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Formal procedures as a last resort? Acas consults on revised statutory disciplinary and grievance Code of Practice

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Over the summer Acas launched an eight-week consultation on a substantially revised statutory Code of Practice on disciplinary and grievance procedures (“the Acas Code”). It is said that the consultation represents the largest rewrite to the Acas Code since 2009, with a broader aim of shifting focus to informal resolutions of workplace disputes intended to take pressure off the overloaded employment tribunal system. The consultation closes on 23 September 2026.

The current statutory Acas Code

As all employers are likely aware, employment tribunals are required to take the Acas Code into account in relevant claims when determining the compensation that should be awarded and can increase or reduce awards by up to 25% for a party’s unreasonable failure to follow it. Accordingly changes to the Acas Code have significance that goes beyond best-practice guidance, where the Acas Code affects both workplace procedures and employment tribunal outcomes.

Why is Acas proposing the changes?

The proposed reforms reflect a broader shift away from a framework focused primarily on managing formal disciplinary and grievance processes and towards one that encourages early intervention, constructive dialogue and informal resolution wherever possible, including by way of workplace mediation. Acas reports that its research estimates the annual cost of formal disciplinary and grievance procedures to UK employers at approximately £2.36 billion each year, with 44% of working-age adults in Great Britain experiencing conflict at work in the last year.

The current Acas Code is arguably out of date, having come into force in April 2009. It is reasonably necessary to review and update it to bring it in line with the modern workplace.

What are the proposed changes?

Broader scope to included “workers”

The proposed changes broaden the scope of the Acas Code from traditional “employees” to include all “workers”. This will mean that a larger proportion of the workforce will likely be covered, including agency workers and zero hours workers who are now very likely to be covered.

Informal resolution of workplace disputes

The draft Acas Code expressly encourages informal resolution including practical discussions, early conversations and constructive problem-solving. Accordingly, the employment tribunal can give weight to informal resolution efforts when assessing reasonableness. Acas is clear that informal resolution should mean genuine early conversations, rather than rebadging existing processes under another name. Acas is further exploring the role of worker representatives in facilitating discussions, as well as confirming informal outcomes in writing.

New expectations on employers and workers

Employers would need to explain what informal steps have been taken to resolve the issue before progressing to a formal disciplinary meeting (or indeed, why none were taken). Similarly, workers raising formal grievances would need to explain what informal resolution efforts have been made or why an informal approach was not possible / appropriate. Lengthy, complex grievance submissions are discouraged in favour of a short initial explanation of concerns, with further information provided later as required.

A move towards less adversarial language

The revised draft Acas Code seeks to reduce legalistic and confrontational terminology, in favour of the term “concerns” during informal resolution. Acas argues that language can shape workplace behaviour and is seeking views on whether the revised language strikes the right tone, including whether the title of the draft Acas Code itself should be reconsidered to reflect its broader focus.

Equality, inclusion and training

For the first time, the draft Acas Code expressly deals with avoiding unlawful discrimination, reminding employers of their obligations under the Equality Act 2010. Workers are also encouraged to raise any reasonable adjustments as early as possible. The draft Acas Code flags the importance of manager and employee training in effectively managing workplace conflict.

Changes to formal disciplinary and grievance procedures including suspension and mediation

The draft Acas Code clearly shifts the focus to effective investigation processes. In particular, the draft Acas Code emphasises that investigations must be objective, proportionate and solution-focused. Poorly handled investigations can unnecessarily intensify disputes and adversely affect workers, managers, HR teams and witnesses.

The draft Acas Code further reminds employers that suspension should be a last resort, used in limited circumstances with clear guidance on how suspension decisions should be communicated. Acas encourages the use of mediation and facilitated conversations, adding a new section on these underutilised processes.

Accompaniment rights and emerging issues

Drawing on recent case law, the draft Acas Code addresses the right of workers to be accompanied, including recognising postponements beyond five working days may be needed where a chosen companion is unavailable, and suggests allowing accompaniment at informal meetings even without a statutory right. Acas is also asking whether the draft Acas Code should address the use of AI in disciplinary and grievance processes.

Impact on Schools and Multi-Academy Trusts (“MATs”)

The proposed amendments to the Acas represent more than a technical update – they reflect a broader culture shift in the employment landscape and employers should expect substantial changes. Schools and MATs can prepare by focusing on informal resolution processes, and be prepared to evidence those efforts, noting this may influence how employment tribunals assess reasonableness. Fortunately, most schools and MATs with properly drafted and legally checked policies should already operate an informal stage to their workplace procedures. A review of such policies and procedures will still be required, once the updated Acas Code is in its final form, particularly to ensure these policies reflect the broadening scope covering workers as well as employees. The change in scope also means that any disciplinary process relating to a worker will need to be compliant with the Acas Code.

Although the focus on informal resolution is welcome, schools and MATs may well still find an uptick in grievances and disciplinary processes as a greater proportion of the workforce will be covered by the Acas Code (i.e. potentially all workers). We also expect an increase in the demand for independent investigation and Schools and MATs should budget accordingly.

For Schools and MATs, the consultation is a reminder that successful employee relations increasingly depend on communication, managerial competence and workplace culture as much as compliance with procedural rules. If adopted, the draft Acas Code is likely to place greater scrutiny on how Schools and MATs investigate concerns, use suspension, consider mediation and support employees through fair and inclusive processes. Manager training and workplace culture will be as important as procedural compliance.

This briefing is not intended to be a definitive statement of the law and is correct at the time of publication. It should not be taken as a substitute for professional legal advice. It does not represent the views of Winckworth Sherwood or any of the authors.

If you require further advice or assistance regarding the proposed changes to the Acas Code, or any other HR or employment law issue your school is facing, or you wish to discuss our retainer packages for schools, please contact our dedicated Schools HR team on schoolshr@wslaw.co.uk or 0345 026 8690.

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