Acas releases draft updated code: Modernising workplace discipline and grievances

Acas has published a draft revised code of practice on disciplinary and grievance procedures, marking the first comprehensive rewrite since 2009.

The proposed changes place greater emphasis on informal resolution, responsible use of suspension, transparency in correspondence and accessibility for all workers. If adopted, the new code will reshape how employers manage workplace disputes and could influence tribunal outcomes, including the potential 25% uplift in compensation for non‑compliance.

A fresh framework for workplace procedures

Acas’ draft code represents a substantial modernisation of workplace dispute handling. The update reflects developments in case law, evolving workplace culture and the need for clearer guidance on early resolution and procedural fairness.

Although the code is not legally binding, tribunals must take it into account in an unfair dismissal claim when assessing whether an employer has acted reasonably. As a result, the draft proposals offer a strong indication of the standards employers will be expected to meet once the new code is finalised.

One of the most notable changes is the elevation of informal resolution.  From a brief foreword reference to a formal part of the statutory code. This shift signals that employers should make genuine attempts to resolve issues informally before initiating formal procedures.

Importantly, a failure to do so could now be considered when tribunals assess whether a dismissal was fair and in applying the 25% uplift in compensation. This change places greater responsibility on managers to handle early‑stage conversations effectively and to document the steps taken.

Informal resolution moves centre stage

The draft code makes clear that informal resolution should be the starting point for most disciplinary and grievance matters.

Acas emphasises that early intervention, constructive dialogue and facilitated conversations can often resolve concerns more quickly and with less conflict.

By embedding informal resolution within the statutory code, Acas is signalling that employers must treat it as a meaningful procedural step rather than an optional courtesy.

This will require employers to ensure managers are trained to identify when informal action is appropriate and to record the steps taken, particularly as tribunals may now consider the absence of informal efforts when determining uplifts.

New requirements for disciplinary and grievance letters

The draft code introduces a new requirement for transparency in correspondence. Employers will need to explain in disciplinary invitation letters and grievance responses what informal steps were taken, or why informal resolution was not suitable.

This change will require more detailed record‑keeping and clearer documentation of early actions. It also reinforces the expectation that informal resolution should be considered in every case, even where the employer ultimately decides that a formal process is necessary.

A stricter approach to suspension

Suspension is another area receiving significant attention. The draft code introduces a necessity test, making clear that suspension should only be used where it is essential to protect the integrity of an investigation, the safety of individuals or the wider workplace.

Acas emphasises that suspension is not a neutral act and should not be used as a default response. Employers will need to demonstrate that alternatives were considered and that suspension was genuinely required.

This codifies existing case law and will require employers to revisit any automatic suspension practices, ensuring decisions are justified.

Terminology shift: From ‘employee’ to ‘worker’

The draft code replaces references to “employees” with “workers,” widening its scope to include casual staff, zero‑hours workers and others who may not have traditional employee status.

While unfair dismissal rights still apply only to employees, the procedural expectations within the code will now extend across a broader section of the workforce. This change reflects the increasingly diverse nature of modern working arrangements and ensures that procedural fairness applies more consistently.

New sections on accessibility and resolution tools

Acas has also introduced new sections addressing reasonable adjustments, manager training and mediation.

The draft code encourages employers to consider adjustments for disabled workers throughout disciplinary and grievance processes, ensuring accessibility at every stage.

It also highlights the importance of equipping managers with the skills needed to handle disputes effectively. Mediation and facilitated conversations are strongly encouraged, and the draft code allows formal procedures to be paused to enable mediation to take place. This reflects a more flexible and resolution‑focused approach to workplace conflict.

Our Employment Law team can support employers in reviewing their disciplinary and grievance procedures, updating documentation and training managers to handle disciplinary and grievance procedures.