ACAS has launched a consultation on a new Code of Practice on Disciplinary and Grievance Procedures, marking the first full rewrite of the Code since 2009. The proposed reforms are intended to address a striking statistic. According to ACAS, formal disciplinary and grievance procedures cost UK employers approximately £2.36 billion every year. ACAS believes that many workplace disputes could be resolved earlier and at significantly lower cost through informal discussions, mediation and workplace intervention. For employers, this is more than a policy discussion.
Employment Tribunals take the ACAS Code into account when considering whether workplace procedures have been conducted fairly, and a failure to comply with the Code can result in compensation being increased or reduced by up to 25%.
If implemented in its current form, the new Code could require many employers to rethink how they approach workplace concerns.
Early Resolution
The most significant change is the move away from process for process’ sake and towards resolving issues before they escalate. The current Code briefly acknowledges that workplace concerns can often be resolved informally. The draft Code, however, goes much further, introducing a framework for early intervention. Employers will be expected to engage with concerns promptly, have meaningful conversations with workers and explore options such as training, support measures, reasonable adjustments and mediation before moving to formal procedures where appropriate.
Handling Workplace Concerns
The draft Code introduces a new section setting out the principles that should apply when concerns arise at work. Both employers and workers are encouraged to address issues promptly, communicate openly and seek to prevent unnecessary escalation. Employers are expected to establish the facts, act reasonably and allow workers an opportunity to respond.
The inclusion of these principles is significant and demonstrate ACAS’ intention to place workplace resolution at the heart of disciplinary and grievance procedures.
Equality Act Considerations
For the first time, the Code includes a dedicated section dealing with Equality Act obligations. The draft reminds employers of the need to make reasonable adjustments throughout disciplinary and grievance processes. This may include ensuring meeting venues are accessible, providing documents in alternative formats, arranging interpreters or allowing support workers to attend meetings. These obligations are not new, but, their inclusion within the Code means employers will need to consider equality issues from the outset, rather than treating them as a separate consideration.
Some Changes Employers Should Be Aware Of
Whilst much of the formal disciplinary procedure remains unchanged, several practical changes stand out:
- Employers may be required to explain what informal steps have been taken before commencing formal disciplinary proceedings.
- Suspension should only be used where necessary to protect an investigation, the organisation, other workers or legal compliance obligations.
- Workers raising grievances may be expected to outline the steps they have already taken to resolve the issue informally and identify their preferred outcome.
- Equality Act provisions are now at the forefront of the ACAS Code. Employers must expressly consider adjustments, accessibility, interpreters and support workers.
Mediation is Important
A key message from the draft Code is the importance ACAS places on mediation. For the first time, mediation and facilitated conversations have their own dedicated section. Mediation can be proposed at any stage and, where agreed, formal procedures should generally be paused while the process takes place. This reflects ACAS’ wider objective of encouraging employers and workers to resolve disputes, rather than simply managing them through increasingly formal procedures.
How we can help
Historically, the focus has been on whether employers followed a fair process. The proposed Code suggests that tribunals may increasingly ask a different question: what did the employer do to prevent the issue from escalating in the first place?
Employers should therefore use the consultation period as an opportunity to review policies, procedures and management training. If the draft Code is implemented in its current form, informal resolution, mediation and reasonable adjustments are likely to become central features of effective workplace dispute management rather than optional considerations.
If you need help aligning your policies with the proposed ACAS reforms, please contact a member of our Employment Team.
