In brief
On 30 July 2026, Acas (Advisory, Conciliation and Arbitration Service) launched a consultation on a new draft Code of Practice on disciplinary and grievance procedures (“Code”). This represents the first full revision to the Code since 2009, with consultation remaining open until 23 September.
The overhaul emphasises the importance of informal conflict resolution, a focus which follows research by Acas to the effect that formal disciplinary and grievance procedures cost UK employers GBP 2.36 billion annually.
With the aim of saving money and time, Acas seeks to encourage early and informal resolution in its draft Code, shifting the document’s tone and including a new section on mediation and facilitated conversations. Additionally, the draft Code adjusts the terminology from ‘employees’ to ‘workers’, widening its coverage
Additional changes to the draft Code include:
- Circumstances for suspension
- Reasonable adjustments
- Grievance management
If implemented (in its current or an amended form), the draft Code will represent a material shift in how employers are expected to manage concerns and disciplinary matters.
Key takeaways
Employers should be aware of the following potential developments:
- Scope of the Code is proposed to increase – there would be a new focus on informal resolution. Guidance is provided in the draft Code on the importance of seeking to resolve matters informally before moving to a formal process, including what ‘informal’ steps may be appropriate. A failure to undertake an informal process, save in exceptional circumstances, may render a process unfair, and informal processes are generally likely to come under greater scrutiny.
- Code would apply to ‘workers’ in addition to ‘employees’, save in respect of a Tribunal’s ability to award a 25% uplift to a Tribunal award for failure to comply with the Code, which will remain applicable to employees only.
- Mediation or a facilitated conversation would need to be considered and offered where suitable. This would involve the appointment of an independent third party, being an accredited mediator or a trained facilitator. If mediation cannot be offered, it will be important for employers to be able to explain why it was not appropriate or possible.
- Circumstances in which suspensions are appropriate could become more limited. The draft Code provides for a list of limited circumstances in which suspension may be appropriate. In addition, it highlights the importance of keeping the suspension as brief as possible, and the need to keep the suspension under review.
- Reminder of the importance of avoiding discrimination. The draft Code includes a new section reminding employers of their duty to avoid discriminating against workers in need of reasonable adjustments during grievance and disciplinary processes.
- Draft Code provides workers with more guidance on outlining their concerns and helpfully, emphasises that a 'short, clear written explanation of the concern’ will often be sufficient.
What is proposed to change under the new draft Code?
1. Informal resolution and expansion of scope
The draft Code emphasises the importance of informal resolution of workplace concerns. This demonstrates a marked shift from the existing Code. It will also apply to ‘workers’ in addition to ‘employees’.
- The draft Code emphasises the importance of ‘conversations’, which are placed on equal footing to ‘meetings’, with employers and workers being obliged to avoid unreasonable delay. This indicates that informal engagement will need to form part of the early process for dealing with disciplinary matters and grievances.
- Less adversarial language is adopted throughout the draft Code. Rather than referring to ‘disciplinary’ and ‘grievance’ issues, when discussing informal resolution, the draft Code refers to ‘concerns’.
- Mediation or facilitated conversations should be offered in ‘appropriate cases’ and ‘where possible’. This would involve the appointment of an independent third party, being an accredited mediator or a trained facilitator.
Should these changes be implemented, employers will need to:
- Ensure an informal process is undertaken at the outset, save in exceptional circumstances. Any informal process would need to be fair, transparent, and consistent, and HR policy documents should be updated to reflect the new approach envisaged.
- Reflect this shift in their own communications. It is a principle of the draft Code that employers and workers should ‘speak to each other with an aim to resolve concerns’. Internal HR communications should reflect an intent to resolve concerns and prevent escalation.
- Evidence they have considered mediation or a facilitated conversation. Whilst Acas clearly understands mediation or a facilitated conversation might not be possible in all situations, it will be important for employers to have evidence that they have considered this.
Importantly, the draft Code states organisations will need to provide training at all relevant levels to ensure workers have the relevant “skills and confidence needed to resolve concerns early and effectively”.
2. Circumstances for suspension
Whilst the current version of the Code allows employers to approach the issue of suspension on a case-by-case basis, the draft Code provides a set list of circumstances in which suspension may be appropriate.
The draft Code envisages that employers should only suspend a worker during a disciplinary investigation if this is necessary to comply with a legal requirement or if the employer reasonably believes it would protect the investigation, the person under investigation, other staff, or the organisation’s interests.
Acas confirms that any suspension period should be as brief as possible and kept under review.
3. Reasonable adjustments
The draft Code makes explicit reference to the duty to make reasonable adjustments for workers with disabilities and avoiding discrimination more generally.
The relevant new section provides examples of reasonable adjustments, including:
- Ensuring a venue for a meeting is physically accessible.
- Providing relevant documents in a format that is accessible.
- Allowing individuals to bring a support worker who has knowledge of their disability, or an interpreter, to meetings.
4. Grievance management
In a change that will be helpful for employers, the draft Code encourages workers to provide (1) an explanation of the nature of their grievance at the outset, explaining ‘their concern clearly in a way that will enable the employer to understand and resolve it’, (2) how they would like their concerns to be resolved, and (3) what steps have already been taken to resolve the concern informally, or the reason why none have been taken.
In addition, the draft Code emphasises that a ‘short, clear written explanation of the concern’ will often be sufficient.
This should go some way to encouraging workers to refrain from submitting lengthy and involved (sometimes AI generated) grievances - or at least give employers more recourse to ask individuals to provide a more limited summary of their concerns.
What should employers do now?
It will be important for employers to keep abreast of the proposed changes to the Code, which may require changes to existing grievance and disciplinary policies in due course, given it will remain the case that Tribunals can uplift awards for employees by up to 25% for an employer’s failure to comply with the Code.
Given the prevalence of AI-generated grievances, employers should also consider how they can adjust their policies and procedures to encourage workers to take greater ownership of the content of their grievances and their desired outcome, including steps to limit the length of grievances submitted. Informal resolution should be encouraged, where appropriate, to re-orientate the focus to maintaining the working relationship and resolving concerns.
As explained above, the consultation is due to close on 23 September 2026, with further updates expected once responses to the consultation are reviewed.
Please get in touch with your usual contact at Baker McKenzie to discuss this development in more detail.
Joe Enright, Trainee Solicitor, has contributed to this update.