The Code continues to play an important role in shaping what is regarded as a fair and reasonable approach to disciplinary and grievance issues in the workplace. Employment tribunals must take the Code into account in relevant cases and, where there has been an unreasonable failure to comply with its provisions, may increase or reduce compensation by up to 25%.
Increased focus on informal resolution
A notable feature of the draft Code is the inclusion of dedicated sections on:
• resolving employer concerns informally; and
• resolving worker concerns informally.
The consultation material emphasises that many workplace concerns are low-level and do not require formal disciplinary or grievance procedures, and that concerns should be addressed early where possible. The draft Code therefore contains specific provisions dealing with informal resolution before turning to formal procedures.
The draft Code also includes new requirements relating to disciplinary and grievance correspondence. In particular, the draft requires information to be provided about any informal action that has already been taken, or why informal action has not been taken.
This is one of the clearest procedural additions in the draft and would require employers to review their existing documentation and template correspondence.
Revised approach to suspension
Noting the significant effect suspension can have on working relationships and those involved, the draft Code contains more detailed guidance on its use. It states that suspension should only be considered where it is necessary, for example to meet a legal requirement or to protect the investigation, the organisation, other staff, or the individual concerned. The draft Code also emphasises that any suspension should be as short as possible and kept under review. In addition, it includes guidance on how suspension should be managed in practice, recommending that the decision is communicated sensitively and privately, that the reasons for the suspension are clearly explained, and that the worker is informed of the next steps and any support available. The consultation materials identify suspension as one of the key areas in which the draft Code provides additional guidance.
Wider use of the term "worker"
Throughout the draft Code, references to "employee" have largely been replaced with references to "worker".
Acas explains that it considers it good practice for organisations to follow the Code's guidance in relation to both employees and workers. As the statutory definition of "worker" encompasses both employees and those with worker status, the draft Code generally adopts the broader term except where a provision is intended to apply specifically to employees. This is a notable drafting change and broadens the categories of individuals addressed by the Code. However, the consultation commentary notes that the existing statutory framework governing tribunal adjustments applies only to employees.
New sections in the draft Code
The draft Code also includes a number of topics that are either new or covered in greater detail than before. These include:
- policies and training on handling concerns at work;
- avoiding unlawful discrimination;
- reasonable adjustments (for example allowing the worker to bring a support worker who has knowledge of their disability);
- mediation and facilitated conversations; and
- the role of managers in handling workplace concerns.
The inclusion of dedicated sections on these issues reflects Acas' broader objective of supporting effective workplace relations and earlier resolution of concerns.
What should employers do now?
Although the consultation remains open, employers would be well advised to start assessing whether their disciplinary and grievance procedures, template correspondence and line manager training materials are consistent with the direction of travel reflected in the draft Code. In particular, employers should consider whether managers are equipped to deal with issues informally where appropriate, whether disciplinary and grievance documentation captures the information now envisaged by the draft Code, and whether suspension decisions are properly documented and regularly reviewed.
These proposals arrive at a time when employers are already preparing for significant changes to unfair dismissal law, including the reduction of the qualifying period for ordinary unfair dismissal claims to six months from 1 January 2027. Against that backdrop, employers are likely to face greater scrutiny of workplace processes and decision-making at a much earlier stage of the employment relationship. The draft Code's emphasis on early resolution, clearer documentation and careful use of suspension is therefore likely to be of practical significance well beyond disciplinary and grievance procedures themselves.
If you need any assistance with regard to the issues raised in this update please do not hesitate to get in touch.
