What employers need to know
Every organisation will, at some point, need to deal with a workplace concern, disciplinary issue or grievance. How these situations are handled can have a significant impact on employee relations, management time and the wider business.
The ACAS Code of Practice on Disciplinary and Grievance Procedures has long provided practical guidance for employers and employees. ACAS has now published a significantly revised draft Code for consultation – the first major revision since 2009.
The proposed changes place greater emphasis on early intervention, informal resolution, transparency and manager capability.
The key message for employers is simple: not every workplace concern needs to become a formal disciplinary or grievance. Where appropriate, resolving issues early may be better for everyone.
The revised Code is currently only a draft and is not yet in force. The consultation closes at 11:59pm on 23 September 2026, after which ACAS will consider responses before deciding on the final Code and progressing it through the Parliamentary approval process.
Why is ACAS proposing these changes?
Formal workplace procedures can be costly and time-consuming for both employers and employees. ACAS research estimates that formal disciplinary procedures currently cost UK employers around £2.36 billion each year, compared with approximately £250 million for informal procedures.
The proposed changes therefore reflect a clear shift towards addressing workplace concerns at the earliest reasonable opportunity. This does not make formal disciplinary and grievance procedures less important. Instead, the draft Code encourages employers to consider whether an issue can be resolved constructively before entering a formal process, while retaining formal procedures where they are necessary.
A stronger focus on informal resolution
One of the most significant proposed changes is the emphasis on informal action before formal action. Where appropriate, employers are encouraged to address concerns early by explaining the issue, listening to the employee and discussing possible ways forward.
Depending on the circumstances, this could involve: an informal conversation; clarifying expectations or workplace standards; providing feedback or additional support; agreeing practical steps to resolve the concern; or using mediation or a facilitated conversation. Importantly, informal resolution does not mean ignoring a problem.
Employers should still take concerns seriously and engage constructively with employees. The draft Code also recognises that informal does not mean undocumented. Where informal steps are taken, employers should keep an appropriate record of what was discussed, what was agreed and what happens next.
If a matter subsequently moves to a formal process, those informal steps should be documented, or the employer should be able to explain why informal resolution was not appropriate. For example, a serious allegation of potential gross misconduct may justify moving directly to a formal process. The important point is that the employer should be able to demonstrate why that approach was reasonable.
Formal procedures still matter
The proposed Code does not remove the need for formal disciplinary or grievance procedures. Where informal resolution is inappropriate or unsuccessful, employers will still need to follow a fair and structured process. This includes establishing the facts, giving the employee an opportunity to respond and making a reasonable decision based on the information available.
The draft Code therefore encourages a proportionate approach: early intervention where appropriate, but a robust formal process where circumstances require it. Employees will also continue to have their statutory right to be accompanied at qualifying disciplinary hearings.
Suspension should be used carefully
The draft Code provides greater clarity around suspension during disciplinary investigations. Suspension should only be used where it is reasonable and should not automatically follow a serious allegation. Employers should consider whether suspension is genuinely necessary and ensure that it is communicated appropriately. Suspension is not a disciplinary sanction in itself, and unnecessary or poorly managed suspension can have a significant impact on employee wellbeing, trust and morale.
Reasonable Adjustments and Fairness
The proposed Code also reinforces the importance of considering individual circumstances throughout disciplinary and grievance procedures. Employers should consider whether reasonable adjustments are needed for employees with disabilities. This could include adjustments to meeting arrangements, communication methods or documentation. Considering these needs is important to ensure employees can participate fairly in workplace procedures and are not placed at a disadvantage because of a disability.
Grievances: Ensouraging earlier conversations
The proposed changes also encourage employees, where possible, to try to resolve concerns informally before raising a formal grievance. Where a formal grievance is necessary, employees may be expected to explain what informal steps they have already taken, or why informal resolution was not possible.
They are also encouraged to explain how they would like their concern to be resolved. However, employers should not dismiss an informal complaint simply because it has not followed the formal grievance procedure. Informal concerns should still be taken seriously, and resolving an issue may require more than one conversation or the use of mediation.
What does this mean for the employer?
Although the revised Code is still subject to consultation, employers can use this opportunity to review their current approach.
1 ) Review your disciplinary and grievance policies Make sure they clearly distinguish between informal and formal procedures while allowing sufficient flexibility to deal with different circumstances.
2 ) Review how informal concerns are handled Consider whether managers know how to have constructive conversations and when concerns should be escalated.
3 ) Strengthen documentation Ensure there is an appropriate record of informal conversations, investigations, meetings and decisions without creating unnecessary bureaucracy.
4 ) Train your managers Managers should feel confident addressing workplace concerns early and knowing when HR support is required. Consider alternative resolution options Mediation and facilitated conversations may sometimes resolve workplace conflict more effectively than a formal process.
5 ) Review reasonable adjustment arrangements Make sure managers understand their responsibilities when an employee may need additional support to participate fairly in a workplace procedure.
What happens next?
The consultation on the proposed revised Code remains open until 11:59pm on 23 September 2026. The revised Code is not currently in force, so employers do not need to immediately rewrite their policies to reflect the draft. However, the proposals provide a useful indication of the direction of travel and an opportunity for employers to consider whether their current policies, processes and management practices are ready for a greater focus on early resolution.
The Fig-HR view
The proposed revisions represent a significant shift in how workplace conflict is approached. The emphasis is moving away from automatically progressing towards formal procedures and towards early conversations, constructive resolution and proportionate action.
For employers, this does not mean avoiding formal processes when they are necessary. It means making sure formal action is used for the right reasons, at the right time, after considering whether the issue could reasonably have been resolved earlier.
There is also a wider business benefit. Resolving workplace concerns early can reduce management time, minimise disruption and help preserve working relationships. While employers do not need to take immediate action on a draft Code that has not yet been finalised, now is a sensible time to review policies, consider manager training and think about how workplace conflict is handled within the organisation.
At FIG-HR, we can support employers with reviewing disciplinary and grievance procedures, training managers and providing practical HR advice when workplace concerns arise. If you would like support reviewing your current HR processes ahead of the proposed changes, please get in touch with the FIG-HR team.
Telephone: 0330 0436 707 or email flex@fig-hr.com for further support or guidance
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