On 30 July 2026, the Advisory, Conciliation and Arbitration Service (“Acas”) launched a consultation on a draft updated version of its Code of Practice on disciplinary and grievance procedures, which represents the first comprehensive revision of the code since 2009. Acas has framed the consultation as a response to wider shifts in the modern workplace, including changes in where and when work happens, how work fits into our lives, and how colleagues engage with one another.
In this article, Emily Allison and Jake Hayward examine the key proposals and consider how they may affect the way employers manage workplace concerns and resolve employment disputes.
Why are changes being made?
In announcing the news of this significant consultation, Acas provided insight into the rationale behind the intended revision of the Code. Instead of merely updating the existing guidance, the draft Code and consultation reflect Acas’s view that workplace conflict is a significant and costly issue for employers, and that a modernised framework is needed to reflect changes in the way people work and interact.
In announcing the consultation, Acas Chair, Baroness Maggie Jones, emphasised that disagreements are a natural part of working life, but the way they are managed can determine whether they escalate or are resolved effectively:
“Acas research shows that formal processes can be very costly for everyone involved. Effective early intervention in conflict saves money and time as well as promoting staff wellbeing and productivity… Our new Code reflects the benefits of handling work issues early and informally. It will help employers and workers handle concerns in a way that’s fair, transparent and timely. I would encourage everyone to take part in the consultation.”
In particular, Acas highlighted that workplace conflict remains a significant issue for both employers and workers. Recent Acas research found that 44% of working-age adults in England, Scotland and Wales experienced some form of conflict at work in the past 12 months.
Acas also highlighted research indicating that managing formal disciplinary and grievance procedures costs UK employers an estimated £2.36 billion annually, compared with approximately £250 million for informal resolution. Against this backdrop, the draft Code places greater emphasis on early intervention, informal resolution and other measures designed to address concerns before they escalate into more formal and costly disputes.
What are the proposed changes?
Informal resolution: Informal resolution is central to the draft Code, with Acas encouraging employers and workers to address concerns at an early stage before they escalate into more formal disputes. Unlike the current Code, the draft Code introduces dedicated sections on resolving employer and worker concerns informally, including through discussions, representative involvement and facilitated conversations. Importantly, unreasonable failure to comply with the Code may allow a Tribunal to increase or reduce a relevant compensation award by up to 25%.
New disciplinary invitation letter requirements: The draft Code retains the existing requirement for disciplinary invitations to set out the allegations, potential consequences, meeting details and the right to be accompanied. However, it introduces an additional expectation that employers explain what steps have been taken to resolve the concern informally, or why this was not considered appropriate. This is likely to require employers to review template letters and how they record attempts at informal resolution, although the draft Code recognises that informal approaches will not always be suitable, particularly in cases involving alleged gross misconduct.
Terminology: The draft Code replaces the term “employee” with “worker” throughout the majority of its provisions, reflecting Acas’s intention that principles of fair and effective workplace conflict resolution should apply across a broader range of working relationships. However, the power for employment tribunals to increase or reduce compensation by up to 25% for unreasonable failure to comply with the draft Code would remain limited to employees.
Suspension: The draft Code provides more detailed guidance on suspension, making it clear that suspension should only be used in limited circumstances. Suspension during a disciplinary investigation should only be considered where necessary to comply with a legal requirement, or where the employer reasonably believes it is needed to protect the investigation, organisation, other staff, or the individual concerned, whilst highlighting the importance of communicating suspension decisions sensitively.
Equality and discrimination: The draft Code places greater emphasis on employers’ obligations under the Equality Act 2010, including the need to avoid unlawful discrimination and consider reasonable adjustments. It provides examples of potential adjustments, such as accessible meeting arrangements, alternative document formats, and allowing appropriate support workers to attend meetings. Workers are also encouraged to raise any adjustments needed at an early stage.
Complex grievances: The draft Code acknowledges a growing trend towards lengthy and complex written grievances, which can delay resolution and increase workplace tensions. This comes at a time when the increased availability of AI tools has changed the way workplace grievances may be prepared and presented. The draft Code encourages workers to provide a clear written explanation of the nature of their concern, the outcome they are seeking, and any informal steps already taken. However, employers should continue to allow workers opportunities to provide further information where required as matters progress.
What the changes could mean in practice for employers
Whilst many of the proposed changes reflect existing good practice, the draft Code is likely to require employers to review their disciplinary and grievance procedures, template documents (such as disciplinary meeting invitation letters), and management training. Employers should consider whether their current processes appropriately support early and informal resolution, whether managers have the skills and confidence to address workplace concerns at an early stage, and whether their procedures adequately address issues such as reasonable adjustments, suspension, mediation and facilitated conversations.
Ongoing consultation
The consultation remains open until 11:59pm on 23 September 2026, and Acas has invited views on all aspects of the draft Code. The consultation also considers wider issues that may influence the final version, including the use of AI in disciplinary and grievance processes. Given the increasing use of AI tools in the workplace, Acas has asked whether there are specific issues arising from their use in disciplinary and grievance procedures that should be addressed in the Code or accompanying non-statutory guidance. This may become an important consideration as the final version of the Code develops.
How can we help?
If you would like to discuss how these changes may affect your business and recruitment, please contact our Employment & Immigration team today.
Emily is an Associate in our Employment & Immigration team. Emily conducts a diverse range of employment law matters, including advising on employment aspects of corporate transactions, providing... Read More
Jake Hayward is a Trainee Solicitor in our Employment and Immigration team. Jake studied both LLB Law and his LPC LLM at Swansea University.... Read More
