ACAS Draft New Code on Disciplinary and Grievance Procedures

ACAS have published a draft Code on 30 July 2026, which will replace the 2015 ACAS Code on disciplinary and grievance procedures when the Code is finalised at the end of September 2026. The new ACAS Code proposes the following changes:

Failure to follow Code Guidance can result in a reduction of an Employee’s Tribunal Compensation

1. If an employee has unreasonably failed to follow Code guidance, then a tribunal judge can reduce a tribunal compensation award by up to 25%; and

Workers with a Disability and Use of Interpreters

2. Workers with a disability are entitled to bring a support worker to any disciplinary meeting or grievance meeting, and also any informal meetings or disciplinary investigation interviews;
3. Employees for whom English is a second language should be offered an interpreter for grievance meetings and disciplinary meetings, and other informal meetings, if this is necessary to facilitate full participation in the meeting by the worker.

Code Guidance for Some Other Substantial Reason Dismissals

4. If an employee is charged or convicted of a criminal offence – the employer should consider whether the charge or conviction impacts on the worker’s suitability to do the job or their relationships with work colleagues or customers (Para 52).

Recommended increased involvement of trained worker representatives in workplace dispute resolution

5. Employers should consider arranging dispute resolution training for volunteer workplace representatives – who can be available for workers to discuss concerns – so that these workplace representatives can support employees with a view to an employee’s concerns/complaints being resolved at an early stage (Para 56).
6. Employers should consider appointing and training volunteer workplace representatives – where there is no formal union presence – to assist employees or to support employees with resolving disputes informally.
7. It is good practice for employees to be made aware of the option to discuss their complaints with a workplace representative.

Guidance on when Grievances and Disciplinary Processes are linked

8. Grievance managers should consider pausing grievance meetings if additional fact finding is required (para 67).
9. Employers should consider pausing a disciplinary process if an employee raises a grievance about that process – but where a grievance and a disciplinary process are linked – it may be appropriate for an employer to deal with both processes concurrently.

New Guidance on use of suspensions

10. Decisions to suspend an employee should be communicated to the affected employee in private.
11. The draft Code records that suspension is not a neutral act and that it needs to be justified by reason of it being necessary to protect the integrity or ensure the confidentiality of a disciplinary investigation; or to protect the employer’s business; or to protect work colleagues or the employee under investigation.

The Code recommends that both parties make efforts to resolve disputes informally

12. Mediation or facilitated conversation with third party facilitators or trained independent mediators should be considered as a route for informally resolving workplace disputes – and formal process can be paused to schedule mediation or facilitated conversations (para 58).
13. Employers should consider appointing and training (with external trainers) volunteer workplace representatives – where there is no formal union presence – to assist employees or to support employees with resolving disputes informally. Employees should be able to access policies and procedures.
14. Apart from cases of gross misconduct, the employer will need to show that they have tried to resolve disciplinary or performance issues informally before starting a formal process. Likewise, employees, before filing a formal grievance, will normally need to show that they have tried to resolve their complaint or concern informally with HR or a line manager.

How can we help?

The draft ACAS Code contains significant changes that may require employers to review disciplinary, grievance and workplace dispute resolution procedures. If you would like advice on preparing for the new Code or updating your HR policies and practices, please contact a member of our employment team.