ACAS Code of Conduct on Disciplinary and Grievance Procedures: What the Proposed Changes Mean for Employers

Last week, ACAS published a consultation on the proposed changes to its Code on disciplinary and grievance procedures. In the midst of all of the Employment Rights Act 2025 (ERA25) changes this year, you’d be forgiven for overlooking the importance of this proposed update, but don’t worry, we are on hand to take you through what these proposed changes could mean for you.

The purpose of this Code is to assist the parties in resolving concerns in the workplace before they reach Tribunal. The Code, which has always had statutory force, meaning it must be followed by employers whatever their size, has not been updated since 2015, so it’s important that you know what to expect.  With a strong emphasis on informal resolution, read on to find out how the proposed changes may impact your current policies and procedures.

Key Changes

Informal resolution

It is proposed that the Code be updated to include a recommendation that the parties engage in an informal resolution process at the outset of any concern (disciplinary or grievance) in the main body of the guidance. Given that this recommendation was featured in the foreword of the 2015 version, you might be wondering why this is of particular importance. As you may know, failure to comply with the Code (on either the employer’s or worker’s side), may result in a Tribunal implementing up to a 25% uplift, or reduction, to an award it makes, if such failure is deemed to be unreasonable. Not engaging with or encouraging informal resolution was not previously considered as a factor when deciding a 25% uplift or reduction, but now that it is proposed to include this requirement in the body of the Code, we can expect that this may no longer be the case. If informal resolution is not properly considered, explored and documented, it could be a costly mistake for employers.

Disciplinary and grievance correspondence

In line with engaging properly with informal resolution, it is proposed that the Code will include a requirement that disciplinary and grievance letters should include details about what informal steps were taken in relation to the matter and, if not considered appropriate, the reasons why this was decided. This proposed change further highlights the importance of documenting your considerations during the informal stage, as not being able to evidence these, nor including the details in any disciplinary and grievance letters, could amount to a breach of the revised Code and result in the uplift of a Tribunal award.

Suspension

Suspension is a tricky aspect of any disciplinary process for employers to navigate safely. Therefore, it is welcome that the revised Code includes much more detailed guidance regarding the suspension of a worker, emphasising that suspension should only be considered where it is truly necessary. The following examples, where suspension could reasonably be considered, are featured in the revised Code:

• For the employer to comply with a legal requirement; or
• If an employer reasonably believes it would protect:
• the investigation;
• the organisation;
• other staff; or
• the person under investigation.

The revised Code also includes guidance relating to best practice when implementing a period of suspension. This states that employers:

• Communicate the decision to suspend sensitively and in private;
• Clearly explain the reason for the suspension and that it is not disciplinary action; and
• Explain the next steps in the process, who the worker can contact if they have any concerns, and any support available.

Other notable changes

Other proposed changes to the Code which are worth keeping a note of, include:

• The updated Code now refers to ‘worker’ throughout, rather than ‘employee’, widening the application of this Code (save for the 25% uplift / reduction, which will remain applicable to employees only);
• Policies and training on handling concerns at work are specifically drawn out, highlighting the importance of keeping your policies and procedures up to date, ensuring that all staff members have access to them, and managers are trained adequately to manage situations;
• Details about the advantages of mediation or facilitated conversations between parties are included at the end of the Code, including that if this is utilised, any ongoing formal process in relation to the matter should be paused temporarily; and
• An emphasis on employers’ duty in accordance with the Equality Act 2010 and the requirement for adaptability of the process when it comes to reasonable adjustments has been added.

…

The revised Code is still a draft, with the consultation closing on 23 September. There may be further amends to the Code prior to its production, but until then, this draft gives us an indication as to what employers could be facing. Informal resolution, whether that be through mediation, facilitated discussions or engaging with appointed legal or TU reps, in a meaningful manner to try to resolve workplace issues at an early stage, where this remains appropriate, is given heightened prominence under the revised Code, and we expect this to be a feature of the final version.  Getting into good habits now, both in terms of considering informal resolution, and documenting the steps taken to try to resolve issues informally prior to formal action being taken in disciplinary and grievance situations, is highly recommended.

If you would like to review your disciplinary and grievance procedures or letter templates, or would like tailored in-house training for your managers on handling concerns, please contact our friendly team on 01904 437680 or check out our training programmes (Employment Law Training | Employment Law Solicitors | Torque Law).