Talk first, formal action later: Acas unveils new draft code on disciplinary and grievance procedures

Background

Recent research conducted by Acas suggests that formal disciplinary procedures cost UK employers more than £2.3 billion each year. Acas wants to reduce this. 

The proposed changes to the Code show a clear move towards resolving workplace concerns earlier, placing greater focus on fairness and reasonableness, and giving employers more practical guidance about how to handle disciplinary and grievance processes.

Informal resolution moves centre stage

One of the main changes is that informal resolution is brought into the main part of the statutory Code. The current Code already recognises the value of informal discussions, but the draft includes a new section on how to deal with workers’ concerns informally. It encourages employers and workers to raise and address issues early, before they escalate.

Another practical change for employers is the need to record any attempts to resolve the issue informally before moving to a formal process. Acas suggest that when an employer decides to hold a formal disciplinary meeting, the letter to the employee should set out what steps have already been taken to resolve the matter informally, or explain why no informal steps were taken, in addition to providing the usual information. 

Workers raising a formal grievance are also expected to explain what informal steps they have taken. If they haven't attempted this, they need to explain why. 

New focus on fairness, discrimination and training

The draft Code includes new sections on manager training, workplace policies and avoiding unlawful discrimination. Employers are reminded of their duties under the Equality Act 2010, including the need to make reasonable adjustments where appropriate and to make sure disciplinary and grievance processes are accessible and fair.

It suggests this could include using accessible meeting rooms, providing documents in different formats, arranging interpreters or offering extra support for disabled workers. Acas also stresses the importance of training managers and representatives so they can help resolve concerns consistently and effectively.

Revised approach to suspension

The draft Code gives more detailed guidance on workplace suspension. Suspension should only be used where it is necessary, for example to protect an investigation, safeguard colleagues or protect business interests. It should not be treated as a routine part of disciplinary action.

Acas says any suspension should be as short as possible, reviewed regularly and communicated carefully. Employers should explain why the worker is being suspended and make clear that suspension is not, in itself, disciplinary action.

Wider scope and enhanced accompaniment rights

In the draft Code, the term “worker” replaces “employee”. This suggests the revised Code may apply more broadly than the current version. Acas is also asking for views on whether this change in wording should be made permanent and what its practical impact might be.

Acas has also expanded its guidance on the right to be accompanied. The legal right still applies to formal disciplinary and grievance meetings, but the draft says employers should consider requests to be accompanied in other situations too. 

Mediation encouraged

The draft Code includes a much fuller section on mediation and facilitated conversations. Acas encourages employers and workers to consider these options at different stages of a dispute, particularly where working relationships have become difficult.

If mediation is agreed during a formal disciplinary or grievance process, the draft Code says the formal process should usually be paused while attempts are made to resolve the issue.

Potential impact

The Acas Code is a statutory code issued under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992). While it does not impose a stand-alone legal obligation on employers or employees to comply with its provisions, it sets out minimum standards of reasonable behaviour for handling disciplinary and grievance situations in the workplace. The Code is admissible in evidence in employment tribunal proceedings and must be taken into account where relevant. 

Non-compliance with the Acas Code can have significant implications in tribunal proceedings. If an employer or employee unreasonably fails to follow the Code, a tribunal has the discretion to adjust any compensation awarded by up to 25%.

What employers should do now

If approved by the Secretary of State, the revised Code will replace the current version and could significantly affect workplace procedures. Once that happens, employers will need to review their disciplinary and grievance policies, train managers on informal resolution, and think about how mediation and reasonable adjustments are built into their processes.

The consultation closes at 11.59pm on 23 September 2026.