Employers have until 23 September 2026 to shape the biggest change to the disciplinary and grievance code (the Code) in more than a decade. The message from Acas is clear: resolve concerns early and informally wherever you can, and do not let matters default into formal procedures. The draft revised Code keeps the existing legal framework intact but places a greater focus on earlier, lower-conflict resolution. For employers, now is the time to check whether your procedures and manager training match that direction.
A stronger focus on earlier resolution
The consultation carries a simple message: not every workplace concern needs to become a formal disciplinary or grievance matter. Acas points to research showing that employers and workers can resolve many workplace concerns through early conversations and that informal resolution can be significantly less costly than formal procedures.
The draft Code therefore encourages employers and workers to raise concerns promptly and deal with them fairly, transparently and without unnecessary delay, before positions become entrenched. The existing Code already recognises the role of informal action but the draft Code gives early intervention and constructive dialogue greater prominence as key features of good employment relations.
What would change?
Although the overall framework remains familiar, the draft Code introduces several changes to encourage earlier and more effective resolution.
For disciplinary matters, the draft Code places greater emphasis on objective, reasonable and proportionate fact-finding before deciding how to proceed. Having established the facts, it encourages employers to consider a range of appropriate outcomes, including mediation or facilitated conversations where suitable, rather than assuming formal disciplinary action will necessarily follow. It also proposes that employers should explain, when notifying a worker of a formal disciplinary meeting, what steps they have taken to resolve the matter informally or, where none were appropriate, explain why that was the case.
The draft Code adopts a similar approach to grievances. It asks workers to say, where possible, how they would like their employer to resolve their concerns and to set out any previous attempts to sort the issue informally. The aim is to promote constructive dialogue at an earlier stage while preserving the need for appropriate investigation where formal procedures are necessary.
Acas has also moved away from using adversarial terminology when talking about informal resolution. For example, rather than referring to “disciplinary” and “grievance”, the draft Code refers to “concerns” and it does not use terms such as “allegations” and “penalty”. More significantly, the consultation sets out Acas’s belief that it is good practice for employers to follow the Code in relation to both workers and employees. It seeks views on the proposed change from the use of “employee” in the current Code to “worker” in the draft Code.
The consultation also updates the Code to reflect developments in workplace practice. The proposed changes include:
- new guidance on avoiding unlawful discrimination and making reasonable adjustments during workplace procedures;
- encouragement to provide training and support for managers, workers and representatives on handling conflict and informal resolution;
- more detailed guidance on when suspension may be appropriate;
- a consolidated section on the right to be accompanied; and
- a new section on mediation and facilitated conversations.
Acas is also seeking views on whether the Code itself, or accompanying non-statutory guidance, should address the use of artificial intelligence in disciplinary and grievance processes.
Taken together, these proposals reflect Acas’s view that effective workplace relationships depend not only on fair formal procedures but also on equipping managers and workers with the skills and confidence to resolve concerns before they escalate.
What would not change?
Employment tribunals would continue to take the Code into account in relevant cases and may adjust awards by up to 25% (up or down) where there has been an unreasonable failure to comply with it. This statutory adjustment power applies only to employees, rather than workers generally. That distinction is potentially significant given the draft Code’s proposed shift to “worker” terminology throughout. Legislative change would be necessary to broaden the scope of the adjustment power. Employers will therefore need to distinguish between the intended scope of good practice guidance in the draft Code and the circumstances in which a tribunal can make an adjustment to compensation.
What employers should do now
A revised Code is unlikely to come into force for some time, but the consultation is a useful prompt to check whether your current practices and procedures already support early and proportionate resolution.
In particular, consider whether:
- managers have the skills and confidence to address concerns informally where appropriate;
- disciplinary and grievance procedures support early resolution without creating unnecessary barriers to formal processes when required;
- investigation and suspension practices remain fair, proportionate and well documented;
- mediation or facilitated conversations could play a greater role in resolving workplace issues; and
- managers understand their responsibilities in relation to equality, discrimination and reasonable adjustments during workplace procedures.
You may also want to compare your written procedures with what happens in practice. Policies that permit informal resolution will have limited effect if managers lack the confidence, training or authority to use it effectively.
Whatever the final form of the revised Code, reviewing procedures now and building manager confidence to address workplace concerns at an early stage may help to reduce the risk of disputes escalating, even before a revised Code comes into force.
If you wish to influence the final Code, you can respond to the consultation until 23 September 2026.
