On 30 July 2026, Acas issued a new draft Code of Practice on disciplinary and grievance procedures (“the draft Code“) to replace the Code issued in 2015 (“the Code”). It will be subject to public consultation and then laid before both Houses of Parliament.
What is the Code?
Acas, the Advisory, Conciliation and Arbitration Service, currently maintains five statutory Codes of Practice, which are issued under powers set out in the Trade Union and Labour Relations (Consolidation) Act 1992. The Code on disciplinary and grievance procedures was published in 2009 and had since been replaced in 2015. The Code does not apply to redundancy dismissals or the non‑renewal of fixed-term contracts when they expire. The Code is not binding although employment tribunals must take it into account. A tribunal may, where there is an unreasonable failure to comply with the Code, award an uplift or reduction to any compensation awarded by up to 25%.
What changes does the draft Code make?
Informal Resolution
One of the most significant structural changes is that early, informal resolution is being written directly into the statutory draft Code itself. Acas notes that the existing Code’s guidance on informal resolution sits only in its non-statutory foreword, whereas the draft Code incorporates dedicated sections on “Resolving employer concerns informally” and “Resolving worker concerns informally” as substantive, numbered provisions. The draft Code states that an informal approach will not be suitable in every case, for example, where concerns involve gross misconduct or other serious issues that could lead to dismissal, which should still be handled through a formal disciplinary procedure.
Elevating this guidance into the statutory text means tribunals must consider it, and failure to attempt informal resolution could now factor into the 25% compensatory award adjustment.
“Worker” rather than employee
The current Code is framed largely around “employees,” while noting that employers may choose to extend the same procedures to workers. The draft Code instead uses “worker” as its primary term throughout, including in relation to the statutory right to be accompanied, fact-finding, suspension, and grievance handling. The draft Code imposes the equivalent requirement on workers raising a formal grievance, that the written grievance must set out what steps have already been taken to resolve the concern informally, or the reason why none have been taken. However, the 25% uplift power remains applicable to employees only.
Use of words
In the Foreword to the draft Code the use of terms is clarified. It makes it clear that the word ‘must’ is used to indicate where something is a legal requirement. The word ‘should’ is used to indicate a strongly recommended step or expectation. The term ‘good practice’ is used to indicate what Acas considers to be good employment practice. This helps employers understand the nature of the obligations under the Code.
Another change in terminology is that the draft reframes the subject matter around “concerns at work,” covering both employer concerns about misconduct or poor performance and worker concerns, problems, or complaints, rather than simply making reference to “disciplinary” and “grievance”. This is another indication that the Code will be applicable from the moment a concern arises, before any formal process is engaged.
Documentary requirements
The draft Code also introduces a new documentary requirement to support this emphasis on early informal resolution. Where a formal disciplinary meeting is needed, the written notification to the worker must state what steps have already been taken to attempt to resolve the concern informally, or the reason why none have been taken. This requirement does not appear in the current Code, which does not ask either party to account for informal steps as part of the formal notification.
Suspension
The draft Code expands the guidance on suspension considerably by introducing a necessity test. The current Code notes that a period should be as brief as possible, kept under review and made clear that is not considered a disciplinary action.
The draft Code sets out specific grounds justifying suspension (protecting the investigation, the organisation, other staff, or the person under investigation) and adds new good-practice guidance on how a decision to suspend should be communicated, including doing so sensitively and in private, explaining that it is not disciplinary action, and setting out next steps and available support.
Policies and training on handling concerns at work
The draft Code introduces this new section to encourage organisations to develop clear, specific written policies that staff can access and understand, and stating that it is good practice to provide training so that managers, workers, and representatives can build the skills and confidence to resolve concerns early and effectively. The current Code addresses written policies only briefly, in general terms about fairness and transparency whereas the draft’s explicit reference to training is new.
Mediation and facilitated conversations
The draft Code introduces this new section, which is absent from the current Code. Under the proposed provisions, where the parties agree to mediation or a facilitated conversation during a formal disciplinary or grievance process, the formal procedure should be suspended while that process takes place. The draft Code refers to mediation and facilitated conversations at multiple stages throughout the procedure, signalling Acas’s intention to place greater emphasis on early intervention and alternative methods of dispute resolution.
Avoiding Unlawful Discrimination
The draft Code introduces new references to reasonable adjustments not found in the current Code. It suggests that an informal response to an employer’s concern may include implementing a reasonable adjustment for a disabled worker. Where concerns are not resolved initially, a further informal meeting may be useful to introduce adjustments or review training progress. The new “Avoiding unlawful discrimination” section also encourages employers to allow a support worker familiar with the employee’s disability, or an interpreter where needed, to attend meetings alongside the statutory companion. The current Code contains no comparable provisions on reasonable adjustments or disability-related support during disciplinary or grievance procedures.
Proportionality and small employers
The draft Code states that employment tribunals will take into account the size and resources of the employer, including small businesses, when deciding relevant cases, and acknowledges that it may not always be practicable for all employers to follow every step in the Code
Next Steps
The consultation is open to the public until 23 September 2026, and responses can be submitted through a form or by email to Acas. Employers should keep an eye on developments, as the final draft Code, once approved, will set the benchmark tribunals use when assessing whether disciplinary and grievance procedures were handled fairly. In particular, employers will need to ensure that their disciplinary and grievance procedures are amended to build in a documented informal resolution stage.
If you have any questions, please contact our Employment team for further support or information.
Thank you to Hannah Featonby-Lyons for all her help in preparing this post.