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By Bruce Henry, Principal Lawyer
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Acas has launched a consultation on a draft new Code of Practice for disciplinary and grievance procedures, marking the first substantial review of the Code in more than a decade. The proposed changes place a much greater emphasis on resolving workplace concerns informally and at an early stage by placing informal resolution of disputes in the body of the Code rather than in the Foreword, reflecting growing evidence that formal workplace disputes are costly for both employers and workers.Â
The draft Code adopts the broader term "worker" rather than "employee" in much of its wording, potentially extending its relevance to a wider range of individuals in the workplace. It also requires employers to consider adjustments to their disciplinary and grievance procedures to avoid discrimination. The draft Code encourages employers and workers to address concerns fairly, transparently and without unnecessary delay before matters escalate into formal disciplinary or grievance procedures. Acas estimates that formal disciplinary and grievance processes cost UK employers £2.36 billion each year, while informal resolution is significantly cheaper and can help preserve workplace relationships. The draft Code also suggests that employers, with the worker’s consent, could contact their trade union representative for an informal conversation but confirms the existing position that a worker has no statutory right to be accompanied during an informal conversation.  Â
Among the notable proposals are new expectations for employers and workers to explain in the invitation to a formal disciplinary meeting what informal steps have already been taken to resolve the concern.
The draft also provides stronger guidance on the use of suspension, emphasising that it should only be used where necessary to comply with a legal requirement or to protect the investigation of other staff and not as a routine response. The draft reflects recent case law on suspension by recognising that it may not be a ‘neutral’ act. Â
In respect of grievances, the draft Code advises that mediation or a facilitated conversation may be an alternative to a formal grievance meeting and can be suggested by anyone at any stage. They would be voluntary and confidential. They would not be suitable if there is a factual decision about statutory rights or is a power imbalance.
As with the current Code, employment tribunals will continue to take compliance into account when deciding relevant claims and may increase or decrease compensation awards by up to 25% where there has been an unreasonable failure to follow the Code.
The consultation is open until 23 September 2026.