whilst the detail may change before the final Code is published, the direction of travel is clear. Employers should therefore consider the following steps now:

• Training: Ensure managers have the confidence and skills to address workplace issues early and effectively before they escalate into formal processes.
• Informal resolution: The draft Code reinforces the importance of early, informal engagement. Employers should consider whether their culture and management practices support this approach.
• Policy reviews: While it may be too early to revise policies, employers should assess whether their disciplinary, grievance and suspension processes are fit for purpose and aligned with the draft Code’s direction of travel.
• Mediation: Assess whether mediation and facilitated conversations could be used more effectively to resolve workplace issues before they escalate into formal disputes.

For many employers, the proposed changes are less about rewriting policies and more about embedding a culture of early intervention, effective communication and confident management decision-making.

The consultation closes on 23 September 2026 and can be viewed here, You may wish to consider submitting feedback before the final Code is published.

We will continue to monitor developments and will provide further updates once the final version of the Code is published. If you would like to discuss how the proposed changes could affect your organisation’s disciplinary or grievance procedures, please contact a member of our Employment team.