Estimated reading time: 7 minutes
On 30 July 2026, Acas published a revised draft Code of Practice on disciplinary and grievance procedures. This is the first full rewrite of the Code since 2009. The draft Code is under consultation which closes on 23 September 2026.
While some detail may change following consultation, the draft sets out a clear shift in Acas’s approach to managing disciplinary and grievance issues. This article talks you through the changes you need to know.
The changes are significant. The current Code is largely concerned with ensuring a fair process once a disciplinary or grievance procedure has begun. The new draft Code shifts the focus significantly towards managing workplace conflicts early and informally, before they escalate into formal disciplinary and grievance proceedings.
It also introduces important new guidance on reasonable adjustments, suspension, mediation and manager training, and changes some of the terminology and practical steps employers are expected to follow
The biggest change: early and informal resolution
Currently, informal resolution sits in the foreword, which does not form part of the statutory Code. The new draft brings informal resolution within the Code itself, with separate sections on resolving employer and worker concerns informally. This matters because an unreasonable failure (by either the employer or worker) to attempt informal resolution where appropriate may increase or decrease the compensation awarded by an Employment Tribunal by up to 25%.
Where a concern is not fully resolved informally, it may be helpful to meet again to discuss a solution to the issue before escalating to a formal process. This won’t always be appropriate of course, particularly where serious misconduct is alleged.
A notable change is that employers are expected to document and explain:
- the informal steps that were taken before commencing a formal process or
- why informal resolution was not appropriate.
New section: avoiding discrimination, making reasonable adjustments
For the first time, the Code includes a specific section on avoiding unlawful discrimination.
It expressly reminds employers of their obligations under the Equality Act 2010, including the duty to make reasonable adjustments for disabled workers. Examples include providing documents in an accessible format, ensuring meeting venues are accessible and, where appropriate, allowing additional support at meetings.
These duties are not new, but bringing them expressly into the statutory Code makes consideration of reasonable adjustments an important part of managing disciplinary and grievance procedures.
New section: suspension during disciplinary investigations
The draft Code takes a much firmer approach to suspension.
The current Code simply says that a period of suspension with pay should be as brief as possible and kept under review. The draft goes considerably further, making clear that suspension should only be used in limited circumstances and setting out when it may be appropriate.
The limited circumstances include where there is a serious risk that the worker could interfere with the investigation or evidence, pose a risk to others or themselves, or pose a serious risk to the organisation. Employers should consider whether there are reasonable alternatives to suspension before deciding it is necessary.
If suspension is necessary, it should be as brief as possible and kept under review. Employers should explain why the individual is being suspended, make clear that suspension is not disciplinary action and explain what happens next.
The practical message is clear: suspension should not be an automatic response to allegations of serious misconduct.
New section: training and support
The draft Code introduces a new emphasis on training and support to help those dealing with workplace concerns resolve them early and effectively. It is particularly important for line managers to know how to have those difficult conversations. If the emphasis is on preventing concerns escalating into formal procedures, managers need to be able to identify problems early, have those conversations and know when an informal approach is, and is not, appropriate.
Changes to formal disciplinary and grievance procedures
The basic framework of a fair formal procedure remains, but the draft makes several practical changes. In particular:
- fact-finding should be objective, reasonable and proportionate;
- when inviting a worker to a formal disciplinary meeting, employers should state what informal steps have already been taken, or why none were appropriate;
- Workers raising formal grievances are encouraged to provide a short, clear written explanation of their concern and say how they think it should be resolved. This is particularly relevant given the increasingly lengthy and convoluted AI-generated grievances employers and Employment Tribunals are seeing
- employers should continue to consider other ways of resolving the concern even after a formal process has begun; and
- where a worker asks to be accompanied at an informal meeting, employers should consider allowing this where it could help resolve the issue, even where the statutory right to accompaniment does not apply.
New section: mediation and facilitated conversations
The revised draft introduces a new section on mediation and facilitated conversations, neither of which is covered in the existing Code.
Both involve an independent and impartial third party helping those involved to try to resolve the issue. These are voluntary and confidential and can be particularly useful where the underlying problem concerns a working relationship. Facilitated conversations are likely to involve an independent person with the organisation acting as a faciliator, or possibly a trade union representative, rather than an external mediator.
They can be considered at any stage. If mediation or a facilitated conversation is agreed during a formal disciplinary or grievance procedure, the draft says the formal process should be paused while it takes place.They will not be appropriate in every case, and the Code recognises that they may not be available to every organisation.
A change in terminology
“Worker” largely replaces “employee”, potentially widening the practical reach of the Code. Employers whose disciplinary and grievance procedures currently apply only to employees should consider whether those procedures will need to extend to workers.
Acas also deliberately moves away from more adversarial disciplinary language, including terms such as “allegations”, “case to answer”, “penalty” and “first offence”, instead referring more broadly to workplace “concerns” and resolving those concerns. The change in language reflects the wider shift towards addressing workplace conflict constructively and avoiding unnecessary escalation.
What has not changed?
The fundamental principles of a fair formal process remain. Employers should establish the facts, explain the concern and give the worker a reasonable opportunity to respond before making a decision. The existing statutory rights to be accompanied at relevant disciplinary and grievance hearings and to appeal remain unchanged.
Serious misconduct may still need to be dealt with formally from the outset, and a fair disciplinary process should still be followed before any decision to dismiss for gross misconduct.
The draft Code is therefore about much more than how employers conduct disciplinary and grievance procedures. It represents a fundamental shift towards managing workplace conflict earlier, with formal procedures used where necessary rather than as the starting point.
For employers, the biggest risks under the proposed Code will be failing to adapt existing practices to this change in approach.
What should employers do differently?
The revised Code is still in draft, and is not expected to come into force until 2027, so you do not need to rewrite your disciplinary and grievance procedures just yet, but you should start preparing for the change in approach now. Employers should:
- attempt informal resolution where appropriate, before moving to a formal process;
- not automatically suspend an employee while allegations are investigated;
- consider reasonable adjustments throughout the process;
- consider mediation or a facilitated conversation where this could help resolve the issue;
- document why key decisions were made, including why informal resolution was not appropriate or why suspension was necessary; and
- treat formal procedures as the final rather than the first step, where the circumstances allow.
Employers should also consider whether managers have the training and confidence to handle concerns effectively at an early stage.
Once the final Code is published, disciplinary and grievance policies, procedures and template correspondence should be reviewed and updated.
These changes also come shortly before the qualifying period for ordinary unfair dismissal reduces from two years to six months on 1 January 2027. With employees gaining unfair dismissal protection much earlier, effective probation management and the early and proper handling of workplace concerns will become increasingly important.
For practical steps employers should be taking now, see our guide to managing probationary periods under the six-month unfair dismissal regime.
If you need help reviewing your disciplinary and grievance procedures, managing a workplace concern or preparing for the changes, please get in touch.