Acas has published a draft revised Code of Practice on Disciplinary and Grievance Procedures for consultation, marking the first comprehensive overhaul of the Code since 2009.
The Acas Code plays a central role in workplace disciplinary and grievance processes. Employment tribunals can increase or decrease compensation awards by up to 25% where there has been an unreasonable failure to follow the Code. As a result, any changes are likely to have significant implications for employers and HR professionals.
While the consultation remains open until 23 September 2026, and the current Code continues to apply for now, the draft provides a clear indication of the direction of travel and gives employers an opportunity to start preparing.
Why does the Acas Code matter?
The Acas Code sets out the principles employers should follow when dealing with disciplinary and grievance issues in the workplace. Although it is not legislation, it is highly influential and is routinely considered by employment tribunals when assessing whether workplace procedures have been handled fairly.
The draft revisions place greater emphasis on early resolution, documented decision-making, careful use of suspension and ensuring workplace procedures are accessible and fair for all workers.
Informal Resolution Becomes Part of the Statutory Code
One of the most notable changes is the increased focus on resolving issues informally wherever possible.
Under the current Acas Code, informal resolution is mentioned only in the Foreword, which does not form part of the statutory Code itself. The draft brings informal resolution directly into the Code, making it a formal consideration for employers.
This means employment tribunals could potentially take into account an employer’s unreasonable failure to consider informal resolution when deciding whether to adjust an award.
What does this mean for employers?
Before launching a formal disciplinary or grievance process, employers should:
- Consider whether an informal approach may be appropriate;
- Assess whether the issue could be resolved through discussion or facilitated conversations;
- Record the reasons for proceeding informally or formally.
Taking and documenting these steps may become an important part of demonstrating procedural fairness.
Formal Letters Must Refer to Informal Steps
The proposed Code goes a step further by requiring disciplinary invitation letters and grievance outcome letters to explain:
- What informal steps have already been taken; or
- Why informal resolution was not appropriate in the circumstances.
This represents a significant shift from informal resolution being viewed as best practice to becoming a documented stage within the process itself.
Action point for HR teams
Employers should consider reviewing:
- Disciplinary invitation templates;
- Grievance correspondence;
- Process checklists; and
- Internal guidance documents.
Template documents may need updating to ensure they meet any new requirements once the revised Code comes into force.
Suspension Must Be Necessary
Another important development is the introduction of a clear necessity test for suspension.
The draft reflects an increasingly accepted principle that suspension should not be treated as a default or neutral act. Instead, it should only be used where genuinely necessary and after alternative options have been considered.
The draft encourages employers to carefully assess each situation rather than automatically suspending an individual while an investigation is carried out.
Practical considerations
Before suspending a worker, employers should consider:
- Whether alternative duties are available;
- Temporary changes to reporting lines;
- Home working arrangements;
- Restricted access to systems or premises; and
- Any other proportionate alternatives.
If suspension is required, employers should clearly document why it is necessary in the particular circumstances.
From “Employee” to “Worker”
The draft Code generally replaces references to employees with the wider term workers.
This change reflects an intention for the guidance to apply across a broader section of the workforce.
However, employers should be aware that the ability of an employment tribunal to adjust compensation awards under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992 remains linked to claims brought by employees.
Why this matters
Employers may need to apply the principles in the Code consistently across a wider range of individuals, while recognising that the statutory uplift provisions remain more limited in scope.
HR teams should therefore distinguish between:
- The wider practical application of the Code; and
- The legal circumstances in which compensation adjustments can be made by a tribunal.
Greater Emphasis on Adjustments, Training and Mediation
The draft also introduces new guidance in several important areas.
Reasonable Adjustments
There is increased emphasis on ensuring disciplinary and grievance processes are accessible for workers who may require adjustments.
This could include adjustments to meetings, communications, timescales or other procedural aspects.
Manager Training
The draft highlights the importance of ensuring managers who handle disciplinary and grievance matters are appropriately trained.
This reflects the reality that procedural mistakes often occur where managers are expected to navigate complex employment issues without sufficient support.
Mediation and Facilitated Conversations
The proposed Code gives greater prominence to mediation and other facilitated approaches to dispute resolution.
In some cases, employers may be encouraged to pause a formal process to allow mediation to take place where this may help achieve a resolution.
What Should Employers Be Doing Now?
The consultation closes on 23 September 2026, and the draft Code will not take effect unless a final version is approved and brought into force.
In the meantime, the current Acas Code remains the applicable guidance. However, employers do not need to wait before taking practical steps to prepare.
Now is a good time to:
- Review disciplinary and grievance policies
- Update template letters and process documentation
- Review suspension practices and decision-making records
- Ensure managers receive appropriate training
- Consider how mediation and informal resolution fit within existing procedures
- Review how reasonable adjustments are identified and implemented during workplace processes
Looking Ahead
The proposed revisions represent the most significant update to the Acas Code in more than 15 years. They signal a clear move towards earlier resolution of workplace issues, stronger procedural safeguards and greater accountability in decision-making.
While the final version may change following consultation, employers who begin reviewing their policies, templates and training now will be well placed to respond when the revised Code is eventually introduced.
If you would like advice on reviewing your disciplinary and grievance procedures, updating documentation or training managers on best practice, please contact our Employment team.
