September 2026
ACAS has published a draft new Code of Practice on Disciplinary and Grievance Procedures, the first major overhaul since 2009. The changes are still subject to consultation, but they give a clear steer on the direction of travel: more emphasis on informal resolution, a higher bar for suspension, and new procedural requirements for both employers and employees.
Informal resolution takes centre stage
Informal resolution currently features only briefly in the Code’s Foreword. The draft brings it into the statutory guidance itself, signalling that organisations should actively consider resolving concerns informally before starting a formal disciplinary or grievance process, though serious misconduct, safeguarding concerns and similar matters will still need formal handling.
This matters because Employment Tribunals can adjust compensation by up to 25% for unreasonable failure to comply with the Code. If the draft is adopted as it stands, a failure to consider informal resolution could become relevant to that adjustment, meaning employers will want to document why a formal process was necessary, and employees may have an additional basis for questioning whether it was.
New requirements for disciplinary and grievance correspondence
Two mirrored obligations are proposed: an employer’s letter inviting someone to a disciplinary hearing must explain what informal steps were taken (or why none were appropriate); and an employee raising a formal written grievance must do the same. Organisations will likely need to update template disciplinary correspondence, and employees should expect to address informal resolution when submitting a grievance.
Suspension should only be used where necessary
The draft reinforces that suspension is not a routine step; it should only be used where genuinely necessary, in limited circumstances, reflecting the courts’ established position that suspension is not a “neutral act”. Employers will need to be able to justify suspension and show that alternatives were considered; employees may be more likely to challenge decisions that don’t.
A broader focus on workers
The term employee is replaced with worker throughout much of the Code, reflecting that workplace disputes extend beyond traditional employment relationships. However, the 25% compensation adjustment power remains limited to employee claims under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992.
New guidance on workplace procedures
The draft also adds new sections on reasonable adjustments during disciplinary and grievance procedures and the importance of manager training. Mediation and other facilitated conversations are now suggested as an alternative route to resolution alongside formal procedures.
What happens next?
The consultation closes on 23 September 2026, after which the Government will consider responses before publishing a final Code. There is no immediate need to change existing procedures, but organisations may wish to start reviewing disciplinary and grievance policies, template correspondence and manager training and employees should be aware that informal resolution is likely to carry more weight going forward.
