A new era for workplace disputes? Key lessons from the draft ACAS Code

September 8, 2026

A new era for workplace disputes? Key lessons from the draft ACAS Code

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By Damian Phillips

Read time: 4 minutes

The biggest update to workplace disciplinary and grievance guidance since 2009 is on the way following ACAS’s publication of a draft new Code of Practice.

The overall message is clear: employers should focus more on resolving issues early and informally, rather than immediately moving into formal disciplinary or grievance procedures. The draft also uses broader language, referring to “concerns” and “workers” rather than just employees, reflecting ACAS’s intention that the guidance should apply across the workforce.

A consultation on the draft Code is open until 23 September 2026. There is no implementation date yet, but now is a good opportunity for employers to review existing policies and practices ahead of any changes.

A stronger focus on informal resolution

The biggest change introduced by the draft Code is an emphasis on informal resolution. The draft Code puts a strong onus on both employers and workers to consider informal steps before escalating concerns into a formal disciplinary/performance or grievance process, except where there are serious issues that justify immediate formal action (such as sexual harassment).

Informal discussions can help clear up miscommunications, identify support requirements, and tease out training needs. Under the draft Code, employers who choose to bypass informal resolution will have to explain why.

Examples of informal action that would be encouraged are:

• Clarifying expectations from the outset – understanding what it is that the parties are trying to achieve by raising concerns, helps all parties work towards a common goal.
• Identifying a training need – if there is a performance issue, it could come to light during the informal discussions that there is a need for training in order to address a performance issue.
• Offering support – the informal conversations could highlight that any conduct or performance issue may be due to a requirement for reasonable adjustments.
• Considering mediation – mediation can be used at any stage of the process, but initiating the use of mediation early can be successful in helping the parties to function together.

Keeping grievances focused

The draft Code encourages workers to raise concerns clearly and concisely and to explain the outcome they are seeking. This should help to avoid long, protracted grievance investigations spanning long time periods, and marks a more solution-focused approach to grievances.

ACAS also suggests employers may wish to record informal discussions in writing, helping both sides understand the issues and any agreed next steps from the outset.

Use of AI

The use of AI isn’t expressly addressed in the draft Code. However, in the accompanying consultation, ACAS is asking for views on whether the Code should address AI in disciplinary issues and grievance processes.

As many employers have strong views on this, it’s likely that the final version of the new Code will address problems arising from the use of AI in grievances and disciplinary outcomes. Employers should watch this space to see what the final version looks like, and see here for our guidance on AI in grievance procedures.

More transparency

If an employer has to start a formal disciplinary or performance process, they need to notify the worker in writing. However, there is now also a requirement that this letter must detail the informal steps that have been taken in relation to the concern – or why none have been taken (for example, if the matter is too serious to be dealt with informally).

Workers should also be given enough detail about the concerns being raised to understand the allegations and prepare a meaningful response.

The same will apply to workers wanting to raise a formal complaint and they’ll be expected to set out what informal steps they’ve tried to resolve their situation, and if they haven’t taken any, to explain why they’ve moved straight to a formal grievance.

Suspension should be a last resort

The draft Code reinforces that suspension should not be a default response during an investigation. ACAS highlights the potential impact suspension can have on a worker and their workplace relationships.

Suspension should only be used where absolutely necessary, in which case it should be kept under regular review, and as short as possible while an investigation takes place. Employers should also consider alternatives, such as changing duties or restricting access to systems, before deciding to suspend.

A more flexible approach to companions

Although the legal right to be accompanied to a grievance or disciplinary hearing is unchanged, the draft Code encourages employers to think more flexibly about requests for accompaniment by colleagues or representatives, including during informal meetings.

ACAS notes that companions can help workers understand the process, communicate effectively, and support fair outcomes. Employers should therefore give careful consideration to requests, even where there is no legal obligation to allow them.

What should employers do at this stage?

At this stage, employers should start to plan for a very new approach to complaints and conduct issues in the workplace, by:

• Reviewing disciplinary and grievance policies against the draft Code.
• Updating any template letters to include the informal resolution steps that will have been taken prior to reaching any formal action.
• Training managers on informal resolution, reasonable adjustments and suspension.
• Consider responding to the consultation by 23 September 2026.

If you would like more information about any of the issues discussed in this article, or around training, please get in touch with our award-winning employment law team. You can contact us via our contact form, email hello@darwingray.com, or call 02920 829 100 to discuss how we can support you or your business.