The government has launched a consultation on proposed updates to the Acas Code of Practice on disciplinary and grievance procedures. This is the first major rewrite of the Code since 2009.
The existing Code provides practical guidance on handling disciplinary and grievance matters and is often used by employers as the foundation for their internal policies and procedures. The proposed draft Code largely retains the existing framework but places a much greater emphasis on resolving workplace issues informally before formal disciplinary or grievance processes begin.
This shift reflects a clear policy objective: encouraging employers and workers to address concerns at an earlier stage, reducing unnecessary escalation and promoting more constructive workplace relationships.
In this article, we consider some of the key proposals employers should keep an eye on.
Application to workers
The current Code primarily refers to employees, although its principles are often applied more broadly in practice. The draft Code replaces references to "employee" with "worker" throughout and encourages employers to follow a consistent approach when handling workplace concerns involving all categories of workers.
The practical impact of this change may be limited, though. Where a claimant is an employee, employment tribunals must take the Code into account when considering relevant claims and can increase or reduce certain awards by up to 25% where there has been an unreasonable failure to comply with the Code. Despite the proposed changes to the Code, there appear to be no current plans to extend this provision to claimants who are not employees.
Nevertheless, the proposed terminology change serves as a useful reminder for employers to consider whether their disciplinary and grievance procedures are applied consistently across their workforce.
A greater focus on informal resolution
The most significant feature of the draft Code is its emphasis on informal resolution.
The draft Code states that workplace issues should be addressed informally in the first instance wherever possible. Workers are encouraged to raise concerns directly with the relevant individual, line manager or another appropriate person before commencing a formal grievance process. Where a formal grievance is subsequently submitted, the worker should explain what steps have already been taken to try to resolve the matter informally, or why such steps were not appropriate.
The draft Code also proposes that grievances should initially be presented as a short, clear written explanation of the concern, whilst recognising that further information may be provided during the course of the process.
Employers are similarly encouraged to consider informal resolution before commencing formal disciplinary action. The draft Code suggests that concerns relating to conduct or performance should be discussed informally (such as through regular management meetings) before escalating matters into a formal process, save in cases of serious misconduct where moving straight to a formal process is likely to be appropriate. Where relevant, employers should also consider any regulatory requirements that are binding on them which may, again, make moving straight to a formal process more appropriate.
The draft Code makes clear that informal conversations should not themselves result in a disciplinary warning or other formal sanction. However, employers may find it helpful to confirm the outcome of informal discussions in writing which provides a clear record of informal attempts to resolve particularly where standards of conduct, performance expectations or support measures have been discussed.
Where a matter does proceed to a formal disciplinary process, employers will also be expected to explain what informal steps have already been taken to address the concern, or why informal resolution was not considered appropriate.
These proposals demonstrate a clear intention to encourage both employers and workers to actively consider informal resolution first, rather than viewing formal procedures as the default starting point.
Mediation and conflict resolution
Supporting this increased focus on early resolution, the draft Code introduces a new section on mediation and facilitated conversations.
Acas highlights the potential benefits of using trained and impartial third parties to help resolve workplace disputes before they escalate into formal grievances or disciplinary proceedings. Such facilitators may be external mediators or appropriately trained individuals within the organisation.
The draft Code acknowledges that mediation will not be suitable in every case, particularly where there is a significant imbalance of power between the individuals involved or where there are concerns around intimidation, coercion or abuse.
The draft Code also highlights the value of conflict resolution training for managers, workers and representatives. Whilst this is presented as good practice rather than a mandatory requirement, it reflects the broader emphasis on equipping organisations to address issues at an earlier stage.
Suspension
The draft Code also expands on the current guidance relating to suspension.
In particular, it seeks to recognise the potentially significant impact suspension can have on workers, colleagues and the wider workplace. It notes the financial and operational costs associated with suspension, as well as its potential effect on workplace relationships.
The draft Code reiterates that suspension should only be used in limited circumstances, such as where an employer reasonably believes it is necessary to protect an investigation or the organisation. Any suspension should be as brief as possible and kept under regular review.
Employers are also encouraged to communicate decisions to suspend with transparency and sensitivity, reflecting Acas' concern that suspension can itself contribute to the escalation of workplace tensions if not handled appropriately.
The guidance serves as a timely reminder that suspension should not be viewed as an automatic response to allegations of misconduct.
Equality, inclusion and reasonable adjustments
The draft Code introduces a dedicated section on equality, inclusion and reasonable adjustments.
Although employers are already subject to obligations under the Equality Act 2010, the new section is intended to ensure that those considerations remain at the forefront of disciplinary and grievance processes.
The draft Code highlights the importance of making reasonable adjustments where appropriate and includes examples of practical measures employers may wish to consider, such as ensuring meeting venues are accessible, providing documents in accessible formats, or allowing additional support to be provided to a worker during the process.
The draft Code also encourages employers to remain alert to the risk of unlawful discrimination when handling workplace concerns, both during informal discussions and throughout any formal procedure.
Alongside these changes, the draft Code suggests that it may be good practice to allow a worker to be accompanied at informal meetings or conversations, particularly where requested. Employers should in any event consider whether additional support may be required in light of their obligations under the Equality Act 2010.
Next steps
The consultation is open until 11:59pm on 23 September 2026. Following the consultation period, the government will consider responses and determine whether the draft Code should be presented to the Secretary of State for approval.
Whilst employers should not feel compelled to make immediate changes to their disciplinary and grievance procedures while the consultation remains ongoing, the draft Code provides a useful indication of the government's direction of travel.
In particular, employers may wish to review whether their existing policies and procedures place sufficient emphasis on informal resolution, early intervention and mediation. Whilst many employers will already utilise informal performance management discussions, workplace mediation and other early-stage interventions in practice, the draft Code suggests that Acas intends these approaches to play a more central and consistent role in the management of workplace conflict. Employers may also wish to consider whether managers are appropriately trained to address workplace concerns at an early stage and whether current processes adequately account for equality considerations and reasonable adjustments.
Taking these steps now should help employers prepare for any future changes and place them in a stronger position to resolve workplace issues before they escalate into formal disputes.
