Acas consults on the first full rewrite of the statutory Code of Practice on Disciplinary and Grievance Procedures since 2009

What is the Acas Code of Practice?

The Acas Code of Practice on Disciplinary and Grievance Procedures is a statutory code that sets out the standards employers are expected to follow when dealing with disciplinary and grievance issues. Although it is not legally binding, employment tribunals must take the Code into account where it is relevant to a case.

An unreasonable failure to comply with the Code may result in a tribunal increasing or reducing compensation by up to 25% in certain claims, including unfair dismissal and discrimination. The draft revisions are therefore significant, as they would expand the matters that fall within the statutory Code and which tribunals may take into account when deciding whether to adjust compensation.

Consultation open until 23 September 2026

Acas published the draft revised Code of Practice on 30 July 2026 and is consulting on the proposals until 23 September 2026. This is the first full rewrite of the Code since 2009 and would make significant changes to the way employers are expected to deal with disciplinary and grievance issues.

The key proposals include:

• A much greater emphasis on informal resolution, bringing expectations around early and informal discussions into the statutory Code itself for the first time.

•  A new focus on "concerns" rather than disciplinary and grievance issues, with updated language intended to encourage earlier, less adversarial resolution.

• New requirements for disciplinary invitation letters and formal grievances to explain what informal steps have already been taken, or why none were appropriate.

• Clearer guidance on suspension, emphasising that it should only be used where genuinely necessary and setting out the circumstances in which it may be appropriate.

• New references to reasonable adjustments, reminding employers of their duties under the Equality Act 2010 and providing examples of adjustments that may be needed during disciplinary and grievance processes.

• A new section on mediation and facilitated conversations, encouraging their use where appropriate and providing that formal procedures should normally be paused while they take place.

• Greater emphasis on training, encouraging employers to equip managers, workers and representatives with the skills needed to resolve workplace conflict effectively.

• The replacement of "employees" with "workers" throughout the Code, although the statutory power to adjust compensation by up to 25% remains limited to employees.

• A consultation on the future use of AI, including whether the Code or accompanying non-statutory guidance should address the increasing use of artificial intelligence in disciplinary and grievance processes.

The consultation is expected to inform the final version of the revised Code, although no implementation date has yet been announced.

Learning points for employers

The draft Code represents a significant shift in the way workplace concerns are expected to be managed. If implemented, employers can expect much greater emphasis to be placed on genuine attempts by both employers and workers to resolve issues at an early stage, before they escalate into formal disciplinary or grievance procedures or employment tribunal litigation. Given the continuing pressures on the employment tribunal system, including lengthy delays before claims are heard, this emphasis on early resolution is unlikely to diminish.

Employers who wish to influence the final Code should consider responding to the consultation before it closes on 23 September 2026. We will continue to report on developments.

For more information or advice, please get in touch with Eleanor Searle in our Employment team.