Acas have recently published their new draft Code of Practice on Disciplinary and Grievance Procedures. This lengthy document includes various amendments to keep up with the ever-changing realm of employment law. Much of the new draft Code’s focus appears to be on how employers can approach different ways to reach a resolution to disputes in the workplace and avoid escalation and the employment tribunals. This has likely come about due to the recent Acas research showing that 44% of working-age adults in England, Scotland and Wales have experienced conflict at work within the last twelve months, so it is clearly an issue in workplaces these days. Not only that, focusing on informal resolutions saves the employers time and money, and could lead to a better workplace environment.
Some changes which may be of importance to employers are:
- A focus on dealing with matters informally, and introducing a failure to attempt to resolve matters informally as a possible factor into the 25% uplift in compensation if a claim is successful at tribunal (depending on the circumstances);
- All disciplinary invitation letters and grievance letters must state what informal steps were taken by the employer or, if relevant, why none were taken;
- Introducing a new “necessity test” for suspension, stating that suspension should only be using in limited circumstances, such as in order to protect the investigation, the organisation, other workers or the person under investigation. The draft Code states that there should be a greater focus should be on objective investigations and looking at alternative approaches to resolution;
- Widening the scope of the Code to replace the term “employee” with “worker” throughout much of the Code, strengthening the rights of workers. However, the draft Code confirms that the employment tribunals’ power to uplift compensation will continue to only apply to employees; and
- Introducing new guidance on reasonable adjustments (particularly for disabled workers), manager training, and emphasising the importance of mediation and facilitated conversations.
The Code is only in its draft form at the moment whilst it is under a public consultation, which ends on the 23 September 2026. What it will look like in its final form is unclear, but it will likely be amended once responses has been received. Once the Code has been finalised, employers’ will need to review and update their policies and handbook, and arrange any appropriate training for managers in order to avoid a potential 25% uplift in compensation if an employee successfully raises an employment tribunal claim.
