Acas has published a new draft Code of Practice on disciplinary and grievance procedures (the 'draft Code of Practice') and has launched a consultation on it which remains open until 23 September 2026. 

The draft Code of Practice represents the most significant overhaul to the Code of Practice on disciplinary and grievance procedures (the 'Code') in over 15 years, with the last full revision taking place in 2009. Its stated intention is to better promote the early resolution of concerns in the workplace, given that the cost of formal disciplinary and grievance procedures is estimated to cost UK employers £2.36bn a year. 

It is important that employers are familiar with and follow the Code, as it is a statutory code where the consequence of failing to follow it is an uplift of up to 25% on compensation awarded by an Employment Tribunal to a successful claimant.

Here we set out the key proposed changes set out in the draft Code of Practice, and what they could mean for employers.

What are the proposed key changes?

Employers would be required to consider dealing with concerns informally first

The draft Code of Practice would require employers to consider an informal approach when dealing with concerns about a worker and sets out how that informal approach should be carried out. Whilst the draft Code of Practice acknowledges that this approach will not be appropriate in every situation (for example, in cases of gross misconduct), it would require employers to at least consider an informal approach in every case.

This is because employers would also be required to set out in any subsequent letter inviting an employee to a formal disciplinary meeting what steps they have taken to resolve the concern informally or why no such steps have been taken. 

The Code would apply to ‘workers’

The current Code only applies to disciplinary or grievance matters relating to employees whereas the draft Code of Practice proposes to extend its application to 'workers' more broadly. However, employers should note an important limitation, which is that the Employment Tribunal's power to uplift a compensation award by up to 25% for failure to comply does not extend to workers, it applies only to employees. The practical impact of this extension may therefore be limited in enforcement terms, though it signals an intention for the Code to have broader workplace coverage.

The approach to suspensions would be tightened

The draft Code of Practice would require employers to have a clear reason for suspending a worker which is either based on a legal requirement, or a reasonable belief that the suspension would protect the investigation, the organisation, other staff and/or the person under investigation. The draft Code of Practice also sets out a best practice for employers when dealing with suspensions, including clearly explaining the reason for the suspension to the worker and keeping the suspension under review. 

Further proposed considerations for employers 

The Draft Code of Practice would also formalise the need for employers to consider the following: 

• Reasonable adjustments for employees: The draft Code of Practice would require employers to check with workers whether any adjustments are needed and sets out some examples of the types of adjustments that an employer should consider. 
• Providing appropriate training: The draft Code of Practice proposes that employers provide training and support to help managers, workers and representatives build the skills and confidence to resolve concerns.
• Mediation and facilitated conversations: The draft Code of Practice would also encourage employers to consider using mediation or a facilitated conversation to resolve concerns, although it acknowledges that these may not be appropriate in every situation (for example, where there is a substantial power imbalance) and that not all employers will be able to facilitate these. 

Next steps

The consultation runs until 23 September 2026. It has not been confirmed when the new Code is likely to come into force. Depending upon the feedback, further revisions may be made to the draft Code of Practice before it is laid before parliament for approval. Once approved, the non-statutory guidance which sits alongside the Code will also be updated so that it aligns with the new Code.

Key takeaways for employers

The draft Code of Practice places much greater emphasis on the early resolution of concerns, which is perhaps unsurprising given the current Employment Tribunal backlog. Therefore, employers will need to ensure that informal resolution is considered in every case and that they document what steps have been taken to resolve the matter informally or why informal resolution is inappropriate, as a failure to do so could result in an uplift to any compensation awarded to a successful claimant. Equally, it would be sensible to document any considerations regarding reasonable adjustments, as a failure to make reasonable adjustments for a disabled worker could also result in an uplift. 

Employers may also face increased demand from workers (who are not employees) to have their grievances heard in line with their employer’s procedures which have not traditionally applied to them. This could place an additional demand on management and HR resource.

Whilst it may be too soon for employers to start updating their current policies it may be sensible to start considering how the changes, if implemented, would impact their current disciplinary and grievance processes and what changes may be required. Employers may also wish to consider how to upskill their workforce to tackle conflict at the earliest opportunity given the proposed emphasis on early resolution. 

You can share your thoughts on the draft Code of Practice via the Acas consultation page.