ACAS has released its first full rewrite since 2009, replacing the 2015 amended Code of Practice on Disciplinary and Grievance Procedures, and the changes are significant. Although still in draft form, the new Code signals a clear shift in expectations around fairness, transparency, and early resolution in workplace disputes.
Below is a practical breakdown of the key changes and what they mean for your organisation.
1. Informal Resolution moves centre stage
One of the most important updates is that informal resolution is now part of the statutory Code, rather than just mentioned in the Foreword. ACAS confirms that the Foreword does not form part of the statutory Code, which makes the inclusion of informal resolution within the Code itself a significant shift.
ACAS also clarifies the meaning of “must”, “should”, and “good practice” in the Foreword helping employers understand which parts are legal requirements, and which are strong expectations.
Why this matters
Under s207A TULR(C)A 1992, tribunals can increase compensation by up to 25% if an employer unreasonably fails to follow the Code. With informal resolution now inside the Code, not attempting informal steps could contribute to that uplift for the first time.
2. New requirements for invitation letters
ACAS now expects disciplinary invitation letters and grievance acknowledgment letters to include:
- What informal steps were taken, or
- Why informal resolution was not appropriate.
This is a major shift in documentation standards.
3. Suspension: a new “Necessity Test”
The draft Code reinforces existing case law: suspension is not a neutral act.
Key change
Suspension should only be used where necessary, and employers must consider:
- Alternatives (e.g., temporary redeployment, adjusted duties)
- The impact on the worker’s wellbeing
- Whether suspension is proportionate to the allegation
4. Terminology Shift: “Worker” replaces “Employee”
Throughout the draft Code, ACAS now uses “worker” instead of “employee”.
Why this matter
This widens the scope of who the Code applies to including casual staff, bank workers, and some contractors.
However, the 25% uplift for failure to follow the Code still only applies to employees, because that is set by legislation, not ACAS.
5. New Sections: Adjustments, Training, and Mediation
The draft Code introduces several new areas that reflect modern workplace expectations.
Reasonable Adjustments
Employers must consider adjustments for:
- Disability
- Neurodiversity
- Health conditions
- Language or communication needs
This applies to every stage of the process, meetings, evidence, timelines, and representation.
Manager Training
ACAS emphasises that managers must be:
- Properly trained
- Competent to run fair processes
- Supported by HR
This signals a shift away from “process-only” compliance towards capability and judgement.
Mediation and Facilitated Conversations
A new section encourages:
- Mediation
- Facilitated discussions
- Pausing formal processes while mediation takes place
This reinforces the Code’s new focus on early resolution and reducing adversarial conflict.
What should employers be considering in preparation for these changes?
- Review and update your policies to ensure disciplinary, grievance, and suspension policies reflect the new Code.
- Review which processes the Code applies to, it does not cover redundancy or the non‑renewal of fixed‑term contracts.
- Updating all template letters including informal steps taken and reasons informal resolution wasn’t appropriate
- Train your managers with a focus on informal resolution skill, suspension decision-making; adjustments and accessibility; running fair and consistent processes.
- Strengthen documentation, tribunals increasingly expect clear, contemporaneous records. The new Code reinforces this.
- Consider mediation options, internal or external mediation may become a more common expectation.
The new ACAS draft Code represents a cultural shift from process compliance to proactive, fair, and human-centred resolution.
The code is said to come into force early 2027 and we will continue to monitor updates as the Code moves through consultation and into final publication.
Our existing retainer/essential clients need not worry, we will review your documents when the time comes.
If you would like support reviewing your policies, updating your templates, or training your managers, we can help.