ACAS has published a new draft Code of Practice on disciplinary and grievance procedures. The new draft code was published on 30 July 2026, and is open to public consultation until 23 September 2026.

The Code was last fully revised in 2009, with some updates made in 2015. ACAS says: “The Code provides employers, workers and representatives with short, principles-based guidance. It is a basis for organisations’ own internal policies and procedures. Employment tribunals must take the Code into account in relevant cases and can, in some types of claims, increase or reduce an award by up to 25% for unreasonable failure to follow the Code by an employer or employee.”

Comments are invited on all aspects of the draft Code.

Employers should note that across the Code when 'must' is used it is to indicate where something is a legal requirement. The word 'should' is used to indicate a strongly recommended step or expectation. The term ‘good practice’ is used to indicate what ACAS considers to be good employment practice.

Key changes to the ACAS new Code of Practice on disciplinary and grievance procedures

The new code is set out across 95 paragraphs, with 'worker' replacing 'employee' throughout. This widens the scope of the code, although it should be noted that the 25% increase or reduction in failure to follow the code is limited to employees. 

Another key terminology change is that the draft Code refers to employer and worker 'concerns' rather than 'disciplinary' and 'grievance' issues when describing informal resolution. For the first time, failure to attempt informal resolution could be factored into this 25% uplift, as this moves from the foreword to the code itself.

There are several new additions including that the draft Code:

• provides additional guidance on suspensions to make it clear they should only be used in limited circumstances
• introduces a new expectation for both workers, and employers, to state when raising a concern, or notifying a worker of a formal disciplinary meeting, what prior steps have been taken to resolve the matter informally.
• adds new guidance requiring workers to suggest, if possible, how they would like their concern to be resolved at the point of raising a written grievance, rather than simply 'allowing' this during a formal grievance meeting as in the existing Code.
• new guidance to reflect an important case law development from 2018 (Talon Engineering Ltd v Smith) which is currently noted in the non-statutory Foreword to existing Code. This made clear that, in some situations, an employer should consider allowing a longer time for a rearranged meeting than 5 working days where a companion is unavailable – as specified by the statutory right of accompaniment – as an unreasonable refusal to postpone a disciplinary meeting may make a dismissal unfair. 
• Includes a new section on mediation and facilitated conversations.

A failure to follow the Code does not, in itself, make a person or organisation liable to proceedings. However, employment tribunals will take the Code into account when considering relevant cases.

 For further information or to discuss how this may affect your business, please get in touch with KKnox@ortolan.com or jjones@ortolan.com