Acas Proposes Major Update to Disciplinary and Grievance Procedures. What Employers Need to Know

Acas has launched a public consultation on a draft revised Code of Practice on Disciplinary and Grievance Procedures, representing the first major update to the Code since 2009. The consultation forms part of Acas’ wider aim to improve workplace relationships and encourage the earlier resolution of workplace concerns before they escalate into formal disputes. 

According to Acas, formal disciplinary and grievance procedures cost UK employers an estimated £2.36 billion every year, with informal resolution costing significantly less. Research cited within the consultation also found that 44% of working-age adults in Great Britain experienced workplace conflict in the previous 12 months, highlighting the importance of effective dispute resolution mechanisms.

The consultation closes on Wednesday 23^rd September 2026.

A Shift Towards Early Resolution

The most significant theme running throughout the draft Code is a stronger emphasis on resolving workplace concerns informally wherever possible. Acas believes many workplace issues can be resolved more quickly, effectively and cost-efficiently through early conversations rather than formal procedures.

The draft Code encourages employers and workers to address concerns promptly and seek informal solutions before matters escalate into disciplinary or grievance proceedings. Importantly, Acas is proposing that this guidance becomes part of the statutory Code itself, meaning Employment Tribunals would be able to take an employer’s approach to informal resolution into account when considering relevant cases. 

Key Proposed Changes

Greater Emphasis on Informal Resolution

The draft Code introduces dedicated guidance on resolving concerns informally, covering both employer concerns about conduct or performance and employee concerns raised through grievances. Acas wants organisations to view informal resolution as the starting point rather than automatically progressing to formal procedures.

New Expectations Around Fairness and Timeliness

Updated principles within the Code emphasise that employers and workers should:

• Seek to resolve concerns at an early stage.
• Prevent unnecessary escalation of workplace conflict.
• Deal with issues promptly.
• Avoid unreasonable delays in conversations, meetings and decision-making.

New Requirements for Formal Documentation

The consultation proposes that disciplinary and grievance correspondence should explain any informal steps already taken and, where no informal action has been attempted, why that was considered inappropriate. This aims to demonstrate that informal options have been properly considered before formal action is taken.

Suspension as a Last Resort

The revised Code also introduces a stronger focus on the appropriate use of suspension, reinforcing that suspension should only be used where genuinely necessary and not as an automatic response to workplace concerns.

Broader Scope and Updated Language

Acas has reviewed the language used throughout the Code to reduce unnecessarily adversarial terminology and encourage more constructive dialogue. The draft places greater emphasis on “concerns” and workplace resolution rather than purely disciplinary action and formal grievances. It also replaces many references to “employees” with the broader term “workers”.

Greater Focus on Workplace Support

The draft Code contains additional guidance relating to:

• Mediation.
• Management training.
• Reasonable adjustments.
• Situations where formal procedures may be paused to facilitate resolution.

Why Does This Matter?

The Acas Code does not create legal rights in itself. However, Employment Tribunals must take the Code into account when considering relevant claims. In certain cases, a Tribunal can increase or decrease compensation by up to 25% where either an employer or employee has unreasonably failed to follow the Code.

For that reason alone, any changes to the Code are likely to have a significant impact on workplace practices.

What Could This Mean for Employers?

If the revised Code is adopted in its current form, employers may need to demonstrate much more clearly that informal resolution has been considered before formal proceedings commence.

In practice, this could mean:

• Managers Will Need Additional Training
  Managers may need increased confidence in handling difficult conversations, addressing conduct issues informally and resolving workplace tensions at an early stage.

• Stronger Record-Keeping May Be Required
  Employers may need to keep records of informal discussions and the steps taken to resolve concerns before escalating matters into formal procedures.

• Policies May Need Updating
  Disciplinary and grievance procedures should be reviewed to ensure they reflect the revised expectations around informal resolution, mediation and suspension.

• Greater Scrutiny in Tribunal Claims
  Where employers move quickly to formal disciplinary action without considering informal alternatives, this may be criticised by employees and scrutinised by Employment Tribunals.

What Could This Mean for Employees?

Employees may also benefit from greater opportunities to resolve concerns without immediately entering a formal process.

Potential advantages include:

• Earlier resolution of workplace disputes.
• Reduced stress associated with formal disciplinary and grievance procedures.
• Greater access to mediation and informal discussions.
• Improved communication between managers and staff.
• Faster outcomes where issues can be addressed collaboratively.

However, informal resolution will not be appropriate in every situation. Serious misconduct, safeguarding concerns, discrimination allegations and other serious workplace issues may still require formal investigation and action.

Looking Ahead

The proposed revisions reflect a broader shift towards preventing workplace conflict rather than simply managing it once it has escalated. While the consultation remains ongoing, the direction of travel is clear. Employers will increasingly be expected to demonstrate that they have actively explored informal resolution before invoking formal disciplinary or grievance procedures.

Now may be a good opportunity for organisations to review existing policies, train managers and assess whether current workplace procedures encourage the early and constructive resolution of concerns.

Need legal advice on disciplinary procedures, grievances or workplace investigations? Contact our Employment Law team for practical guidance on managing workplace issues and reducing the risk of litigation.