ACAS Draft Disciplinary and Grievance Code: Key Changes Employers Need to Know

ACAS has produced a draft of its new code of practice on disciplinary and grievance procedures, which is open to consultation until 23^rd September 2026. After that the final code will be put before Parliament for approval and it is likely to come into force in late 2026 or early 2027. The final code is unlikely to be substantially different from the draft.

This ACAS code of practice is important as it sets out guidance on holding disciplinaries and individual grievances, ACAS estimate the costs of disciplinaries and grievances to employers as £2.36 billion a year, and rising. If either an employer or employee unreasonably fails to comply with a provision of the code, then an Employment Tribunal may increase (most) awards against an employer by up to 25% or if the employee is at fault, reduce (most) awards by as much as 25%, the 'ACAS adjustment'. Note that it does not apply to redundancy dismissals or to the non-renewal of a fixed-term contract.

The new code has been substantially re-written for the first time since 2009, and has gone up from 47 to 95 paragraphs. Most of the provisions of the code are 'aspirational' rather than mandatory, and whilst it refers to 'workers' rather than 'employees', the adjustments to awards mentioned above only apply where an 'employee' brings a Tribunal claim, not a 'worker' if that worker isn't an 'employee'. There's no claim as such for not following the code, but not following it isn't a great starting point for either employers or workers.

The broad points from the draft new code are:

1. A greater emphasis on informal resolution of disputes and avoiding escalation, so if parties don't resolve matters informally and escalate matters, whether by raising an unnecessary grievance or holding an unnecessary disciplinary meeting, and this leads to a claim, there's a risk of a final award being adjusted.
2. The code specifically reminds employers to avoid unlawful discrimination, e.g. by making reasonable adjustments, but also indicating that workers should discuss their needs for adjustments with the employer.
3. A greater emphasis on the right to be accompanied at formal hearings (and specifying that it does not apply at, say, an investigation meeting), but of course, where a companion may be a reasonable adjustment for a disabled worker at an investigation meeting, it emphasises the importance of ensuring that those adjustments are made. There would of course be scope for a separate claim from any discrimination in such arrangements.
4. For disciplinary and grievance hearings, the letters inviting a worker to a disciplinary or from a worker raising a grievance should state what steps have been taken informally to resolve matters, or why none have been taken. This is a significant change as it in effect creates a procedural hoop to jump through to avoid an adjustment to an award.
5. In disciplinary hearings, written evidence (e.g. statements) should be included with the invitation to the hearing, and employers and workers should give advance notice of any witnesses they wish to call.
6. For grievances, the code suggests starting with a 'short, clear written explanation' – a nod to the issues that AI is generating with some grievances perhaps, and there is also a pointer to workers to discuss concerns with someone not directly involved, such as a colleague, trade union, or employee representative, to gain a different perspective and to help them articulate their concerns clearly.
7. The draft code has a strong steer against disciplinary suspension except in cases where it is legally required or it is done reasonably to protect the investigation, the employer's business, other staff or the employee suspended. This is a useful reminder that suspension is fraught with risks for employers.
8. The code encourages employers to have written policies and procedures for managing conduct and performance, and to provide training and support to managers.
9. A major change is the suggestion of resolving disputes using mediation or facilitated conversations with an accredited mediator or trained facilitator, who may be external or a trained, independent individual from within the employer's organisation, and pausing formal procedures if the parties agree to that process. The code recognises that this will not suit every situation or every employer.

Chattertons’ Employment Team will ensure that clients receive full and clear advice on the changes introduced by the new code when it comes into force.

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