ACAS has launched a consultation on the first full rewrite of its statutory Code of Practice on Disciplinary and Grievance Procedures since 2009. The consultation runs until 23 September 2026, the current Code stays in force until a final version is approved and an implementation date confirmed, but it’s worth preparing now.
Why it matters: Employment tribunals must take the Code into account, and can adjust compensation by up to 25% where there’s been an unreasonable failure to follow it.
Key proposed changes
Informal resolution – Employers will be expected to consider an informal conversation before going formal on performance/conduct issues (gross misconduct excluded). Disciplinary and grievance letters must state what informal steps were taken or explain why none were taken
Terminology – “Worker” replaces “employee” throughout, widening scope, though this doesn’t extend unfair dismissal protection to everyone with worker status
Suspension – New guidance makes clear suspension should only be used in limited circumstances
Companions – Employers should consider allowing longer than 5 working days for a rearranged meeting where a companion is unavailable in cases that might result in dismissal
Why now?
ACAS estimates formal disciplinary and grievance procedures cost UK employers £2.36 billion a year, versus around £250 million for informal resolution, the changes are designed to drive earlier, less costly intervention.
The bigger picture
This lands alongside the wider Employment Rights Act 2025 reforms including the drop in the unfair dismissal qualifying period to six months from January 2027, meaning robust, well-documented process will matter earlier in employment than ever before.
What to do now
- Submit your views to ACAS about the draft Code if you wish!
- Review your disciplinary and grievance procedures against the draft Code
- Start building informal resolution into everyday practice ahead of any formal requirement
- Watch this space, we’ll update you once the final Code and implementation date are confirmed