Acas has launched a consultation on significant updates to its statutory Code of Practice on disciplinary and grievance procedures, in what is being described as an unexpected development.
The Code is being revised to encourage earlier and more informal resolution of workplace concerns, with the aim of reducing the substantial financial burden conflict places on UK employers.
Acas research has found that managing formal disciplinary and grievance procedures costs UK employers an estimated £2.36 billion per year, around ten times more than the £250 million annual cost of informal resolution.
The consultation is framed as an attempt to “start a conversation about how we can disagree better at work,” signalling a notable shift in the regulator’s approach to workplace disputes.
The Code provides guidance to employers, workers, and representatives on handling disciplinary and grievance situations, and has not been fully revised since 2009.
An unreasonable failure to comply with the Code can lead to Employment Tribunal awards being adjusted upward or downward by as much as 25%, making any changes to it consequential for employers and workers alike.
One of the most significant proposed changes is the move of informal resolution guidance from the Code’s Foreword into the main body of the statutory document, meaning a failure to attempt informal resolution could be considered by Employment Tribunals when determining award adjustments.
New sections have also been introduced to promote the use of mediation and facilitated conversations, with Acas research indicating that mediation is not currently widely used despite being a valuable and effective tool in resolving disputes.
The draft Code introduces a new expectation that employers and workers should speak to each other with an aim to resolve concerns early, and that both parties should deal with issues promptly without unreasonable delay.
Additional guidance on suspensions makes clear they should only be used in limited circumstances, and employers will be required to consider a range of potential next steps towards resolution following initial fact-finding and after a formal disciplinary meeting.
The draft Code states that “mediation or a facilitated conversation may help where misconduct or unsatisfactory performance is linked to a working relationship issue,” and that this “could be the sole outcome or provided alongside a warning where appropriate.”
Employers will also be required to state, when notifying a worker of a formal disciplinary hearing, what prior steps were taken to resolve the matter informally, or explain why none were taken.
Workers raising written grievances will be expected to suggest how they would like their concerns resolved and to provide a short, clearly written explanation, addressing widespread concerns about unnecessarily long and complex grievances.
The consultation also seeks views on whether the use of artificial intelligence in disciplinary and grievance procedures raises issues that Acas should address either in the Code or in its non-statutory guidance.
Language throughout the draft Code has been updated towards a less adversarial and legalistic tone, with Acas research indicating that appropriate language is important for enabling constructive dialogue and early resolution.
The consultation closes on 23 September 2026, and Acas will also review and update its non-statutory guidance on disciplinary and grievance procedures in line with any revisions made to the Code.