Acas Draft Code of Practice on Disciplinary and Grievance Procedures: What's Changing in 2026

Acas has published a new draft Code of Practice on Disciplinary and Grievance Procedures for consultation, it's the first full rewrite of the Acas Code since 2009. For HR teams and business owners, this matters: the Acas Code sits at the heart of how disciplinary and grievance cases are handled in the UK and failing to follow it can increase an employment tribunal award by up to 25%.

Below, we explain what's changing in the draft Code, why it matters, and what employers should start doing now ahead of the consultation closing on 23 September 2026.

1. Informal Resolution Becomes Part of the Statutory Acas Code

Currently, encouragement to resolve issues informally sits only in the Foreword to the Acas Code, a supporting document, not the Code itself. Under the draft, informal resolution becomes part of the statutory Code for the first time.

Why it matters: Because the 25% uplift in tribunal compensation applies to failures to follow the Code, a failure to attempt informal resolution could now factor into that uplift. Employers who jump straight to a formal disciplinary or grievance process, without first trying to resolve matters informally, may be exposed to increased tribunal risk in a way they weren't before.

2. New Requirement: Disciplinary and Grievance Letters Must Reference Informal Steps

The draft Code introduces a new requirement for both disciplinary invitation letters and grievance letters: they must set out what informal steps were taken to resolve the issue, or explain why none were taken.

Why it matters: This turns informal resolution from good practice into a documented, evidenced requirement. HR teams should review and update standard disciplinary and grievance letter templates now, so practice doesn't lag behind the paperwork once the final Code is confirmed.

3. Suspension: A New Necessity Test for Employers

The draft Code introduces a necessity test for suspension, formally codifying existing case law that suspension is not a neutral act. Under the new approach, suspension should only be used in limited circumstances.

Why it matters: Employers who default to suspension as a standard first step in disciplinary matters will need to rethink that approach. The direction of travel from case law, and now from the Code itself, is that suspension must be justified as necessary, not used as a routine precaution.

4. "Worker" Replaces "Employee": But the 25% Uplift Stays Employee-Only

The draft Code replaces the term "employee" with "worker" throughout, widening the scope of who the Code applies to.

Why it matters: This is a meaningful extension of the Code's protections and expectations to a broader workforce. However, it doesn't change everything: the 25% uplift power itself remains employee-only, under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992. So while the Code's guidance will apply more broadly, the compensation consequence for breaching it is still tied to employment status, a distinction employers will need to keep straight.

5. New Sections on Reasonable Adjustments, Manager Training and Mediation

The draft Code also adds new sections covering:

• Reasonable adjustments within disciplinary and grievance processes

• Manager training expectations

• Mediation and facilitated conversations including the possibility of pausing formal processes while mediation takes place

Why it matters: These additions push organisations toward more structured, better-resourced handling of workplace conflict, and signal that managers running these processes will be expected to be properly trained, not simply handed a policy document.

When Does the New Acas Code Take Effect?

The consultation on the draft Code closes on 23 September 2026. Until it closes and a final version is published and approved by Parliament, the current 2009 Acas Code remains in force. Employers don't need to wait, particularly given the wider changes under the Employment Rights Act. You can be reviewing template letters, suspension practices and manager training now to put you ahead of the curve when the new Code arrives.

Frequently Asked Questions

Is the new Acas Code in force yet? No. It is currently a draft out for consultation, closing 23 September 2026. The existing 2009 Acas Code still applies until a final version is published and takes effect.

Does the 25% uplift apply to informal resolution failures? Under the draft Code, yes because informal resolution is being brought into the statutory Code itself, a failure to attempt it could be taken into account by a tribunal when deciding whether to apply the uplift.

Does the Acas Code now cover workers as well as employees? The draft Code uses "worker" instead of "employee" throughout, widening its scope. However, the 25% compensation uplift under section 207A TULR(C)A 1992 remains available for employees only under the current wording.

The INSIGHT LINE

This is the most substantial change to the Acas Code of Practice on Disciplinary and Grievance Procedures in over 15 years. The direction is clear: more emphasis on informal resolution, more documentation of that process, tighter constraints on suspension and a wider net in terms of who the Code protects. Employers should start reviewing internal policies, letter templates and manager training now so they're ready to respond once the final Code is confirmed.

If you need advice then get in touch with Oliver Tasker today:

📞 Call: 01522 776270
✉️ Email: oliver@impactemploymentlaw.co.uk

Impact Employment Law Limited - Advice. Protection. Impact.

This post reflects the draft Code as published for consultation and is for general informational purposes. It does not constitute legal advice.