Acas draft Code signals major shift towards informal resolution

Acas has published a draft of a new Code of Practice on disciplinary and grievance procedures, representing the first substantial overhaul of the Code since 2009. The proposed changes reflect a clear policy objective: encouraging employers and employees to resolve workplace issues earlier and reducing the escalation of conflict into formal processes.

The consultation closes on 23 September 2026. If adopted, Employment Tribunals will continue to take the revised Code into account, and unreasonable failures to comply may result in compensation awards being increased or reduced by up to 25%.

Early resolution

The most significant proposed change is the emphasis on informal resolution.

Under the current Code, informal discussions are encouraged as good practice but sit largely outside the statutory framework. The draft Code changes that position by expressly recognising informal resolution as an expected first step for both employer concerns, such as performance or conduct issues, and employee concerns, such as complaints or workplace disputes.

Employers and employees are encouraged to raise issues early and seek to resolve them before matters escalate into formal disciplinary or grievance procedures.

This means employers may increasingly need to show they considered whether issues could be addressed informally before starting formal procedures. Formal disciplinary or grievance processes will remain necessary in many situations, particularly where allegations are serious or dismissal is a possible outcome, but the draft Code clearly promotes an “informal first” approach wherever appropriate.

The draft Code expressly states that an informal conversation should not itself result in a formal disciplinary warning or other disciplinary sanction. Potential outcomes might include clarifying expectations, additional training, reasonable adjustments, or mediation.

A notable practical change is that, where a formal disciplinary or grievance meeting is convened, the draft Code states that the employee should be informed of the efforts made to resolve matters informally, or given an explanation of why no informal steps were appropriate. This is likely to require employers to think more carefully about documenting informal conversations and interventions. In practice, managers may need to record what was discussed, what support was offered and why matters subsequently progressed to a formal process.

Mediation

For the first time, the draft Code includes specific provisions on mediation and facilitated conversations.

Acas envisages using mediation at any stage of a workplace dispute, including before a formal procedure begins, during an ongoing process, or even after a formal outcome has been reached. In appropriate cases, mediation may pause a formal disciplinary or grievance process while parties explore whether a neutral third party can help resolve matters.

Although mediation is not suitable in every case, particularly where serious misconduct allegations require a decision, the draft Code indicates that employers should actively consider whether mediation may help resolve workplace conflict.

Manager training

The draft Code introduces an expectation that organisations provide training and support to help managers, employees and representatives develop the skills needed to resolve concerns at an early stage.

This reflects a recognition that early conflict resolution depends on managers having the confidence and capability to address issues promptly through constructive conversations, rather than allowing concerns to escalate into formal disputes.

Suspension

The draft Code contains more detailed guidance on when suspension should be used.

Employers are advised to suspend only where necessary, for example to protect an investigation, safeguard other staff, protect business interests or comply with legal obligations. Employers are reminded that suspension is not disciplinary action and should be regularly reviewed and kept as short as possible. This reflects the increased scrutiny of suspension in recent years and reinforces the need for employers to carefully consider whether suspension is genuinely justified.

Equality Act considerations

The draft Code places greater emphasis on employers’ obligations under the Equality Act 2010. It specifically highlights the importance of reasonable adjustments during disciplinary and grievance processes. Examples include accessible venues, alternative document formats, interpreters and allowing additional support at meetings where appropriate. Employers are encouraged to consider reasonable adjustments at an early stage and ensure they are recorded appropriately.

Tackling lengthy grievances

One interesting feature of the draft Code is its focus on encouraging employees to raise concerns clearly and concisely. Workers are encouraged to explain their concerns in a way that enables employers to understand and resolve them, and Acas suggests a short written explanation will often be sufficient initially.

Employers may welcome this, given increasingly lengthy and complex grievances, particularly as AI-generated correspondence becomes more common. While the draft Code does not directly address AI, some of its provisions appear designed to encourage more focused and constructive workplace dialogue.

What does this mean for your business?

Although the consultation remains ongoing, you should consider:

• whether managers are equipped to deal with workplace concerns informally
• whether existing policies encourage early resolution
• how informal discussions are documented
• how reasonable adjustments are considered during workplace processes.

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