Acas Disciplinary and Grievance Code of Practice
What Could Change And What SME Employers Need To Know
A major update to the Acas Disciplinary and Grievance Code of Practice is being considered. It is the first full review of the Code since 2009, and although the basic principles of handling workplace problems fairly remain the same, there is a noticeable shift in emphasis. Acas wants more workplace problems dealt with early, before anyone reaches for the formal procedure. For SME employers, that could mean placing greater emphasis on constructive management conversations, addressing problems when they first arise, and ensuring managers have the confidence to tackle difficult situations.
First Things First, Nothing Has Changed Yet
The revised Code is currently a draft. The existing Acas Code continues to apply, and employers do not need to start rewriting their disciplinary and grievance procedures just yet. Once the consultation has finished, any revised Code will need Government approval and must be presented to Parliament before it comes into effect. However, the draft gives us a useful indication of what employers may eventually be expected to do differently.
A Much Bigger Role for Informal Resolution
This is probably the most important proposed change. Acas wants employers and workers to consider whether a problem can be resolved informally before starting a formal disciplinary or grievance procedure.
For an employer, that could mean having an early conversation about:
- conduct or behaviour;
- performance standards;
- expectations;
- additional training or support;
- reasonable adjustments; or
- a problem developing between colleagues.
For an employee raising a concern, it could mean discussing the issue with their manager and exploring possible solutions before submitting a formal grievance. That doesn’t mean every workplace problem should be dealt with over a cup of coffee. Serious allegations, potential gross misconduct and circumstances where dismissal may be a possible outcome will usually still need a proper formal process.
The important point is to consider whether informal action is appropriate rather than automatically jumping straight into a formal procedure.
HR Myth
“If there’s a problem with an employee, I need to start a disciplinary.”
Reality
Not necessarily. The proposed Acas Code puts much greater emphasis on resolving appropriate concerns informally before moving to a formal procedure.
You May Need to Show What You Tried First
Under the proposed Code, once a matter does become formal, there would be more emphasis on explaining what has already been done to try to resolve it. For example, an invitation to a formal disciplinary meeting may need to explain what informal steps have already been taken, or why an informal approach was not appropriate. Similarly, employees raising a grievance would be encouraged to explain what they have already done to try to resolve their concern.
That makes good record keeping important. An informal conversation doesn’t need a six-page set of minutes, but managers should be able to show that an issue was raised, what was discussed and what was agreed.
Mediation and Facilitated Conversations
The draft Code gives mediation and facilitated conversations a much more prominent role. These could be considered where a workplace relationship has deteriorated or where the parties need some help having a constructive conversation. They could potentially be used before, during or even after a formal process.
For smaller businesses, formal mediation will not always be practical or proportionate. But the principle behind it is useful: sometimes getting people into a room and helping them have the conversation they have been avoiding can prevent a relatively small problem becoming a very large one.
Grievances: Shorter and Clearer Could Be Better
Anyone who has received a very long grievance will probably welcome this part. The proposed Code encourages workers to explain their concern clearly enough for their employer to understand and resolve it. Acas suggests that a short, clear written explanation will often be enough initially, with further information provided later if necessary.
Workers would also be encouraged, where possible, to say how they would like the problem to be resolved. That could be a useful shift.
A grievance process should be about understanding the problem and trying to resolve it – not simply producing increasingly long correspondence between the parties.
Suspension Shouldn’t Be Automatic
The proposed Code also gives considerably more guidance about suspension during a disciplinary investigation.
The message is essentially: Don’t suspend simply because there is an allegation. Employers should consider whether suspension is actually necessary, for example, because there is a risk to the investigation, the business, other employees or the person being investigated.
If someone is suspended, employers should also think about how long the suspension lasts and how communication with the employee will be maintained.
This reflects the approach I already recommend to clients: suspension should be a considered decision, not an automatic first step in every disciplinary investigation.
Reasonable Adjustments During the Process
The draft Code also specifically addresses reasonable adjustments. Employers already have duties under the Equality Act, but the revised Code would make the need to consider adjustments during disciplinary and grievance procedures much clearer.
Depending on the circumstances, this could include changes to:
- where a meeting takes place;
- how information or documents are provided;
- the format or timing of meetings; or
- the support someone needs to participate effectively.
The practical message is simple: a standard process will not necessarily work for everyone.
Managers May Need More Support
One of the most interesting proposals is the emphasis on training managers, workers and representatives to resolve workplace concerns early.
That makes sense. Telling managers to “deal with things informally” is easy.
Having a difficult conversation with someone about their behaviour or performance, while keeping the conversation constructive and not making matters worse, takes considerably more confidence.
For SMEs, this could be one of the most important lessons from the consultation. You don’t necessarily need more paperwork. You need managers who recognise a problem developing and know how to deal with it.
What Isn’t Changing?
Despite the proposed changes, the foundations of a fair disciplinary or grievance process remain very familiar.
Employers should still:
- deal with issues promptly;
- investigate sufficiently to establish the facts;
- tell the employee what the concern is;
- give them a proper opportunity to respond;
- make a reasonable decision based on the information available; and
- provide an opportunity to appeal where appropriate.
And formal procedures will still have an important place. The emphasis on informal resolution should not be interpreted as an instruction to avoid formal procedures when the circumstances justify them.
Why Does the Acas Code Matter?
The Acas Code isn’t something employers should simply file away with their HR policies. Employment Tribunals take the Code into account in relevant cases and, where it applies, an unreasonable failure to follow it can affect compensation by up to 25%.
That is why having a disciplinary and grievance policy is only part of the picture. The people responsible for applying it also need to understand what a fair process looks like in practice.
What Should SME Employers Do Now?
There is no need to rewrite your handbook while Acas is still consulting.
But there are a few useful questions you can ask yourself now:
- Do managers deal with small problems when they arise, or leave them until they become big ones?
- Would your managers feel confident having an informal conversation about poor performance or inappropriate behaviour?
- Do you automatically suspend employees when serious allegations are made, or consider whether suspension is actually necessary?
- Would you recognise when reasonable adjustments might be needed during a disciplinary or grievance process?
- Do your managers make a brief record of important informal conversations and agreed actions?
If some of those questions make you uncomfortable, you probably don’t need to wait for the new Code before doing something about them.
Kea HR’s View
I like the general direction of the proposed Code. In my experience, many disciplinary and grievance cases haven’t suddenly appeared overnight. There have often been warning signs, conversations that weren’t had or problems that were allowed to drift.
Dealing with something informally when it first arises can be quicker, less stressful and far less damaging to working relationships.
But there needs to be a sensible balance. Informal doesn’t mean ignore it. And it certainly doesn’t mean trying to deal informally with serious allegations that require a proper investigation.
For SMEs, I think the biggest message is not “prepare for another pile of HR paperwork”. It is much simpler:
Deal with problems early. Have the difficult conversation. Keep a sensible record. And know when the situation is serious enough to move into a formal process.
That is good management now, regardless of what eventually appears in the final Acas Code.
Have Your Say
The Acas consultation on the proposed new Code closes at 11:59pm on 23 September 2026.
Employers, employees, HR professionals, trade unions and anyone with an interest in workplace relations can respond before the final Code is produced.
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