Rethinking Workplace Disputes: Acas Proposes A Revised Code

Acas has published a revised draft code of practice on disciplinary and grievance procedures (draft code), together with a consultation. This is the first full revision of the code since 2009. The consultation closes on 23 September 2026. No date has been given for the final code coming into force.

Although it's still subject to consultation, the draft code is an important development for employers. Employment tribunals must take the code into account in relevant cases, including unfair dismissal and discrimination claims, and may increase or reduce compensation by up to 25% where there has been an unreasonable failure to comply with it.

The stated purpose of the consultation is to “start a conversation about how we can disagree better at work” and to promote earlier, more informal resolution of workplace concerns.

What are the key changes for employers?

Key points for employers to note from the draft code include:

• A shift in terminology from “employees” to “workers”, reflecting Acas’ view that it is good practice to follow the code when handling disciplinary and grievance processes involving workers as well as employees. However, the statutory uplift or reduction in compensation will still apply only in relevant claims brought by employees.

• A stronger emphasis on resolving concerns early and informally where possible. If the draft code is adopted, informal resolution would sit within the statutory code itself, which isn’t currently the case. This would mean that, for the first time, employment tribunals may consider whether reasonable steps were taken to resolve concerns informally before a formal process began. The draft code recognises that informal resolution won’t be appropriate in every case, particularly where the allegations are very serious, such as allegations of gross misconduct.

• Greater emphasis on avoiding unlawful discrimination. The draft code expressly refers to making reasonable adjustments for disabled workers, which may be relevant to meeting arrangements, timescales, communication methods, companions and the way in which evidence is gathered or considered.

• Additional guidance on suspension is also included. The draft code confirms that suspension should usually be considered only where it is necessary to comply with a legal requirement, or where an employer reasonably believes it’s needed to protect the investigation, the organisation, other staff or the person under investigation. Any suspension should be kept under review and should not be treated as a disciplinary sanction.

• Training and support are another key theme, with Acas encouraging employers to help managers, workers and representatives develop the skills and confidence needed to resolve workplace concerns constructively.

How could AI affect disciplinary and grievance procedures?

Although the use of AI isn’t explicitly addressed in the draft code, Acas is seeking views on what the code or supporting guidance should say about the growing use of AI in disciplinary and grievance processes. Some direction on this is much needed, in light of the increasing number of AI-generated grievances being received by employers.

What should employers do next?

The draft code may be amended following consideration of consultation feedback. However, if approved and implemented in its current form, it would represent a significant shift towards an expectation that workplace concerns are addressed at an earlier stage and, where appropriate, through more informal means. This is likely to influence the expectations of workers, employees and tribunals when disciplinary and grievance issues arise.

Employers should keep developments under close review and consider whether their current disciplinary and grievance policies and manager guidance would meet the standards proposed in the draft code. If the draft code is approved, employers should also consider how informal resolution is documented, when formal procedures are triggered, how reasonable adjustments are identified and recorded, and whether managers have sufficient training to handle workplace concerns consistently and constructively. Further updates to policies, procedures and manager training are likely to be required once the final code and any supporting guidance are published.