By Louise Bloomfield & Sara Meyer
|Published 31 July 2026
On 30 July 2026, ACAS launched a consultation on an updated draft of its statutory Code of Practice on Disciplinary and Grievance Procedures (the Code). This will be the first full revision of the Code since 2009, and the new draft proposes significant amendments.
The existing Code sets out principles-based guidance for disciplinary and grievance procedures that employers and employees are expected to follow. A failure to follow the Code does not, in itself, make a person or organisation liable to proceedings. However, employment tribunals must take the Code into account in relevant cases. In certain claims, including unfair dismissal, an employment tribunal may increase or reduce an employee's compensation by up to 25% where there has been an unreasonable failure to follow the Code.
The Code is accompanied by non-statutory guidance on disciplinary and grievance procedures, which sets out additional details on the law and good practice. This guidance will also be reviewed and updated to ensure it is consistent with any revisions to the Code.
The consultation invites comments on all aspects of the draft Code, but asks in particular for views on whether the draft strikes the correct balance on certain key issues. These include:
The consultation notes that ACAS considers it good practice for organisations to follow the Code in relation to both workers and employees. The draft Code therefore uses the term "worker" throughout (so capturing broader elements of the workforce), except where the status of "employee" is intended. The consultation makes clear, however, that employment tribunals' power to uplift compensation will still only apply to employees.
As in the existing Code, the draft Code notes that it may not always be practicable for employers to take all of the steps in the Code and acknowledges that employment tribunals will take an employer's size and resources into account in this regard.
The draft Code also expressly refers to other legal requirements that may need to be applied alongside the Code, citing as an example the UK Market Abuse Regulation which may require market-sensitive announcements to be made in accordance with particular procedures. It specifies that the Code should always be followed "to the extent that is reasonably possible" in such cases.
The draft Code states that employers must meet their obligations under the Equality Act 2010. It specifically calls out the duty to make reasonable adjustments for workers with a disability, and provides examples of adaptations that may be required, such as ensuring a meeting venue is physically accessible, providing documents in an accessible format, and allowing a worker to bring a support worker with knowledge of their disability to a meeting (in addition to the statutory right to be accompanied by a colleague or trade union representative).
The existing Code focuses on formal disciplinary and grievance procedures, only referencing informal resolution briefly in the Foreword (which does not have statutory status). By contrast, the draft Code includes new sections on "Resolving employer concerns at work informally" and "Handling worker concerns informally".
These sections highlight the benefits of addressing issues early and informally, and suggest various steps that the parties could take. For example the draft Code suggests that concerns might be resolved informally via a trade union or worker representative. It also clarifies that an informal conversation should never by itself result in formal disciplinary action.
Interestingly, the guidance on what information should be provided in a written invitation to a formal disciplinary meeting includes a new requirement to state what steps have been taken to resolve the concern informally or the reason why none have been taken. This is clearly intended to encourage employers to consider and use informal means of resolution wherever possible. The proposal therefore raises questions about how much evidence of informal resolution will be expected before formal action can commence, and also will require employers to update policies and template letters to reinforce this.
However, the draft Code does acknowledge that an informal approach will not always be appropriate, and that concerns about gross misconduct should be handled using a formal disciplinary procedure.
With regard to suspension during a disciplinary investigation, the existing Code states only that if this is considered necessary, it should be as brief as possible, kept under review, and made clear that it is not a disciplinary sanction.
The draft Code includes more detailed guidance which explains that suspension should only be used in limited circumstances, for example if it is necessary to comply with a legal requirement or if the employer reasonably believes it would protect:
The draft Code also provides guidance on good practice when communicating a suspension decision to the worker. Whilst this largely reflects the direction of existing case law, placing it expressly within the statutory Code is likely to increase scrutiny of suspension decisions and may lead to greater challenge from employees and trade unions (particularly in view of forthcoming access rights).
The consultation notes that there is a growing trend towards unnecessarily long and complex written grievances, which can cause heightened tensions and give rise to delays in resolution. The draft Code seeks to address this by encouraging workers to provide a short, clear written explanation of their concern, which explains the nature of the issue, how the worker would like it to be resolved, and what steps have been taken to resolve the concern informally (or the reason why none have been taken). The draft Code emphasises that the employer should allow the worker an opportunity to provide more information later if needed.
Under section 10 of the Employment Relations Act 1999, workers who make a reasonable request have a statutory right to be accompanied by a colleague or trade union representative at a formal disciplinary or grievance meeting.
The draft Code explains when the right arises and makes clear that there is no statutory right to be accompanied at informal meetings or investigation meetings. However, it notes that this may be allowed under the employer's own procedure or to help avoid unlawful discrimination. It also states that if a worker requests to be accompanied to a meeting where the statutory right does not apply, it is good practice for the employer to consider this request.
Where a worker's chosen companion is unavailable at the proposed meeting time, the usual position is that the meeting should be postponed for up to five working days to allow the companion to attend. However, to reflect the caselaw in this area, the draft Code specifies that it may be reasonable to allow more than five working days for a re-arranged meeting in some cases, especially those that might result in dismissal, provided this does not cause unreasonable delay.
The draft Code includes a new section which encourages the use of mediation or facilitated conversations to resolve concerns in appropriate cases. Where the parties agree to use mediation or a facilitated conversation during a formal disciplinary or grievance process, the draft Code specifies that the process should be paused while the mediation / facilitated conversation takes place.
The draft Code acknowledges that these forms of resolution will not always be appropriate, and that they may not be available in every organisation, but suggests that it is good practice to offer them in appropriate cases where possible.
The consultation will run until 23 September 2026. ACAS may revise the draft Code based on any feedback received. It will then present the updated draft to the government for approval. Once the government approves the draft Code, it will be laid before Parliament. ACAS has not specified when it expects the draft Code to take effect and the process is likely to take some time.
As noted above, unreasonable failure to comply with the Code can result in an uplift of up to 25% of an employee's compensation. As compensation for unfair dismissal will be uncapped from 1 January 2027, uplifts have the potential to be significant going forwards. The expansion of the Code to cover informal resolution, reasonable adjustments, and more detailed provisions on suspension, for example, therefore adds to the potential risk for employers when dealing with disciplinary and grievance issues. Employers are encouraged to review the draft Code carefully and contribute their views to the consultation, and consider issues such as:
Once the draft Code is finalised, employers will need to review and update their disciplinary and grievance policies to ensure they are consistent with it. They will also need to train line managers and HR on any new procedural requirements and DACB can support with that.
Acas consultation: draft Code of Practice on disciplinary and grievance procedures
Draft Code of Practice on disciplinary and grievance procedures
