Acas consults on a revised Code of Practice: the first step in reforming employment disputes?
Acas has launched a consultation on a substantially revised draft Code of Practice on disciplinary and grievance procedures.
For decades, the Acas Code of Practice on disciplinary and grievance procedures has shaped how workplace disputes are managed. As the title suggests, it sets out the procedures employers and their staff should follow when handling disciplinary matters and grievances, with the aim of ensuring that issues are dealt with fairly and consistently. A failure to follow the Acas Code does not give rise to a standalone claim, but may affect the fairness of a dismissal and result in an uplift (or reduction) of up to 25% on compensation awarded by an Employment Tribunal.
The revised draft introduces several substantial changes, and consultation on the revised Code is now open. The most significant is a new, strong emphasis on informal resolution. The current Code deals only with formal disciplinary and grievance procedures. The revised draft includes new sections on informal resolution and mediation, places clear obligations on both employers and staff to look to resolve issues early, and requires documents commencing formal procedures to record the steps taken towards informal resolution. It also encourages employers to provide training for managers and staff on effective early dispute resolution. If the changes are implemented as proposed, Employment Tribunals would, for the first time, have the power to adjust compensation where there has been no genuine, constructive attempt to resolve a workplace dispute.
The proposals are particularly significant in the context of wider calls to reform the legal framework for employment disputes. Against the backdrop of worsening Tribunal backlogs, the Employment Lawyers’ Association recently brought forward a range of reform proposals, which included revising the Acas Code to shift the focus towards informal resolution, as well as wider reforms to early conciliation and employment litigation. The revised Code may therefore be only the first step in a fundamental overhaul of the employment disputes landscape.
Other proposed revisions to the Code include new sections on reasonable adjustments and suspension, a shift towards a less adversarial tone and the replacement of references to ‘employees’ with ‘workers’. Interestingly, the consultation also invites proposals on whether, and if so how, the Code should address the use of generative AI in employment disputes. Generative AI, particularly in the preparation of grievances, presents a growing challenge for managers and HR professionals, with the 60-page grievance becoming an increasingly familiar phenomenon. Clear, practical parameters for its use in this context would therefore be a welcome addition to the Code.
The consultation closes on 23 September 2026. We will provide further guidance about the practical implications once the revised Code is finalised.
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