Acas Publishes Revised Draft Code of Practice on Disciplinary and Grievance Procedures: What Employers Need to Know

Acas recently published a revised draft Code of Practice on Disciplinary and Grievance Procedures on 30 July, together with a consultation, which closed on 23 September 2026. That draft will now be presented to the government and, if approved, laid before Parliament. There is no confirmed implementation date at present, and the final version may change following consideration by government and Parliament.

Although the Code is not yet in force, the proposed changes could have important implications for employers. Compared with the current Code, the revised draft places much greater emphasis on resolving workplace concerns at an early stage through informal discussions, mediation and facilitated conversations, before issues escalate into formal disciplinary or grievance procedures.

The Code provides employers, workers and representatives with principles-based guidance on handling disciplinary and grievance situations at work. It carries significant weight. Employment tribunals must take the Code into account in relevant cases and can, in some types of claims, increase or reduce an award by up to 25% for unreasonable failure to follow the Code by an employer or employee.

The proposals are likely to be particularly relevant for HR professionals, business owners and line managers who are responsible for managing employee relations and workplace concerns. If adopted, the revised draft Code would make significant changes to the way employers handle disciplinary matters and grievances with a new focus on early and informal resolution of concerns.

What are the key proposals?

Focus on informal resolution

There is a new expectation that employers and workers will attempt to resolve concerns informally before escalating to formal procedures. Failure to do will give tribunals the power to increase or reduce the amount of compensation awarded by up to 25%.

Workers submitting formal grievances, and employers inviting workers to attend formal disciplinary meetings, must set out in their letter the steps that have been taken to resolve the matter informally. If no such steps have been taken, the letter must set out the reasons for this.

Mediation and facilitated conversations

Mediation and facilitated conversations have been given much greater importance with a new section encouraging the use of such processes where possible. It is noted that this may not be possible for small businesses with limited resources.

Clearer suspension rules

There is a new section setting out when suspension will be appropriate. It should only be used in limited circumstances and should not be treated as a default first step. Employers will need to demonstrate why suspension was necessary and keep it under regular review.

Reasonable adjustments

The revised draft Code expressly references the Equality Act 2010 and the duty to make reasonable adjustments for disabled workers throughout the disciplinary and grievance process.

Broader scope

The draft refers to “workers” rather than “employees” throughout, as Acas considers it good practice for employers to follow the Code in relation to both workers and employees. However, the uplift for unreasonable failure to comply remains only available in the case of employees

Right to be accompanied

The statutory right to be accompanied is unchanged, but the draft encourages employers to consider allowing companions at informal meetings where this may help resolve issues.

With reference to reasonable adjustments, the revised draft Code states that, in some circumstances, processes may need to be adapted, for example by allowing the worker to bring a support worker who has knowledge of their disability, or an interpreter if there is a language barrier.

Artificial intelligence

Although the draft Code itself does not address AI, the consultation invites views on the benefits, risks and practical implications of AI use in disciplinary and grievance processes and whether any issues should be addressed in the revised Code.

What does this mean for employers?

If adopted, the proposals would represent a meaningful shift in how workplace disputes are expected to be managed.

The emphasis on informal resolution, in particular, will require a cultural shift in many organisations, moving away from a reflex towards formal process and towards earlier, more open conversations about workplace concerns. A failure by either party to genuinely seek informal resolution could impact on the compensation awarded by a tribunal.

How employers can prepare now

Although the revised Code is not yet in force, employers should start considering how the proposed changes could affect existing workplace procedures.

Employers may wish to consider:

• reviewing disciplinary and grievance policies to assess whether they place sufficient emphasis on informal resolution;
• ensuring managers understand when informal conversations, mediation or other early interventions may be appropriate;
• considering how attempts to resolve concerns informally will be recorded and evidenced;
• reviewing processes for suspension to ensure decisions are properly justified and regularly monitored;
• checking that disciplinary and grievance procedures appropriately address reasonable adjustments for disabled workers;
• assessing whether mediation services or facilitated conversations could be used more effectively to resolve workplace disputes;
• reviewing any use of artificial intelligence within HR processes and considering appropriate governance and oversight arrangements.

Although the final version of the Code and the implementation timetable remain uncertain, employers may benefit from reviewing their current approach now. If you would like advice on disciplinary and grievance procedures, workplace investigations or preparing for the proposed changes, our employment team would be pleased to assist.

This content is provided for general informational purposes only and does not constitute legal advice. It is not intended to address the circumstances of any individual or entity, nor should it be relied upon as a substitute for specific advice from a qualified solicitor. The information reflects the legal position as at the date specified and may be subject to change. If you require advice on a specific matter, please contact us directly.