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ACAS has launched a consultation on a draft revised Code of Practice on disciplinary and grievance procedures. The proposal is the first full revision of the Code for many years and signals a clearer shift towards resolving workplace concerns early, informally and fairly.

Importantly, this is not yet a final Code in force. The consultation remains open until 23 September 2026. ACAS will consider responses before submitting any final version for government approval and Parliamentary process. Employers should nevertheless use the draft as an opportunity to assess whether their current procedures, documentation and manager capability are ready for the direction of travel.

The central change: resolve concerns early where appropriate

The proposed Code places much greater emphasis on informal resolution as a first resort. Rather than moving immediately into disciplinary or grievance procedures, employers and workers would be encouraged to explore proportionate informal options first where suitable.

This does not mean formal action should be avoided in every case. Serious allegations, including potential gross misconduct or safeguarding concerns, may still require prompt formal investigation and action.

Key proposed changes

1. Informal resolution becomes more prominent

Under the draft Code, employers should actively consider whether an issue can be addressed informally before beginning a formal disciplinary process.

Importantly it notes that any formal invitation should explain the informal steps that have been taken or why they were not appropriate. It also states that informal conversations should not, by themselves, result in formal action. The Code suggests that informal resolution may include conversations, support from a worker or union representative, mediation or facilitated discussion.

This change matters because informal resolution would sit within the statutory Code itself, rather than only in supporting material (as was previously the case). In relevant tribunal cases, a failure to follow the Code unreasonably can affect compensation.

2. Greater focus on equality and reasonable adjustments

The draft expressly highlights the need to avoid unlawful discrimination and to consider reasonable adjustments throughout disciplinary and grievance processes.

Employers should consider adjustment needs early, rather than waiting until a hearing or investigation is already under way.

4. Mediation and facilitated conversations

The draft introduces a specific section on mediation and facilitated conversations. Where both parties agree, these approaches may be used to seek a constructive resolution.

If mediation is used during a formal disciplinary or grievance procedure, the draft proposes that the formal process should be paused while the mediation or facilitated discussion takes place.

Mediation will not be suitable for every matter, particularly where there are serious allegations or safeguarding risks. However, it may be a useful tool in relationship breakdown, communication and lower-level conflict cases.

5. “Worker” rather than “employee”

The draft generally uses the term “worker” to reflect a broader range of people in the workplace. However, the tribunal power to adjust certain compensation awards by up to 25% for an unreasonable failure to follow the Code remains linked to employees in the relevant claims.

What employers should do now

Although the Code remains in draft, employers should take practical preparatory steps now.

Review disciplinary and grievance policies

• Check whether they encourage informal resolution where appropriate.

• Make clear when formal action is necessary.

• Include suitable wording on reasonable adjustments, suspension and mediation.

Update template letters and forms

• Add a section to disciplinary invitations recording informal steps taken, or why none were suitable.
• Consider updating grievance forms or guidance to invite a concise explanation of the concern, previous informal steps and the preferred outcome.

Introduce clear decision records

• Record why an informal approach was used, rejected or unsuccessful.
• Document suspension decisions, alternatives considered and review dates.
• Maintain clear notes of adjustments requested and agreed.

Train line managers and HR teams

• Equip managers to handle concerns early and constructively.
• Reinforce the distinction between informal conversations, investigations and formal action.
• Ensure managers understand when to seek HR or legal input.

Strengthen reasonable-adjustment processes

• Ensure employees know how to request adjustments.
• Provide managers with practical guidance on responding promptly and appropriately.

Consider mediation resources

• Decide whether mediation can be delivered internally, through trained staff, or by an external provider.
• Identify the types of situations where it may be appropriate.

Why this matters

The proposed changes reinforce an expectation that employers should demonstrate fair judgement throughout the life of a workplace issue, not simply run a technically correct formal hearing which is predominantly the case in many businesses.

Employment tribunals must take the ACAS Code into account in relevant cases. Where an employer or employee unreasonably fails to follow it, tribunals can adjust certain awards by up to 25%. The draft’s stronger focus on informal resolution, documented decisions, suspension and reasonable adjustments may therefore increase scrutiny of everyday people management decisions.

Final thought

The draft code does not require employers to formalise every workplace conversation. Its direction is instead toward resolving issues early, proportionately and transparently while retaining formal procedures for cases that genuinely require them.

A timely policy review, refreshed templates and focused manager training will place employers in a stronger position if and when the revised code comes into force.