ACAS has commenced a consultation on whether to update it’s draft Code of Practice on Disciplinary and Grievance Procedures in what could be a substantial shake up of the current rules.
The current version of the Code of Practice has been in place since 2009 and a failure to comply with it by employers can result in a 25% uplift in compensation.
The proposed changes include;
- An expectation that informal resolution will be attempted and subsequent letters must state what informal steps were taken or if none, why
- A new necessity test for suspending employees, recognising existing case law that suspension is not a ‘neutral act’
- Additional sections have been added in relation to reasonable adjustments, manager training and mediation/facilitated conversations.
The new draft Code also refers throughout to ‘workers’ rather than ‘employees’.
The consultation runs until 23 September 2026.
These changes, and in particular the expectation of informal resolution and the risk of up to 25% additional compensation if an employer does not attempt this, could mark a major change in how disciplinary and grievance matters are handled in the future. We are seeing increasing amounts of disciplinary and grievance processes deriving from economic uncertainty and the uncertainty that is creating for people’s employment. We are also regularly instructed to assist in extremely lengthy AI generated ‘grievances’ often running to dozens of pages of largely repetitive nonsense rather than the actual issues the employee is concerned about. These changes to the ACAS Code, if implemented, add further risk to employers dealing with these processes.
If you are involved in a disciplinary or grievance process please speak with one of our specialist team of employment lawyers on 0345 646 0406 or fill in our online enquiry form and will be more than happy to assist.