On 30 July 2026, ACAS launched a consultation on a draft revised version of its statutory Code of Practice on Disciplinary and Grievance Procedures. If implemented, this will represent the first comprehensive update to the Code since 2009 and could have a significant impact on how employers manage disciplinary and grievance issues in the workplace.
Whilst the existing Code has long provided the framework for handling workplace disputes fairly, the proposed revisions introduce a number of important changes designed to reflect modern working practices and encourage earlier, less formal resolution of workplace concerns.
Why Does the Code Matter?
Although a failure to follow the ACAS Code does not automatically give rise to legal liability, Employment Tribunals must take it into account when considering relevant claims. Crucially, where an employer or employee has unreasonably failed to follow the Code, a Tribunal may increase or reduce compensation by up to 25%. This is particularly significant given the forthcoming employment law reforms and the proposed removal of the compensation cap for unfair dismissal claims from January 2027. As compensation awards increase, so too does the potential financial impact of failing to comply with statutory guidance.
Key Changes Proposed by ACAS
A Wider Focus on “Workers”
One of the most notable changes is the terminology used throughout the draft Code. ACAS proposes referring to “workers” rather than simply “employees”, reflecting its view that the principles of good practice should apply across a broader workforce. Whilst the Tribunal’s power to increase compensation by up to 25% would remain limited to employees, employers may increasingly be expected to apply consistent standards to all categories of staff.
Greater Emphasis on Informal Resolution
Perhaps the most significant practical change is the introduction of dedicated sections dealing with informal resolution. The current Code focuses primarily on formal disciplinary and grievance procedures. By contrast, the draft Code actively encourages parties to address concerns informally wherever possible and at the earliest opportunity. This means failure to attempt informal resolution could, for the first time, factor into the 25% uplift in compensation.
Examples of informal resolution could include:
- Informal discussions between managers and workers.
- Resolution through trade union representatives.
- Discussions facilitated by employee representatives.
Importantly, the draft Code makes clear that an informal conversation should never, by itself, result in formal disciplinary action. The draft also proposes that disciplinary invitation letters should explain what attempts have been made to resolve the issue informally, or why no such attempts were appropriate. This may require many employers to review existing templates and policies. That said, ACAS acknowledges that some issues, particularly allegations of gross misconduct, will inevitably require a formal process from the outset.
Increased Focus on Equality Act Obligations
The revised Code places a much stronger emphasis on employers’ obligations under the Equality Act 2010. Employers are reminded of their duty to make reasonable adjustments for disabled workers and provided with practical examples, including:
- Ensuring meeting venues are accessible.
- Providing documents in alternative formats where required.
- Allowing a support worker to attend meetings in appropriate circumstances.
Whilst these obligations already exist in law, incorporating them directly into the statutory Code is likely to increase scrutiny of employers’ decision-making during disciplinary and grievance processes.
Clearer Guidance on Suspension
Suspension remains a high-risk area for employers and one that has generated increasing judicial scrutiny in recent years. The existing Code provides only limited guidance. The draft Code, however, adopts a far more structured approach, emphasising that suspension should only be used where genuinely necessary and in limited circumstances.
Examples include situations where suspension is required to:
- Protect the integrity of an investigation.
- Safeguard customers, clients or business interests.
- Protect colleagues.
- Protect the individual under investigation.
- Comply with legal or regulatory requirements.
The draft also includes additional guidance on how suspension should be communicated to employees, reinforcing the principle that suspension is not a disciplinary penalty. For employers, this means suspension decisions are likely to face greater examination from employees, trade unions and, ultimately, Employment Tribunals.
Tackling Lengthy and Complex Grievances
ACAS has recognised a growing trend towards lengthy and highly detailed grievances, which can often delay resolution and increase workplace tensions.
To address this, the draft Code encourages workers to submit concise written grievances explaining:
- The nature of their concern.
- The outcome they seek.
- Any informal steps already taken.
At the same time, employers are reminded that workers should be given opportunities to provide additional information as matters progress. The aim appears to be encouraging a more accessible and practical approach to grievance handling whilst avoiding unnecessarily complex documents.
Changes to Accompaniment Rights
The draft Code provides greater clarity around a worker’s right to be accompanied. Whilst there remains no statutory right to accompaniment during investigation meetings or informal discussions, ACAS suggests it may be appropriate in certain circumstances, particularly where necessary to avoid discrimination. The draft also reflects recent case law by acknowledging that postponements longer than the traditional five working days may sometimes be reasonable, particularly where a dismissal outcome is possible and additional delay would not be excessive.
Encouraging Mediation and Facilitated Discussions
For the first time, the draft Code includes a dedicated section on mediation and facilitated conversations. Employers are encouraged to consider these options where appropriate, particularly in workplace relationship disputes or grievances involving communication breakdowns. Where mediation is agreed during a formal disciplinary or grievance process, the draft Code proposes that the formal process should be paused while mediation takes place. Although mediation will not be suitable in every case, ACAS clearly views it as an important tool for resolving disputes before positions become entrenched.
What Should Employers Be Doing Now?
The consultation remains open until 23 September 2026, and ACAS has invited feedback on all aspects of the draft. The draft Code is not yet law and may change following consultation. However, it provides a clear indication of the direction of travel.
Employers should begin considering how these proposed changes could affect their disciplinary and grievance procedures, template documentation and management training programmes. Organisations that wait until the final version is implemented may find themselves playing catch-up. As a failure to comply with the Code may result in an uplift of 25% to compensation, it is important that employers ensure that managers understand and follow fair workplace procedures in line with the Code.