Workplace expert, Acas, has launched a consultation on updates to its Code of Practice on disciplinary and grievance procedures to promote early and informal resolution of concerns at work.
The new Code will help employers and workers handle concerns in a fair, transparent and timely way. Employers and workers have rights and responsibilities and handling concerns that come up early and informally can save on costs and stress at work, it says.
Acas research on the annual cost of conflict has found that managing formal disciplinary and grievance procedures is estimated to cost UK employers £2.36 billion a year, while the annual cost of informal resolution is around ten times lower at £250 million.
Acas Chair, Baroness Maggie Jones, said:
“Acas research shows that formal processes can be very costly for everyone involved. Effective early intervention in conflict saves money and time as well as promoting staff wellbeing and productivity.
“Our new Code reflects the benefits of handling work issues early and informally. It will help employers and workers handle concerns in a way that's fair, transparent and timely. I would encourage everyone to take part in the consultation.”
Acas statutory Code of Practice on disciplinary and grievance procedures was last fully revised in 2009. It currently applies where there is potential for disciplinary action to be taken against a worker or where a worker raises a formal concern or grievance with their employer.
The purpose of the Code is to provide employers, workers and representatives with guidance on handling disciplinary and grievance situations in the workplace.
Employment tribunals must take the Code into account in relevant cases and can increase or reduce an award by up to 25% for unreasonable failure to follow the Code by an employer or worker. Size and resources of the organisation are taken into account.
As well as promoting the benefits of informal and early resolution of conflict, the draft updated Code also seeks views on how to improve handling formal procedures.
Acas has also published a new YouGov poll which asked British businesses about what options best help their organisations to resolve workplace conflict informally.
The top three picked were:
- Having a good working relationship with the other person (58%);
- A shared willingness to find a solution (53%); and
- A workplace culture that supports open conversations (52%).
The consultation on the draft Code closes on 23 September 2026. To respond please see: https://www.acas.org.uk/about-us/acas-consultations/code-of-practice-disciplinary-grievance-2026
